Can a Quit claim deed get the job done?

Rental Property Investor · Cockeysville, MD · Member since 2016 · 48 posts · 9 votes

I have a potential deal where the sellers are deceased and the property is behind on property taxes. The daughter of the deceased parents still lives there and has no issue with me getting the property. I believe that a Quit claim deed should be done first before I pay the taxes. The current deed has the deceased parents names still attached to it and it’s a strong possibility that I can get this property before it goes to the tax sale auction. Any suggestions on how to structure this deal properly would be great. -the property is paid off -one of the children still lives in the property (there is a sibling who doesnt live there. -who exactly would I get to sign over their interest if neither of the children’s names are tied to this home?

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Mike Hartzog

Lender · Redmond, WA · Member since 2014 · 553 posts · 490 votes

I would get a title search done as the next step so that you can understand exactly what encumbrances you would be taking on. Then, if you want to move forward, Quit Claim deed would do the job of transferring title, and you would want to do that before paying taxes. It would be best to work with a title company to do the search, the doc prep, and recording of the deed.

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Mike Hartzog
Lender · Redmond, WA · Member since 2014 · 553 posts · 490 votes
7y
I would get a title search done as the next step so that you can understand exactly what encumbrances you would be taking on. Then, if you want to move forward, Quit Claim deed would do the job of transferring title, and you would want to do that before paying taxes. It would be best to work with a title company to do the search, the doc prep, and recording of the deed.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Mike Hartzog:

I would get a title search done as the next step so that you can understand exactly what encumbrances you would be taking on. Then, if you want to move forward, Quit Claim deed would do the job of transferring title, and you would want to do that before paying taxes. It would be best to work with a title company to do the search, the doc prep, and recording of the deed.
you definitely want to get a title commitment on this it will tell you who is authorized to transfer title.. if there was no proper probate then that needs to be handled..
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Victor N.
Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
7y
After you get the title commitment, consult an experienced real estate lawyer licensed in the same state where the property is located. Based on your description, it is very likely that there will need to be a probate proceeding or an interstate administration or a determination of descent to authorize someone to sell the property to you and convey merchantible title. There may be liens to deal with as well.
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Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
7y
Aren't quit claims more or less worthless as a form of protection in a deal? As in I can quit claim the white house to you and be legal....
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Kyle Howard
OP
Rental Property Investor · Cockeysville, MD · Member since 2016 · 48 posts · 9 votes
7y
@Victor N. So doing the title search should cover everything to find out if there are any Liens on the property. Once everything is all clear what would be the best way to find out when the auction may be taking place?
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Kyle Howard:
@Victor N.
So doing the title search should cover everything to find out if there are any Liens on the property. Once everything is all clear what would be the best way to find out when the auction may be taking place?
title commitment does the following.
1 tells you legal owner as of the date of the title report
2. gives you the legal description to confirm you even looking at the right property.
3. and mortgages liens or judgements against the owner of record.
4. it will determine if further estate works needs to be done to remove someone who was in title in the past and is no longer living.
some properties title can never be cleared..
Quit claims are fine in some states in others you will have a problem insuring them going further.
If there is hair on this you can take title by quite claim deed and use it as a rental but will probably not be able to sell it or finance it.
so if its cheap enough and your keeping it as a long term rental then quit claim is fine.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Matt K.:

Aren't quit claims more or less worthless as a form of protection in a deal? As in I can quit claim the white house to you and be legal....
some states are fine with them and use them routinely Like Mississippi .. other states no Bueno
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Stanley Bronstein
Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
7y
@Kyle Howard Quitclaim deeds simply serve the purpose of transferring any title that a person MIGHT own. If you have a situation where there is a beneficiary on the property that MIGHT have an ownership interest, then quitclaims can do the job of transferring any title they MIGHT own to you.
Plain and simple, get the title check and have it reviewed by a knowledgeable real estate / estate planning attorney licensed in the state where the property is located.
Once they've reviewed everything, take their advice.
If this whole process winds up costing you a little money, it'll be well worth it to avoid any potential problems.
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
7y
If this is a Maryland property owned by a husband and wife as tenants by the entirety (both now deceased), a quitclaim deed is not going to help.
You'll need a deed from the Personal Representative of the estate of the spouse who passed away last.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
A Quit Claim deed transfers any ownership from the person signing the deed. I can Quit Claim you the Golden gate bridge and you will then own any ownership I have in the bridge. The house needs to go through probate before the heirs have an legal ownership. Now if you also know who would inherit the property and get them to sign CQ deeds to you, this will buy you time to pay the taxes and save the house. You would have control of the house. To have clear title I believe you need to have the house go through probate. It will have a deed of distribution from probate and those people would have already signed over their interest in the property to you.
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Susan Maneck
Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
7y
Quit claim deeds are risky because you don't know what the liens are against the property, all you've bought is the sellers interest in it. I've been told that it costs 2-3K in Mississippi to get a quit claim deed switched to a genuine title. Unfortunately this is the way properties are often auctioned here.
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Kyle Howard
OP
Rental Property Investor · Cockeysville, MD · Member since 2016 · 48 posts · 9 votes
7y
@John Underwood I actually just got off the phone with the daughter who’s currently living there and there’s a will and some other paperwork with the death certificate that states she has 100% ownership of the real property. The only thing that hasn’t been updated is the deed. With this new information does that change anything that has been said previously on how to go about getting this property?
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
7y
@Kyle Howard If there is a will, it should identify who the decedent chose to be Personal Representative of his/her estate. The identified PR should head down to the Register of Wills/Orphans Court of the county in which the property is located with said Will, open an estate, and have Letters of Administration issued. Then the PR would be free to contract for the sale of the property and be legally bound to sell to the buyer.
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Kyle Howard
OP
Rental Property Investor · Cockeysville, MD · Member since 2016 · 48 posts · 9 votes
7y
@Tom Gimer Thanks she did mention that the paperwork came from the wills/orphans court.
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Victor N.
Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
7y
@Kyle Howard No
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
7y
Originally posted by @Matt K.:

Aren't quit claims more or less worthless as a form of protection in a deal? As in I can quit claim the white house to you and be legal....
Yes and no. A quit claim deed can be worthless. However if the person has a legal right to sell the property then the quit claim deed is valid. A quit claim deed is a weak deed it guarantees nothing.
Its best use is to clear up title. Investors talk about them and use them way to much.
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
7y
Originally posted by @John Underwood:
A Quit Claim deed transfers any ownership from the person signing the deed. I can Quit Claim you the Golden gate bridge and you will then own any ownership I have in the bridge. The house needs to go through probate before the heirs have an legal ownership. Now if you also know who would inherit the property and get them to sign CQ deeds to you, this will buy you time to pay the taxes and save the house. You would have control of the house. To have clear title I believe you need to have the house go through probate. It will have a deed of distribution from probate and those people would have already signed over their interest in the property to you.
This is generally not accurate in the context of quitclaim deeds. You will want to research the doctrine of after-acquired title and how it is applied in your jurisdiction. When a quitclaim (rather than a warranty deed) is used and the grantor only later acquires good title to the property, the quitclaim deed conveyed zero. All stuff like this does is create a big mess for the title company to sort out.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
Originally posted by @Tom Gimer:

Originally posted by @John Underwood:
A Quit Claim deed transfers any ownership from the person signing the deed. I can Quit Claim you the Golden gate bridge and you will then own any ownership I have in the bridge. The house needs to go through probate before the heirs have an legal ownership. Now if you also know who would inherit the property and get them to sign CQ deeds to you, this will buy you time to pay the taxes and save the house. You would have control of the house. To have clear title I believe you need to have the house go through probate. It will have a deed of distribution from probate and those people would have already signed over their interest in the property to you.
This is generally not accurate in the context of quitclaim deeds. You will want to research the doctrine of after-acquired title . When a quitclaim (rather than a warranty deed) is used and the grantor only later acquires good title to the property, the quitclaim deed conveyed zero.
As I said the Quit Claim deed only transfers any actual ownership the person or entity has. If the person has no ownership then it does nothing. It only "Quits Any Claim" that a person has (if they have any).
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Gordon Starr
Rental Property Investor · Dayton, OH · Member since 2015 · 312 posts · 273 votes
7y
I'd back off on this until when/if you can deal with the rightful owner who holds clear title. If the tax man is knocking, it would be safer to let them foreclose then buy at auction. You may still get a quitclaim, but the foreclosure should clear the title of anything except a federal tax lien if they do it right.
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Shawn McKee
Realtor · Savannah, GA · Member since 2017 · 27 posts · 14 votes
7y
@Matt K. I flipped a house from a guy who wanted nothing more than to not be involved in any way anymore i.e. pay the mortgage. I had my lawyer draw a quit claim deed and file it with the courthouse. We paId mortgage in place, rehabbed the house, and sold it for $26K profit!
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Costin I.
Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
7y
@Kyle Howard - Be careful when choosing to use a Quit Claim Deed:
A person receiving a purported real estate interest via a quitclaim deed may receive no legal right to the property whatsoever. If the person seeking to transfer real estate with a quitclaim deed has no legal interest, nothing legally is conveyed. In the absence of title insurance--which is not available for a quitclaim deed--the person receiving the quitclaim deed has no legal recourse because the deed itself states that only the interest of the grantor, if any interest exists, is conveyed.
Whether title insurance terminates by transferring real property depends on the type of policy, and how “insured” is defined in the policy. You take a risk which could result in cancellation of your title insurance and complete loss of your real property without compensation in the event that a title issue regarding your real property arises.
Contact your title insurance company to determine coverage and if your policy does cover transfers , and when or how.
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Maugno M.
Flipper / Landlord · Tyler, TX · Member since 2016 · 255 posts · 126 votes
7y
Yeah if you are going to be using a title company, why even use a Quitclaim deed? Go ahead and slap a warranty deed infront of the seller and get them to sign that.
You'll have recourse if something ever goes bad.
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Tarquinina Ford
Orlando, FL · Member since 2016 · 17 posts · 4 votes
7y
@Kyle Howard hello I am in the same situation in Florida. Please give me a shout out once you receive the legal way to go about it.
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Kyle Howard
OP
Rental Property Investor · Cockeysville, MD · Member since 2016 · 48 posts · 9 votes
7y
@Tarquinina Ford No problem at all you got it
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Richard Lincoln
Lender · Las Vegas, NV · Member since 2015 · 30 posts · 12 votes
7y
Could you let it go to auction and claim the excess proceeds? The properties can get bid up pretty close to market value there sometimes. Faster anyway and no realtors.
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