or is there a better way?
Verb,
Glad to meet you.
Quit Claim deeds are normally used to clean up a title, such as spouse’s divorcing where one of the spouses Quit Claims their interest in the property to the other.
A Quit Claim only tranfers an interst in the property so you could have alot of partners you don’t know about if you use one to take title to a property.
Use a Warranty Deed, General Warranty Deed or other state specific device depending on where you live when taking title to a property.
***A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to you. The guarantee is not limited to the time the grantor owned the property—it extends back to the property’s origins
John $Cash$ Locke
John
But you can use a Quit claim to release your interest if you are selling Correct? Or should you also use the Warranty, Grant, etc. even when selling?
Framer35,
Most title companies will not recognize a Quit Claim as a form of conveyance on a property when selling, unless you are giving up your interest in the property where others are involved in ownership.
You will save yourself alot of problems if you transfer a property you own with a Warranty deed, yes even when selling.
John $Cash$ Locke
Thanks.
My cousin in New york is always telling me to Buy warranty and sell quit claim. Which is how he does it. Different “Guru”. One lawyer, from an unnamed Pre-Paid Legal Plan told me there was no difference between a quit and a Warranty. At least I had learned that much from you.
Unless between relatives, or to clear up clouds on title as John says, in MI quit claims are a huge red flag for fraud.
When I see a quit claim deed in the chain of title, especially when the recording date and sale date are more than 3-5 months apart (normal recording time in this area), I contact the previous owners. Some bozo shysters were actually convincing novice investors that a back dated deed would avoid seasoning issues. Most of the time everything is legit, but you would not believe how many people have thanked me for alerting them that someone was trying to fraudulently sell their house. I also get a lot of “I can’t believe that guy is still trying to sell my house!”
A lesson to never, ever buy a house without title insurance.
kimdrake,
Some of the new investors should take a look at this site http://www.mortgagefraudblog.com/ so when they receive advice on what I consider these under the table deals way of investing, it may just set them straight on what could happen by trying to circumvent the system.
John $Cash$ Locke