Want to Buy a Quitclaim Deed and Don't know settlement or closing

General Real Estate Investing
9yFollow

Want to Buy a Quitclaim Deed and Don't know settlement or closing

Jose Ortiz
Investor · Capitol Heights, MD · Member since 2017 · 11 posts · 0 votes

First off, thank you all for taking the time to help a newbie out. I have done couple of deals and all have been with a real estate attorney. This one is a little different. I would be purchasing a Quit Claim Deed (QCD) and all the attorneys seem to be more interested in getting my deal or telling me it's a scam then trying to tell me how to go about purchasing it.  BTW I have already done a title search and have found some liens that I am willing to pay off, plus pay them something for the QCD

Here's what I understand so that I don't get the same response as the attorneys: 

* I understand that I am buying whatever rights (if any) the person who is selling it to me may or may not have. 

* I understand that if there are any outstanding liens, I am responsible

* I understand that the QCD is the least protected of them all

Here are my questions:

* How do I go from buying a Quit Claim Deed to getting any sort of Title on it with my name on it? Be it special Warranty or Guaranteed or as long as it's not a  QCD? 

* How do I do a settlement? (If there is a place that already tells me the steps, please give me the link) I will happily do the leg work in order to avoid fees. If you could explain the order, that would be great too! IE 1.. Do Title Search, Get Insurance 2.. Go to the county to record deed 3. Pay fees (since I don't know I'm just showing how I'd like to get the info, sorry to be so direct, but I'm really frustrated with the none-information I am getting from attorneys and settlement people). 

* Do I need a HUD-1 Form? Is it hard to fill out?

Thank you for your time and help in this matter, I truly appreciate it! 

0Reply
20 views

2 Replies

Jump to latestLatest
  • Chris Martin
    Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    9y
    What? You say the "...attorneys seem to be more interested in getting my deal..." ?? Can you explain?

    Your questions make no sense. What are you trying to do? Are you trying to buy a property?  Or is someone offering something else, like a document that may or may not have enforceable rights? Are you drafting the documents yourself and 'playing attorney'? You don't "buy a QCD", an attorney drafts and records a QCD as a by-product of a real estate transaction.

    0Reply
  • Jay Elggren
    Stansbury Park, UT · Member since 2017 · 13 posts · 10 votes
    9y

    Hey Jose,

    Does the seller have a mortgage on the property or is it owned free and clear?

    You need to be careful about QCD or anything that will change or modify title. Any time there is a change of title it can trigger a sale with the IRS or the lender's Due on Sale Clause.

    The way I avoid the IRS calling it a sale and triggering the DOS Clause is by placing the property in a trust with the original seller as a beneficiary of the trust. Federal law and the Garn–St Germain Depository Institutions Act of 1982 prohibits banks for calling the note due as long as the original borrower is a beneficiary of the trust.

    Placing the property in a trust allows you to set up triple net lease to protect both you and the sellers interests. Not only are you protected but now you control the property as a beneficiary of the trust.

    I have escrow agents and my attorneys that handle all my settlements.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free