This article about how to transfer a real estate title should have pointed out that, in many cases, federal law specifically exempts the transfer of property between spouses from a mortgage's due-on-sale clause.
THE ANSWERS
Adding Names to a Title
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Q: My husband bought our house in his name only before we were married. My credit wasn't as good as his, and I wasn't making much money, so not being on the mortgage and title was fine with me. We have been married for six years now, and I would like to be on the title. Is it possible to add someone to the title who is not on the mortgage? I'm also curious about the reverse: Can you have a title in both names but then get a mortgage using only one person as the qualifier? We might refinance later this year. -- Virginia
A: You shouldn't have any trouble on either count, according to John M. Braswell, partner at Redmon, Peyton & Braswell, an Alexandria firm that frequently works in real estate transactions.
Your name can easily be added to the title using what's called a quitclaim deed. Before you do that, check with the mortgage lender. "Virtually all conventional mortgages and deeds of trust contain a 'due on sale' clause, which states that if the property is conveyed, it will accelerate the installments under the promissory note," Braswell said.
"However, all things are possible with the consent of the lender," he said. "If one wishes to add a spouse to the title, it would be wise to obtain the consent of the lender in advance of doing so. If the lender refuses, it would indicate that adding the spouse might displease the lender. A wise person would wish to avoid displeasing his lender."
Refinancing shouldn't be an issue either, he said. "Lenders often make loans to only one borrower, secured by real estate owned by more than one person. As long as all of the owners of the real estate execute the deed of trust, the bank will have the requisite security which it needs in the real estate."
-- Mary Ellen Slayter
