Many real estate agents will tell you that you can take title “however you want.” This may (or may not) be true. The name of the purchaser on a real estate transaction contract matters! The transaction is governed by the contract which includes the title policy, homeowners’ insurance, and mortgage documents. Assigning a contract before closing or deeding the property after closing can sometimes be done, but not always, and may cost additional fees. If you are married or have minor children and this is your primary residence, you need to consider homestead. If you want the property to be in an LLC and you want to rent the property, you should consider whether your homeowners’ insurance will cover rentals. If you are considering deeding the property to a Trust with multiple beneficiaries, you may have to pay additional documentary stamp tax. It is important to discuss your real estate transactions with an attorney before the contract is executed.
-Emily A. Helmick, Esq.