Quit claim deed

[Logan Berry]

Does a house with a quit claim deed make is worth less? I have found an off market multi family property I think I could get a good deal but I noticed the quit claim deed when doing research and was wondering what the down sides could be? 

[Kevin Sobilo]

@Logan Berry, a quit claim deed doesn't make something "worthless".

A quit claim deed transfers any rights to a property that one person has to another person but makes NO guarantees about what rights that person had to begin with or even that they had rights. It also doesn't warranty against any title issues that may exist. 

A common use for a quit claim deed is to clear up title issues. For example: 50 years ago a brother and sister sell a property BUT ONLY the broker signs the deed at closing. Now, someone wants to sell that property, BUT its unclear whether the sister who DIDN'T sign that deed many years ago still has rights to the property. If the sister intended to sell it 50 years ago, she may just agree to sign a quit claim deed settling the issue. It isn't clear whether she has rights and she is making no guarantees about anything at all, but she is saying she no longer has rights and that the current owner has any rights she may have had.

If a quit claim deed was used to transfer title in a normal sale one just wants to make sure the chain of title seems clear and that the owner issuing that deed had clear ownership.This is why we have title searches done and pay for title insurance to research these sorts of things and to protect us against the oddball unforeseeable circumstances.

So, I wouldn't say its worthless at all. I would trust the law office I use to research the title and provide the insurance to protect me.

[Logan Berry]

Quote to @Kevin Sobilo: Thank you! I 

@Logan Berry, a quit claim deed doesn't make something "worthless".

A quit claim deed transfers any rights to a property that one person has to another person but makes NO guarantees about what rights that person had to begin with or even that they had rights. It also doesn't warranty against any title issues that may exist. 

A common use for a quit claim deed is to clear up title issues. For example: 50 years ago a brother and sister sell a property BUT ONLY the broker signs the deed at closing. Now, someone wants to sell that property, BUT its unclear whether the sister who DIDN'T sign that deed many years ago still has rights to the property. If the sister intended to sell it 50 years ago, she may just agree to sign a quit claim deed settling the issue. It isn't clear whether she has rights and she is making no guarantees about anything at all, but she is saying she no longer has rights and that the current owner has any rights she may have had.

If a quit claim deed was used to transfer title in a normal sale one just wants to make sure the chain of title seems clear and that the owner issuing that deed had clear ownership.This is why we have title searches done and pay for title insurance to research these sorts of things and to protect us against the oddball unforeseeable circumstances.

So, I wouldn't say its worthless at all. I would trust the law office I use to research the title and provide the insurance to protect me.