How does a quick claim work?

Question

After a fire in my home, my dad had me sign a quick claim so he could start on repairs while insurance figured things out. Now he believes he’s entitled to the insurance payout and profit from the sale of the house. Check is made out to me and mortgage company. I had been paying the mortgage for years and am concerned about my investment.

Laura Bravick · Answer

Thanks for all the insight. My dad found this forum and decided to start calling me names and threatening me. I opted to put the money in a savings account until he is willing to provide receipts and apparently that makes me "lost" and in need of "help" -- So at this point it looks like no one will be receiving anything. Well, besides the house profit that he kept. So $40,000 towards a mortgage paid and I get to keep all of $0. It's so sad that he is willing to terminate his relationship with his child over money. Luckily my mom is a rockstar and she helped me feed the kiddos and pay my rent until I started working again :)

At the end of the day I can't just send him money because he called me names and threatened me. I guess his religion is slightly different then the rest of ours right?!?!

Laura Bravick · Answer

I talked to the adjuster and apparently it’s a law that it has to go to both. And I thought about a lawyer, but that’s an expensive approach to take over $35k. I’d end up paying half to an attorney,

Steve Morris · Answer

"I’m just trying to figure out if the only option is refusing to sign the check, or is there other options?"

On the house, probably not much, but go see a lawyer.  Call the insurance agent and explain the situation.  You did pay premiums and are the named insured so you have some claim.

Sorry, meant religious in the most generic sense.  I do feel for you, I run into these situations more than I like as a RE broker.  Sad when money means more than morality.

Laura Bravick · Answer

My dad is super religious so finding that isn’t going to help. He donates 10% of his income to the church but doesn’t worry about the fact that stealing from me means his grandkids can’t eat...I was backed into a corner and couldn’t afford a place to stay and a house payment while insurance reviewed. I’m just trying to figure out if the only option is refusing to sign the check, or is there other options?

Steve Morris · Answer

You / your father have an interesting relationship :)

I guess just lay out what's going on and hope he finds religion?  He's going to find out sooner/later.

Anyways, the one thing on quitclaim, before you ever do it, is make sure you understand and that there is some consideration (i.e. money) involved.  Being removed from title does have some value and affects marketability of the property.

Laura Bravick · Answer

I’m insured so check is made to myself and mortgage company. Title was transferred to my dad. I am refusing to sign the check at this point as I don’t believe he should get the insurance money and the profit on the sale of the house.

Steve Morris · Answer

Forgot to ask, who is left on title if you did a valid quitclaim?  Also who is the named insured on the policy?

Steve Morris · Answer

Think you mean quit claim.  That means that you're relinquishing your interest in the property itself.  However, if you signed a loan with a lien against the property, that doesn't relieve you of having to pay the loan back.

People usually use quit claims to take clouds off properties.  e.g. Grandma left the property to her 26 children jointly.  1 of them might tell the 25 others, I'll give you $100 each you sign a quitclaim and we record.  If succesful, you'd be the only person on title.

Otherwise, you need 26 people to agree to sell and manifest it at close with 26 separate signatures.