Adding a name to a deed is a significant legal action that transfers ownership or a portion of property ownership to another individual. Often, individuals opt to bypass legal counsel and handle the deed themselves. It may seem straightforward—pick up a form from an office supply store, fill it out, and record it. What could possibly go wrong? Quite a bit, actually.

One unintended consequence is when  new spouses, relatives, non-relatives, such as boyfriends, girlfriends, or friends, are added to the deed, and the relationship sours, removing that individual from the deed becomes challenging. After all, you gifted a part of your real property to this person for free.  This leaves you with  few options: convince the unwanted party to voluntarily deed back their share (a daunting task if the relationship is contentious and they may want  you to pay them half of the equity) or engage in costly and lengthy litigation, often resulting in a partition action where attorneys’ fees take precedence and the property is sold and they receive half of the sales proceeds.

Additionally, adding someone to a deed can lead to losing Florida homestead exemption under certain circumstances (such as if the are already on a homestead for example), resulting in the loss of significant tax benefits. Incorrectly worded deeds may also result in property transferring to the wrong individual, derailing estate planning goals. Also, failure to execute the deed correctly according to Florida law renders it invalid and causes title chain problems.

Furthermore, adding a name to the deed complicates property sales or refinancing, as all parties must agree and sign documents. Individuals receiving government benefits like Medicaid and Social Security may jeopardize their eligibility by being added to a deed. Moreover, adding a name to a mortgaged property may trigger the due-on-sale clause, leading the bank to demand immediate repayment of the loan and potentially initiate foreclosure proceedings. If the other person doesn’t live in the property and they file bankruptcy the trustee could also force you  to buy out their interest or force sale of the property.

Consulting an experienced attorney before making changes to a deed is advisable to avoid costly legal entanglements.