How do I "Deed" a Property?

Question

I'm purchasing a property from a friend. It is a 1,000 ft 2bd/2ba SFR that has been vacant for 8 years and is in need of significant repairs. The agreed sale price is $22,000. He is selling it to me on a zero down, owner financed, personal note and I am going to self-fund most of the repairs. My question is, what is the absolute minimum that must be done to transfer title to the property? Someone suggested "Just have him deed the property to you" but I'm not sure how the mechanics of the transaction work. A title company has quoted me $1,700 to close the transaction. I'm sure there is a less expensive way to transfer the title even if it involves a bit more work on my part. Any suggestions?

Tom Gimer · Answer

OP's question was exactly this:  My question is, what is the absolute minimum that must be done to transfer title to the property?

Some of us replied to that question.

On a $22,000 purchase from a friend who is 100% financing the deal and will sign a warranty deed? A title company is not worth $1,700.  Most people could conduct a title search in 30 minutes which confirms this transaction is free of red flags.

Tom Gimer · Answer

Pull the current deed from the land records. Copy it word for word except the grantee (your friend) becomes the grantor, you become the grantee. If there is a being clause, update it with recording info of prior transfer. Dates and dollars change as well. Pay recording fees/taxes and record among the local land records.

Stanley Bronstein · Answer

@Peter Hightower  I would recommend using the title company, even if it costs $1700.  You will be getting a title insurance policy and they will check over title before you close. You never know, but you could accidentally be walking into a property that has lots of title issues.

The last thing you need to do is spend a bunch of money to improve a property and then find out it has title issues.

The title company is worth every penny of that $1700.

Khanesia Washington · Answer

Make sure you do a quick deed search to see if there are any existing liens prior to filing with county clerk if you will not be using a title company. Also check with a real estate lawyer for their fees if you want some protection.

Stanley Bronstein · Answer

@Peter Hightower. Thank you for voting for my post. I'm glad you appreciated my answer to your question.  Good luck on your transaction.

Peter Hightower · Answer

Excellent. Exactly the info I was looking for. Thank you both.

How do I "Deed" a Property?

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