Posted by TC on November 25, 1999 at 10:31:20:
Happy turkey day!You and Bill Bronchick have both responded today.I guess you can tell the Hardcore REIer’s by the ones that never stop,even on holidays.
THANKS GUYS!
TC
Warranty or Quitclaim Deed? - Posted by TC
Posted by TC on November 25, 1999 at 10:10:45:
Thanks to anyone who cares to respond to this!I have a homeowner that has a house that needs 3-5k in the normal repairs (paint,carpet,flooring,a little sheetrock work ect…).The property has a nonqualifing FHA mortgage with a principle of about 77k and the comps are high 80’s to low 100’s.They(husband and wife) want to walk away from it.The mortgage is current.Should I do a warranty deed or a quitclaim deed?
Thanks!
TC
Re: Warranty or Quitclaim Deed? - Posted by Rob FL
Posted by Rob FL on November 25, 1999 at 10:23:20:
ALWAYS try to get a warranty deed. People always make a such a big deal about this. A warranty deed, “warrants” that the title to the property is good. If for any reason there is a problem with the original deed or a prior title problem, the warranty deed would require the seller to correct the problem (whether you can make them stick to their warranties is another thing, however it would certainly help to have a warranty deed if you had to bring a quiet title suit). Warranty deeds also automatically transfer any “after-acquired title” that the prior owner may receive after the warranty deed gets recorded.
A quit-claim deed is worth about as much as the paper it is written on. If the owner has title, you get it. If they don’t have it, you don’t. In other words, anyone in the world could legally give you a quit-claim deed to the Brooklyn Bridge. Any title problems are yours to keep (hopefully you will get title insurance anyway). Any after acquired-title would require you to get another deed from the prior owners. Quit-claim deeds are for sellers who do understand real estate titles and for buyers who do NOT understand real estate titles.