I was hoping to get some good information regarding taking title on a subject to deal.
I was first told that it is best to take over title using a land trust naming my company as Trustee. They having seller assign beneficiary rights to me. Also have the seller sign a warranty deed, have it recorded at the county office.
Then i got some information about using a quitclaim deed to transfer ownership.
Im not sure which one to use in this situation. Quitclaim seems to the the easiest, with less paperwork, etc. If anyone has experience with these deeds on a subject to please let me know.
The information would really help.
Use a quit claim and forget the land trust. It complicates matters with no real benefit.
Using a Quit Claim Deed only transfers and interest in the property, so their could be more than one party the seller transfers and interest to. When this really comes into play is when you go to deed the property to your buyer as the majority of the time if not all the time the Title Company will not give clear title with just a Quit Claim Deed.
A Warranty Deed is your best bet as it transfers all interest from the seller in the property. Then record the Warranty Deed at your county office.
Also use an Affidavit, signed by the Seller stating basically, that the Contract entered into between you and the seller shows all the terms of the deal and their are no other conditions.
John $Cash$ Locke
Besides the warranty deed, what other docs do I need in such a
When taking a property over “subject to”, I also use the following:
Have the seller sign:
a Limited power of attorney, for all things related to the property.
A right to release information, so you can talk to the lender and Insurance company on the seller’s behalf.
a CYA letter with regard to due on sale. I also throw in anything about the property that I don’t feel comfortable about in case I need to pull out later, such as “seller warrants that the house has no code violations” i am not sure how well this would hold up, but it certainly gives me negotiating power.
I have also given a letter of intent to the sellers if they don’t feel comfortable about the fact that we aren’t using an offer to purchase.
The letter of intent has no real legal power, but loosely outlines what I plan to do with the property.