How to properly transfer title?
So I hope I get this in the right forum - I have a friend who is looking to take over payments from a seller on a SFR and take title (seller just wants to effectively give the house away as long as the new owner takes over the payments). The outstanding loan amount is $160k and the property is worth more than that (this info is not really pertinent to the question).
The question is: what is the best/safest way to do the transfer without spending more money than necessary? Is a quit claim deed the way to go? Would this be done via a title company, escrow company? Is there a ballpark fee that is reasonable for this service? Would it make sense to purchase title insurance? Are any specific disclosures needed in the contract from a liability stand point since he is taking over payments?
Those are the questions I can think of. His plan is to refinance the property within a couple months (the equity is there and the current rate on the loan is 7% so a refinance would make sense).
Another option is to finance it at the time of transfer/purchase with a purchase loan (to payoff the existing mortgage). Do the rates for purchase loans and refinance loans differ? and is it harder to refinance than get a purchase loan? If he gets a purchase loan, will that complicate the purchase process more (i.e. make it more expensive) than if a simple title transfer is done?
I apologize for so many questions, hopefully I don't confuse you guys too much :)
