Handling Home Titles and Divorce

DEAR BOB: I divorced more than 25 years ago. My ex-husband and I held title to our home together. Because he didn't show up in court, the judge ordered my husband to quitclaim our property to me. But he never signed the quitclaim deed. My attorney said it wasn't necessary because of the judge's ruling in the divorce decree. My adult daughter is concerned that after my death, my ex-husband could claim half of the property. Should I take action now? -- Barbara V.

DEAR BARBARA: It would be best to clear the title of your ex-husband's name now. After you die, he might show up to claim half of the property. Your daughter would then have to bring a quiet-title lawsuit to clear his name off the title, using the divorce decree as evidence. Presuming your ex-husband can be found, you could bring a quiet title lawsuit against him to clear up the title now. When faced with a lawsuit, he might gladly sign a quitclaim deed to you, solving your problem at minimum expense.

DEAR BOB: I was shocked to learn from your recent column that I should deed my residence and rental property into my revocable living trust. I have a living trust that specifies how my assets are to be distributed after I die. Do I have to sign a notarized quitclaim deed in recordable form from myself to myself as trustee of my living trust? -- Hugo T.

DEAR HUGO: Yes. Until you transfer title to your real estate into your living trust, you have an "empty trust."

If you die tomorrow, your named successor trustee (such as an adult child or a bank trust department) would have no authority to distribute assets that are not part of your living trust. They would have to be distributed through the local probate court, a process that often takes a year or longer.

It is simple to execute and record a quitclaim deed to yourself as trustee of your living trust. Be sure to record that deed. Then, when you die, your successor trustee can distribute the living-trust assets as you directed, usually within a few months after your estate bills are paid.

DEAR BOB: My husband and I are able to pay more than 20 percent for a down payment when we buy our next home. However, the mortgage lenders we consulted seem to be against our making such a large down payment. Is there a valid reason for a 20 percent down payment, or should we search for better mortgage lenders? -- Prastavna M.

DEAR PRASTAVNA: Most mortgage lenders love to approve home loans in which the borrower pays 20 percent or more for the down payment. The larger the down payment, the safer the mortgage for the lender, so you will probably get the lowest interest rate if you have good income and good credit. So shop around. You contacted the wrong lenders, ones who want to maximize the loan amount and their fees.

I suggest making up to 30 percent cash down payment. Then you won't have an excessive amount of cash tied up, just in case you buy a bad house.

DEAR BOB: We listed our empty condominium unit for sale with a real estate agent until October. She is unable to do an open house every weekend, so my husband and I went over and held an open house. We think we have a buyer. The listing contract says we owe the agent a sales commission whether we find a buyer or she does. This was our second open house, and the agent wants us to hold another one next weekend.

She did not return our phone calls, so my husband went out and bought some "for sale" signs. We are willing to pay a sales commission, but we want to be paid for our time. When I finally talked to her on the phone, she said to tell the buyer to phone her. Can I just take the buyer to the title company? Or can I sell to the same buyer after the listing expires? Any tips on firing a lazy agent and getting paid for our services? -- Patty H.

DEAR PATTY: Why did you sign such a long exclusive-right-to-sell listing? No wonder your listing agent is so lazy.