Posted by Ben in Ohio on April 26, 2000 at 06:54:15:
That is a good question. I must admit it took me a few deals before I understood a “Quit Claim” deed. Basically, it is a written statement in the form of a deed that says (and therby conveys) that whatever interest I, the grantor (the giver of the deed) has in the described property shall be conveyed to you, the grantee (the receiver of the deed). The key here is ‘what am I actually giving you?’ It may be a deed that has no value whatsoever, it could be worthless paper. So you the grantee (receiver) might say–“Now wait a second, what guarantee do I have that you (the grantee) are actully authorized to convey this property?” And this is where you would order a title search and order a WARRANTY deed. The warranty deed is an insurance policy issued by one of many title insurance companies that will place a “guarantee” that you will receive the property free and clear of any encumbrances. I might add the guarantee in the policy has limitations and will very from policy to policy and I really don’t know a whole bunch on that end of the business. However, anytime you buy property ALWAYS do a title search.
Also, one thing that helped me tremendously was to spend some time at the Recorders office asking questions to the clerks about ‘the process’ of property transfer. It gave me a visual presentation of how the deed, conveyance fees, property taxes, and all the rest of this nebulous activity is handled. And, it helped me to understand how the Title companies and escrow agents (how it’s done in Ohio) charge the fees for the work they do.
Am I correct in assuming, that a “Quit-Claim” Deed will give me the deed to a property, as long as I make monthly payments to the bank? This property is nearly 4 mos behind in payments…if they “Quit Claim” it to me, and I make the payments and then re-finance, am I the “owner”?
Quit Claim in Pa, Ben is mostly right… - Posted by David Krulac
Posted by David Krulac on April 26, 2000 at 07:30:31:
a title search is always a good idea.
title insurance may be a worthwhile investment. In Pa. the rates are covered by law and start at $30,000 for about $390 premium.
a “Quit Claim” deed conveys to the buyer (grantee)
WHATEVER interest the seller (grantor) has. If the seller is the sole owner of the property and received the property with a general warranty deed, then his “Quit Claim” deed has the same warranty that he received when he bought. In other words there is NO need for a subsequent warranty deed from the same seller, as you already got his warranty. The “Quit Claim” deed conveys WHATEVER the seller has.
If on the other hand the seller has only a partial interest, or some other less than full interest in the property then you may need deeds from other parties, either “Quit Claim” or warranty or may need a “Quiet Title Action” to extinquish any other interest.
In Pa. married people (to each other) provided they are not divorced (separated doesn’t count) and neither is deceased convey ABSOLUTELY NO interest by a single party “Quit Claim” deed without a corresponding deed from the other marital partner!
I’m not an attorney and don’t play one on TV, but have paid enough attorney bills to know a little.