Quit Claim - Posted by V.P.

Posted by Dave T on May 10, 1999 at 21:57:44:

I agree with the dialogue so far, but allow me to interject a thought.

If you receive a quit claim deed and subsequently there is a claim against the title, the seller has no liability in curing the title defect. With a warranty deed, the seller’s title insurance will come to the rescue to cure a title defect.

For this reason, you should only agree to accept the quit claim deed if your title company will issue you owner’s title insurance. If the title search finds no defects in the title and no other encumbrances, then you should feel confident about accepting a quit claim deed provided the title company will accept that when issuing title insurance.

Quit Claim - Posted by V.P.

Posted by V.P. on May 09, 1999 at 11:10:50:

I saw an earlier post about free and clear property being deeded to a buyer in order to obtain financing.Buyer would
give seller a Quit Claim Deed.

Can someone tell me how that works? Thanks.

Re: Quit Claim - Posted by Bill Gatten

Posted by Bill Gatten on May 09, 1999 at 11:19:46:

A quit claim essentially says, "I grant you (i.e., ‘quit my claim to…’) all my title interest in this property…IF I have any.

Bill

Re: Quit Claim - Posted by V.P.

Posted by V.P. on May 09, 1999 at 13:46:50:

Bill Gatten,

I appreciate your response.If you dont mind,I will be a
little more specific in my question.

If a seller deeds his property (free and clear)to someone so that person can obtain financing,how does the Quit Claim protect the sellers’ interest? At what point is the Quit Claim given vs. the deed to the property? Is this simultaneous? I would also assume that both of those would have to be recorded and if so
what would that do to financing in a title search?

Also,I assume the advantage to this type of deal is that it would be easier to get a loan(for some people) on property that they have a clear deed to,rather than
that same person trying to obtain purchase money?

Thanks for the help.

Re: Quit Claim - Posted by Bill Gatten

Posted by Bill Gatten on May 09, 1999 at 14:56:42:

When someone Quitclaims a property they give up their rights in the property.

The Quitclaim deed (“aquittal of potential title interest”) is a “release” of ownership rather than a granting of it, and contains no warrants or covenants concerning title, as compared to, say, a Warranty Deed. In some states, however, a Quitclaim does declare to the grantee that the property is free of all liens and that the grantor guarantees that fact.

All in all, a Quitclaim, when used in place of a Grant Deed or Warranty Deed, is a pretty weak document and wouldn’t (shouldn’t) normally be used in lieu of the other.

Hope this helps.

Bill

Re: Quit Claim - Posted by V.P.

Posted by V.P. on May 09, 1999 at 16:00:09:

Bill,

Yes it does help.Thank you very much!

V.P.