Can someone educate me on quick deed claims?

Question

Nick L. · Answer

@Aron CohenTitle insurance makes everything good from your perspective. Even if there is a title issue the insurer will cover it. You will be able to sell on a warranty deed in the future.

I'm in a similar position right now. Buying a property from an online auction and seller will only give a QCD. But title is clean and my title company will insure it, so it's all good.

Word to the wise... Have your attorney look over the title policy to make sure all exceptions are standard. Some shady title companies will try to exclude so much from their policies that the insurance is basically worthless.

Ned Carey · Answer

Generally as long as you are getting title insurance you should be fine. You can use the title company that gave you title insurance this time to handle the refinance. A title company should be able to look at the case file to see that the mortgage companies were served properly

Your situation is very specific. I am not an attorney and cannot give you legal advice for our specific situation. I would ask your attorney what your risk is assuming you are able to  get title insurance form another title company.

Keep in mind that often this type of thing becomes VERY technical. Title companies aren't just concerned about the ability to win a challenge over the title. They don't want to pay to fight any challenge that  might come up, win or not.

Ned Carey · Answer

@Bryan Cohenas already mentioned the term is Quit Claim Deed, not "Quick"

Generally a quit claim deed is a red flag. A quit claim deed does not even necessarily transfer any title at all. Send me $2,000 and I will send you a quit claim deed for the Trump Tower.

Settle this deal at a title company and have an attorney do a title search and get title insurance. If a title company will insure the title I would consider accepting a quit claim deed. But I would have to know why a quit claim was used and would asses the risk.

Often title issues will never come back to do any harm but it can  mean you can't give clear title when you go to sell or refinance.  Sometimes I don't care if I am getting the property cheaply enough and plan to keep it as a rental forever.

Generally a quit claim deed says something like: "Whether I have any interest in this property or not, any interest I may have I grant to you. "

Jeff B. · Answer

The template looks something like: The critical part is is typically the same as . In this form, the owner changes the VESTING of the title, NOT the ownership ================================ This QUIT CLAIM DEED, executed this ____ day of _______________, _________The undersigned grantors declare Tax parcel No ____________________ Documentary transfer tax is $0.00, City Tax is $0.00For valuable consideration of the sum $ZERO Dollars ($0.00) paid to and receipt is acknowledged by{FROM} , Hereby remise, release and forever QUIT CLAIM to{TO} , The following described real property {legal description}IN WITNESS THEREOF, the said grantors have signed and sealed these presents on this day and year... -- followed by the Notary Seal and Signatures -- (example is illustrative ONLY and should not be considered as correct for legal use)

Rick H. · Answer

Are you sure your profile title is investor? Is that correct?

There are a number of ways to pass (transfer) title from one owner to another. Just because you a Deed from A to B does not mean you have clear title. Clear title means that there no other claims upon the title interests of record owners, such as mortgages, tax liens, judgments and defects in the recorded chain of ownership.

It make look like a little thing to you but may mean your title includes lots of attached baggage, like undisclosed debts, liens, lawsuits and even brownfield issues (hazardous substances).

I hated title research when I started many years ago but came to learn how to make money from the mistakes and oversights  by others.

Wayne Brooks · Answer

Talk to a local attorney, spend a couple hundred bucks and get a title search, get one for each property! If they're only offering a QCD it means they Know there is a problem, maybe $10's of thousands in liens, or they really don't have clear title (maybe an heir somewhere never signed, a divorced spouse didn't sign, etc.).

Nick L. · Answer

They're called quit claim deeds. And yes they can be very risky.

What is so wrong with title on this one property that you can only get a QCD? Have you had a title company search it?

A QCD just says, I am giving you whatever interest I may have in the property. That interest may be non-existent - I can quit claim you a deed to the Golden Gate Bridge. Or it may be a real interest but encumbered by a bunch of liens that you will have to pay off.

There is a role for QCDs, for example in family transfers or in REO auctions where the buyer is responsible for the title being valid. But not in regular transactions.

Wayne Brooks · Answer

Exactly as @Nick L.said, have your attorney check the "B" section exceptions.

Can someone educate me on quick deed claims?

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