Closing via Quit claim deed? 5,000 deal in Chicago?

Question

Hello everyone,

I received a call from a motivated seller for a property he wants to sell in the southside of Chicago. He said he would take 5,000 for a 4bd/2BA property (which I just found out is a 2BD/1BA). He said roofing and siding was done and he started some work in the basement.

Then he sends me an e-mail with his requirements:

1. Deposit $100, non refundable. 2. Closing to be via quit claim deed, by me and at the time of giving all the documents ( within 2 weeks ), $5000 to be given in the Chase bank, via Cashiers check.

He said the building has no violations. Has anyone done a closing via Quit claim deed? I'm not familiar with the term.. but this is what I read from Wikipedia and sounds very sketchy..

"offers the grantee no warranty as to the status of the property title; the grantee is entitled only to whatever interest the grantor actually possesses at the time the transfer occurs.[2] This means that the grantor does not guarantee that he or she actually owns any interest in the property at the time of the transfer,[3] or if he or she does own an interest, that the title is free and clear"

Any thoughts?

Scott K. · Answer

so lets go over this.

The guy lied right to you that it was a 4/2.  You found out it is a 2/1.

He "said" the roofing and siding were done.  That right there would be well over 5k right there.

He started some work in the basement.  Translation:  He got into something and found way way more repairs than he wants to deal with.  (plumbing, foundation problems, water and mold problems.

Do not see the price of 5k and get caught up in the what could I lose.

Do not ever buy property without a warranty deed (full disclosure my wife is the President of a title company)

Never trust a seller EVER.  Why would he want to dump it for this price?

He doesn't want you to do a search on this property.  Might have liens on it or a huge tax bill.

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

David Krulac · Answer

Account Closed

We never do purchases with a Quit Claim Deed.

1.  Recommend you do not accept a QCD

2.  Recommend you get a good real estate attorney

3.  I'd be skeptical when the seller tells me is a 4-2 and ends up being a 2-1.

4.  All deposits held by an attorney in escrow.

5.  100% refundable if:

not marketable title

home inspections determine major problem

Lumi Ispas · Answer

@Danile Moctezuma, In Chicago the sale through a Quick Claim Died has become illegal about 1-2 years ago.

There is a legal way to buy a home though bypassing a full closing and that's through placing the home in a Trust and then changing the beneficiaries. Chicago Title will do it that way, as long as you pay the City/County/State Stamps due on sale.

Let me know if you need help with this next time and I will send you the info of the guy I work with at Chicago Title.

Crystal Smith · Answer

My thoughts:  Trust but verify (Actually if I received the email from your potential seller I wouldn't trust any of it.)  I've only done quit deeds w/ close business partners or family;  when I knew the history of the property.  Here are some resources to verify your seller's claims:

1.  Building Code violations.  Not always up to date but a place to start  http://www.cityofchicago.org/city/en/depts/bldgs/p...

2. You can research the chain of ownership & potential liens filed against the property.  Again not always up to date.  You'll need the PIN of the property. http://cookrecorder.com/

You may want to ask for a warranty deed & offer to pay for the the title search & insurance, especially if your objective is to wholesale the deal to someone else.

Account Closed · Answer

@Crystal Smith Thanks, that's great advice. I didn't even know I could check building violations online. That's a great resource.

I told him I would take care of all the closing costs but he still refused. I think I'm just going to pass on this one.

Account Closed · Answer

Thanks everyone for your prompt responses. I just got an e-mail from him and he told me  won't sell the property unless we close via quit claim deed. I'm just going to pass on this one, better safe than sorry.

Dooreuhn Cee · Answer

Account Closed if the deal is good, just pay for the warranty deed... he may just be trying to avoid the title policy fee which is covered by seller

Ron Drake · Answer

With a quit claim deed you will get all his interest in the property. If he does not have a clear title or 100% interest that is what you will receive. If you accept this and try to sell later, good luck is all I have to say.

Guy M. · Answer

"He said he would take 5,000 for a 4bd/2BA property (which I just found out is a 2BD/1BA)"

Confront the seller about this lie. Step #1...

Closing via Quit claim deed? 5,000 deal in Chicago?

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