Hello Folks,

How to sell out a property investment using the

“Quit Claim Deed” or what we generally known as

“Quick Claim Deed”?

Have anyone tried this way of selling investment properties from one Entity to another, ex.

One LLC stated in Florida sale or transfer a property to another LLC stated in Delaware.

My question and doubt came out today when I tried to clean the history CDOM of that property showing in the records that was Sold (not everybody knows what is a QCD) specially in Zillow, Trulia, etc.-

I really found it as an interesting Strategy but what I'm not sure is, if we can change the Active status in the MLS for Pending and later on as Sold using "QCD".

Some attorneys sayid that the QCD is not for sales only for transfers properties between families, friends, etc.

Any suggestions??? Or Comments are very welcome!

Originally posted by @Nestor C. :

Hello Folks,

How to sell out a property investment using the

“Quit Claim Deed” or what we generally known as

“Quick Claim Deed”?

Have anyone tried this way of selling investment properties from one Entity to another, ex.

One LLC stated in Florida sale or transfer a property to another LLC stated in Delaware.

My question and doubt came out today when I tried to clean the history CDOM of that property showing in the records that was Sold (not everybody knows what is a QCD) specially in Zillow, Trulia, etc.-

I really found it as an interesting Strategy but what I'm not sure is, if we can change the Active status in the MLS for Pending and later on as Sold using "QCD".

Some attorneys sayid that the QCD is not for sales only for transfers properties between families, friends, etc.

Any suggestions??? Or Comments are very welcome!

Using QCDs is a seriously flawed approach. It invalidates title insurance. It causes legal problems. Listen to the attorney, he is correct.

@Nestor C. a quit claim deed is the weakest deed possible. It is a poor choice for almost all situations. (By the way there is no such thing as a quick claim deed, that is simply misuse of the term.)

A quit claim deed essentially says, If I have any rights in this property, and I am not saying I do, then any rights I  may or  may not have go to you.

A quit claim deed is perfectly legal for sales. It benefits the seller and is a severe disadvantage to the buyer. It can be insured with title insurance, however without title insurance it may be virtually useless. It is generally a red flag particularly when used for a sale. 

I totally agree with you guys Account Closed when there are more than one member, but in the case where both LLC has a Sole Member, there would be nothing to worry about! That make sense??

So @Ned Carey is it legally to change the listing status to pending and later on to Sold with this QCD??

Originally posted by @Nestor C. :

I totally agree with you guys @Account Closed @Ned Carey when there are more than one member, but in the case where both LLC has a Sole Member, there would be nothing to worry about! That make sense??

So @Ned Carey is it legally to change the listing status to pending and later on to Sold with this QCD??

If the property is listed on the MLS and it is sold ,even for a $1 you can mark it pending then to sold status . The type of deed is not important on the MLS only the sale , whether it be cash, financed subject to etc.I do not seen any type of strategy you are trying to accomplish

Originally posted by @Account Closed when there are more than one member, but in the case where both LLC has a Sole Member, there would be nothing to worry about! That make sense??

So @Ned Carey is it legally to change the listing status to pending and later on to Sold with this QCD??

If the property is listed on the MLS and it is sold ,even for a $1 you can mark it pending then to sold status . The type of deed is not important on the MLS only the sale , whether it be cash, financed subject to etc.I do not seen any type of strategy you are trying to accomplish

It seems he is trying to update DOM (days on market) and get the listing registered as "Sold" since it apparently did not close as a normal transaction. Instead it closed as a creative transaction (Wrap, Subject To, Owner Financing) or maybe not as an "arms length" transaction and have it show up as "Sold" on Zillow. 

Originally posted by Account Closed when there are more than one member, but in the case where both LLC has a Sole Member, there would be nothing to worry about! That make sense??

So @Ned Carey is it legally to change the listing status to pending and later on to Sold with this QCD??

If the property is listed on the MLS and it is sold ,even for a $1 you can mark it pending then to sold status . The type of deed is not important on the MLS only the sale , whether it be cash, financed subject to etc.I do not seen any type of strategy you are trying to accomplish

It seems he is trying to update DOM (days on market) and get the listing registered as "Sold" since it apparently did not close as a normal transaction. Instead it closed as a creative transaction (Wrap, Subject To, Owner Financing) or maybe not as an "arms length" transaction and have it show up as "Sold" on Zillow. 

 Then if its off market he can enter the the sale on Zillow agents profile ,but will not have all the pending and sold status as an mls listing

Here in Florida it is very common to see that kind of transactions specially with properties under a LLC. Here we are experiencing a lot of recession and the predictions for next year does not seem very encouraging, although we are not like in the bubble years but the cycle is repeated every 10 years

Thank you guys for your feedback!