I need to know if a seller quit claims me the property, Is that sufficient for me to sell the property? Will i have the rights to the property to do with what i wish? I will be selling the lot once i have them quit claimed to me.
My first time selling a property.
Quit claim deed is perfectly legal. A quit claim deed transfers the grantor’s interest, if any, to the grantee.
All is fine and good if the grantor actually owns the property. The problem is that a quit claim deed only transfers whatever interest the grantee has, even if that is nothing. The deed is perfectly valid, but you may not have legal title to anything if you accept a quit claim deed.
Best to check with a title company. If they will insure title for you on a quit claim deed, then go ahead. If not, then get a warranty deed.
I aree with Dave T except I wouldn’t trust a quit claim at all. I would suggest getting a warranty or grant deed depending on where you live. Like he said the quit claim only transfers the quit claimer’s rights and it has cause numerous problems due to this.
Interesting. I was under the impression that a quit claim would be sufficient. The part i dont understand is WHAT the quit claim is doing and how it could not work? Please help me understand what its doing exactly, and how it can cause me greif? I just want to be better equipped for my next one.
Im in California.
You want to buy some piece of property. Mr. X offers to give you the deed to the house he is living in at a fantastic price, but only if you pay cash. He needs the cash right away because he is moving out of state to take a new job in three days, and can’t afford to make two house payments. His urgency to move is why you are getting a great deal.
Mr. X gives you a quit claim deed and you give him your money.
You go about your business renovating the house when someone shows up and wants to know what you are doing in their house. You claim to be the owner and even offer the quit claim deed as proof of ownership.
Authorities are called, you are charged with trespassing and taken away. When the dust settles, turns out that Mr. X was just a tenant in the house you “bought”. The guy that showed up at the door is the legal owner. Mr. X was not the owner and had no ownership interest in the house he quit claimed to you.
Because you paid all cash, and were under the gun to close the deal, you did not research title. You did not ensure that Mr. X was the legal owner of the property. You did not do a proper title search and did not purchase title insurance. You were scammed and will probably never recover any of the money you paid.
Quit claim deeds have their use. You find them used most often in a divorce situation where one spouse uses a quit claim to relinquish their interest in the marital home to the other spouse.
Nice info and good example. Now can you tell me how a warranty deed plays out differently? Now i have a contact with a local title co and as part of a service they will pull up what they have on file for me to let me know what attachments are on the title. Is this sufficient for me and my endeavers? Or does this not show everything?
Here’s the difference between a quit claim and a warranty deed:
Warranty Deed conveys the property and insures that the seller is selling the property free and clear of all incumberances. This usually involves a title search and title insurance. (Title insurance protects you in the event that the title searcher missed anything.)
A quit claim deed conveys the property “as is”. By “as is” it says property owner “A” conveys title to property owner “B” - any liens or encumberances go with the property.
I beleive that a quit claim deed should be used only with “friends and family” such as a husband quit claiming a property to a wife, or an individual quit claiming a property to a trust or a business entity.
If, for example, a husband quit claims the property to the wife, and there is a materialman’s lein on the property because a plumber came and fixed a leaky faucet in the bathroom and didn’t get paid. Well, if the wife lived in the home, she benefited from the action which preceded the materialman’s lien and might accept the responsibility for the lien.
By contrast, if you are purchasing a home from a stranger, and say, the stranger had some past unpaid medical bills which resulted in a lien on his property, by accepting a quit claim deed, you are inheriting his medical bills - something I am sure you are not interested in accepting!
Here’s another scenario. 2 people own a piece of property. You buy the property from one of them and get a quit claim. If there are no other problems you now own the property along with the other owner who never deeded his interest to you.
In California get a Grant Deed and title insurance and you can quit worrying about a quit claim.
So in NJ can I just get a quit claim deed and title insurance?
I’m also a student here. Thanks