Quitclaim Deed tips
You can transfer title to property using a Quitclaim deed. Most states have a standard form quit claim deed you can purchase from online retailers. Although you can fill out quitclaim deeds without the help of a lawyer, there are some significant risks associated with using quitclaim deed forms.
Risk 1. What do you get with a Quitclaim Deed?
Well, you might get nothing. A quitclaim deed can only transfer the interests in the property that the signer actually has. So if the purported owner does not actually own the property, nothing transfers. Make sure to do your due diligence! You may find out that the real estate is subject to judgments, taxes, other creditors, or easements that significantly reduce the value or usability of the property. Using a title company to do research and buying a title insurance policy are important steps to protecting yourself in a real estate transaction.
Risk 2. Legal Description.
Most people do not realize that the U.S. post office changes the addresses associated with properties from time to time. Roads can be renamed and new subdivisions can be built. If the legal description to a piece of land is not properly incorporated into a deed, it may be difficult to prove the details of what you actually bought or sold.
Risk 3. Deeds that were Never Recorded.
Ownership of property is not just about the contents of the deed, but when the deed was properly recorded. You should make sure that the deed the Seller is relying on to prove ownership was properly recorded. If an owner sells several quitclaim or other deeds to people before any of them get recorded, expect litigation. The laws of different States handle this in different ways. Also, remember that a Quitclaim deed only conveys the interest the seller has when she signed it. You should definitely perform your due diligence before accepting any Quitclaim deed.
The Good News:
Quitclaim deeds are not the only deeds that can be used in a real estate transaction. Some other forms of deeds provide different levels of protection to the buyer of real estate. The type of deed used in a real estate transaction, and therefore how much protection a buyer receives or a seller promises to give, should be a point of negotiation in any transaction. The cost of title insurance can be well worth it.
If you are thinking about entering a real estate transaction without a real estate agent, such as an installment sale contract or private purchase agreement, you should contact an attorney for assistant.
Risk 1. What do you get with a Quitclaim Deed?
Well, you might get nothing. A quitclaim deed can only transfer the interests in the property that the signer actually has. So if the purported owner does not actually own the property, nothing transfers. Make sure to do your due diligence! You may find out that the real estate is subject to judgments, taxes, other creditors, or easements that significantly reduce the value or usability of the property. Using a title company to do research and buying a title insurance policy are important steps to protecting yourself in a real estate transaction.
Risk 2. Legal Description.
Most people do not realize that the U.S. post office changes the addresses associated with properties from time to time. Roads can be renamed and new subdivisions can be built. If the legal description to a piece of land is not properly incorporated into a deed, it may be difficult to prove the details of what you actually bought or sold.
Risk 3. Deeds that were Never Recorded.
Ownership of property is not just about the contents of the deed, but when the deed was properly recorded. You should make sure that the deed the Seller is relying on to prove ownership was properly recorded. If an owner sells several quitclaim or other deeds to people before any of them get recorded, expect litigation. The laws of different States handle this in different ways. Also, remember that a Quitclaim deed only conveys the interest the seller has when she signed it. You should definitely perform your due diligence before accepting any Quitclaim deed.
The Good News:
Quitclaim deeds are not the only deeds that can be used in a real estate transaction. Some other forms of deeds provide different levels of protection to the buyer of real estate. The type of deed used in a real estate transaction, and therefore how much protection a buyer receives or a seller promises to give, should be a point of negotiation in any transaction. The cost of title insurance can be well worth it.
If you are thinking about entering a real estate transaction without a real estate agent, such as an installment sale contract or private purchase agreement, you should contact an attorney for assistant.
