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Co-signers can be dropped from title


Q: When I purchased my house in 1986, I had to use my parents as co-signers to qualify for the loan. Now I am planning to refinance without my parents since I am able to qualify on my own. I have paid all the house payments and tax bills by myself since 1986. I would like to exclude my parents' names from my home title and property tax bill. How can I do this? Will it affect my property tax bill? -- J.D.W.

A: You can accomplish your goal simply by having your parents execute what it known as a "quit claim" to your home. This document says that they drop any claim they have to the property and leaves you in sole possession of it. These documents are available at title or escrow companies and should be filed with the recorder's office in your county. Your parents' quit claim to your home will have no effect on your property taxes because of allowances in Proposition 13 exempting real estate transfers of up to $1 million between parent and child.

Write to Your Money-Money Talk, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, Calif. 90053.

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