WHO NEEDS TO SIGN QCD

Question

Hey BP, I have a situation where I'm trying to have Quit Claim deed done to transfers a property into my name.

The owner is married, but only her  name is on the county records.  Is it required for the husband to  sign also in order  allow for proper recoding and to avoid future possible issues?

Thanks in advance!

Bill Gulley · Answer

Lee, deeds are universal, a QCD is not for use between unrelated parties, they are to transfer title between related parties having a common interest, there is no warranty. Such as, conveyance to your LLC or your Trust or family or from one spouse to another, they ae not to be used for conveyances to third parties.

The parties in title are in joint tenancy, one should convey a "one half undivided interest" by a warranty deed or special warranty deed or grant deed, not a QCD, the deed will state that 1/2 undivided interest.

Do not listen to investor types, most are expert investor types are without a clue, talk to an attorney! If some nut at a title company suggests a QCD ask for title insurance coverage on that conveyance,

If a conveyance is not to or from a related party or entity, like partners, it is not the proper deed to be used!

If Matthew comes to this thread I'm sure he will explain that as well.

It's just paper, don't use the wrong piece of paper! :)

Matthew Kreitzer · Answer

Good afternoon Lee,

If you are looking to have a real estate transaction done and want to protect yourself from problems down the line, that can really only be done with any reliability by having an attorney help you out. I would only accept information from attorneys who are licensed to practice in Florida, as people in other state are unlikely to understand the nuances of your state.

Whether you should have the Husband sign onto the QCD (or whether the QCD is appropriate) depends on additional information, such as how the property is titled, the types of encumbrances on the property, and what your ending goals are.

Seek out an attorney soon.

Lee Scarlett · Answer

@Bill Gulley, @Daren H. that's straight shooting, very informative and helpful.  Bill, I especially appreciate the detailed explanation.  Thank you both again!

Daren H. · Answer

@Lee Scarlett Wasn't trying to offend on the saving money comment. To your question, we use title companies here in Texas; however, I have also worked directly with an attorney on a particular transaction. I would imagine most title companies can complete a QCD transaction just as an attorney could (after all title companies have a law office on their team).

While I cannot answer with certainty the difference in terms of closing costs and benefit to you (attorney vs title company), I would imagine closing costs would be similar minus the title insurance and third party fees. The costs were similar in my particular situation. One thing that was very different with using the attorney is that I got direct face to face feedback from the legal expert who was able to answer all my questions, educate me and give me additional things to consider along with recommendations on my particular transaction. The attorney held my hand you could say. My personal experience with title company officials is that a lot of them have basic paperwork knowledge but are not equipped to advise beyond that. You never see or talk to their attorney (in my cases).

Lee Scarlett · Answer

Thank you for the post @Daren H.  Since I became a member of Bigger Pockets I started investing myself into learning. I have learned the clear difference between a QCD and a Warrantee Deed.  I do understand about using a lawyer in some or most cases.  Why you decided I'm trying to avoid spending a few hundred dollars I'm not sure.   So, let me ask you a simpler question.  Here in  Florida we use tit companies for closings.  A few have  quoted me on doing the QCD (after lengthy discussions about the Warrantee Deed and title insurance).  I know you're not a lawyer or one in Florida but do you think a title company is as good in preparing the QCD as a lawyer would be?  Is there a clear advantage one way or the other?

Lee Scarlett · Answer

Thank you for the wishes @Pyrrha Rivers... No further comment!

Daren H. · Answer

I agree that "go talk to an attorney" is not always necessary in every facet of real estate or life but we are talking about a matter of transferring interest and/or ownership (a pretty big deal). Most people outside of Florida don't know Florida real estate law. Most people in Florida don't know Florida real estate law so be careful about the advice you receive in a free forum (mostly non attorneys). Only you know the details so I assume it might be difficult getting a good answer to your question. I will ask if you are truly getting a deal in this case, why skimp on a few hundred bucks to work with an attorney? Ultimately, you are going to need an attorney relationship in this business anyway.

Also, beware of quit claim deeds for owning property. In Texas for instance, it could be pretty useless and risky in most traditional cases. For example, a quitclaim deed conveys the interest, or claim of the grantor in the real property, but it does not profess that the title is valid nor does it contain any warranty or covenants of title. A quitclaim deed does not establish title in the person holding the deed, it just passes whatever interest the grantor has in the property.

Pyrrha Rivers · Answer

@Lee ScarlettYou are absolutely right when you say "this is a forum where people come to share and learn" @Matthew Kreitzer very generously shared his knowledge with you as well as @Bill Gulley. Do yourself a favor and consider the advise you have received. If you just want to hear what you have been hearing before, there is not point in posting here with a question. These people are very knowledgeable. Do yourself a favor and listen.

Best wishes on yor endeavors.

Lee Scarlett · Answer

Thank you @Bill Gulley, I have been hearing about you.  I've also been reading many of your post.  Let me take the opportunity now to say thank you for things I've learned from you that you most likely didn't know. In this particular case I believe that remedy here is a QCD.  If I were to explain in detail I think you would agree.  Right now I'm dealing with the grantor and just need to know the proper things to say at this time.  I have spoken to several persons that suggest that I need a QCD in this particular situation. The only issue is that the deed is in one name but I need knowlege on how community property affects this.

Lee Scarlett · Answer

I really appreciate your intent Matthew, but please also understand that this is a forum where people come to share and learn (At lesst, that's how I understand it).

WHO NEEDS TO SIGN QCD

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