Hi I am a newbie but a Quick Claim Deed contains no title covenant and thus offers the grantee no warranty as to the status of the property title; the grantee is entitled only to whatever interest the grantor actually possesses at the time the transfer occurs.This means that the grantor does not guarantee that he or she actually owns any interest in the property at the time of the transfer, or if he or she does own an interest, that the title is free and clear. It is, therefore, possible for a grantee to receive no actual interest, and – because a quitclaim deed offers no warranty – have no legal recourse to recover any losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred. In contrast, other deeds often used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain warranties from the grantor to the grantee that the title is clear or that the grantor has not placed any emcumbrance against the title.
Execution of a quitclaim deed is relatively simple, and requires little more than both parties signing the deed and, if required in the state where it is executed, having the deed notarized, acknowledged before a notary or with a jurat signed before a notary. A jurat, also known as a verification upon oath or affirmation, is a form of notarization in which the affiant appears before a notary, swears to the truth of the contents of the document, and signs the document in front of the notary.
Originally posted by @Paul Fournier :
I’m A wholesaler in Florida. I recently came across a deal where the seller wanted to do a “quit claim deed”. I’ve herd that this is a red flag. I also don’t understand how it comes into play when closing on a property.
Could someone give me some pros and cons for quit claim deeds in a wholesale situation? What should I look out for? why would the original owner give me this instead of a normal deed when hes clearly listed as the owner of the property on local .gov sites? What’s the closing process like with a quit claim deed?
He’s either going through a divorce or has just completed one. Don’t know if that matters or not.
Thanks in advance BP!🤘
Can you say "oh my my, looking for trouble?"
A Quit Claim Deed invalidates a lot of Title Insurance policies. You have no idea who else is entitled to the property. And if it is a divorce, you need a Warranty Deed from both parties in most cases. If you wholesale a property with faulty title, expect to buy back the property or be sued. The end. Oh, and there is a LOT about wholesaling being illegal in Florida. Do a search in the box above before you go any further or do regale us of the rabbit hole you are about to explore. Happy wholesaling.
I have bought a few properties by QCD in FL, usually sub2 some other existing liens, but I knew exactly what I was getting into and the price reflected that. Sold them all by regular Warranty Deed, with title insurance. Simple, get a title search and commitment from a title co., they will tell you what you need for clear title.