How can I switch ownership of a house over to my name from a family member?

Your aunt can sign a Warranty Deed or a Quit Claim Deed transferring the property to you. In most states, an attorney is needed to prepare a deed. Those legal fees vary, but can be anywhere between $150 - $500. There will also be recording fees to have the deed recorded in the County Register's office where the property is located. Depending on the value of the property, there may be gift tax consequences to consider.

While it is true that preparing a deed and recording it are the actual steps involved in changing the ownership over, you have to look at the bigger picture to determine if it is a smart thing to do. There can be a number of unintended consequences of such an action that need to be reviewed by a lawyer. Things to think about are: is she moving out or staying? What are her goals? Does she need or will she need long-term care? Has the house appreciated in value since she purchased it and are you as the recipient fully understanding the income tax implications when you sell it? Believe it or not there is quite a lot more to the transaction than just the deed which involves fully understanding what the owner is trying to accomplish as well as what you wish to get out of it.

First off do it yourself real estate transfers are very difficult in NJ because a deed and tax forms are needed. Second before transferring real estate, it's important to consult an elder law attorney or your aunt could be hurting herself. I'd expect total legal fees and recording costs to be over $1,000.

It is relatively an easy process to have an attorney draft a deed, have your aunt sign it, and file it. However, there are serious issues involved that you, and more so she, needs to understand. She may need to sell this house and use the cash from the proceeds to survive in her elder years-to pay for nursing care, assisted living or nursing home care. There are many other considerations such as Medicaid. If she needs to apply for Medicaid in the next five years, to survive, the transfer to you can make her ineligible for Medicaid funding. Also, she may lose her senior citizen discounts on real estate taxes if she transfers title to you (at least in PA, not sure of NJ). The house, when put in your name, is subject to any credit problems you have or liens if you are sued and a judgment is taken. I highly recommend that she speak with a lawyer before doing this.