How to properly transfer title?

[Sergey Tkachev]

So I hope I get this in the right forum - I have a friend who is looking to take over payments from a seller on a SFR and take title (seller just wants to effectively give the house away as long as the new owner takes over the payments). The outstanding loan amount is $160k and the property is worth more than that (this info is not really pertinent to the question).

The question is: what is the best/safest way to do the transfer without spending more money than necessary?  Is a quit claim deed the way to go?  Would this be done via a title company, escrow company?  Is there a ballpark fee that is reasonable for this service?  Would it make sense to purchase title insurance?  Are any specific disclosures needed in the contract from a liability stand point since he is taking over payments?

Those are the questions I can think of.  His plan is to refinance the property within a couple months (the equity is there and the current rate on the loan is 7% so a refinance would make sense).  

Another option is to finance it at the time of transfer/purchase with a purchase loan (to payoff the existing mortgage).  Do the rates for purchase loans and refinance loans differ?  and is it harder to refinance than get a purchase loan?  If he gets a purchase loan, will that complicate the purchase process more (i.e. make it more expensive) than if a simple title transfer is done?

I apologize for so many questions, hopefully I don't confuse you guys too much :)