Best Way to Transfer Ownership?

Question

Hello Everyone,

I am looking for advise on the best way to transfer ownership of a property (most legal protection). I quick summary. Both properties are in California so Warranty Deeds are not used, only Grant deeds or Quit Claim deeds.

I bought a property from a family member a year ago. Without much research and only listening to said family member we did this with a Quit Claim Deed only. Everything has been smooth but with said family member in failing health now I am concerned I have not done enough to protect my full claim of ownership on this property. I currently have no title insurance on the property but that will change.

I am also now about to purchase a second property from the same family member. However this time I want to make sure I do things 100% right and give myself as much legal protection as possible. I feel a bit exposed with just the Quit Claim Deed.

Should I just contact a title company and pay the closing cost to go through them? Or can I do a grant deed, file it and just purchase title insurance? Will purchasing title insurance on the fist property be enough to guarantee 100% right of ownership? Are there any other steps I should take?

Thanks in advance for all information or input

Blake Chapman · Answer

Thanks for the reply. I have been on the fence with titling the properties under a entity like a LLC. Simply because I am planning on tapping the equity on the first property to help finance some larger multi-family properties and I know that getting a loan with the entity makes it much harder than just securing it with my credit.

I found a local title company here, they are willing to open up a escrow account and do everything. But I do not want to waste any money if I can accomplish the same protection with a grant deed and title insurance. But if it guarantees me maximum protection then  I have no problem paying.

Account Closed · Answer

Hey, @Blake Chapman Do you have any investor friendly title agents? They can clean this up and also let you know if you can transfer title into an entity while paying least possible tax / transfer fees. In Maryland, in most cases you can transfer without the above as long as you are a member of the entity. Good Luck!