"Subject to" warranty deeds

[Aurelia Spencer]

Has anyone gone with an online document service to get a warranty deed for a "subject to" deal? If so, what's your opinion?

[Kerry Baird]

Yes, I had a guru variety deed.  Called a traveling notary for a kitchen table closing.  But I didn't want to make a mistake on it, and ended up using a title company to prepare, notarize and record. It went really well that way. 

Your local lawyer or title agency can (and should!) close your deals.  Here's why:  they can answer either of your questions, you can get title insurance, the deed will be filled in correctly, the seller feels as if this is a "real" closing.

@Brent Coombs, the deed conveys ownership while the "Subject to the existing financing" wording relates to the lien/s.  

When I first started, I thought that I needed a "Quick Claim Deed" as that word is commonly misspelled.  I am adding an explanation from rocketlawyer dot com as to why you don't want a "Quit Claim Deed."  

So to recap, you DO want to transfer title to yourself or your entity, because you DO want ownership of the property. You DON'T want to get a new loan, which is why you are going sub2.  You DO want to pay off the old one once you are done rehabbing, because you DON'T want harm to come to your seller's good name and credit. Refi or sell on.

What's a Warranty Deed?

A Warranty Deed provides a number of guarantees from the seller to the buyer. It includes a full description of the property and asserts that the seller owns and can transfer full and clear title of the property. It also certifies that the property is free of any easements, liens, or other encumbrances on ownership.

What's a Quit Claim Deed?

Quit Claim Deeds are used when the transfer of ownership in the property does not occur as the result of a traditional sale. For instance, Quit Claim Deeds are common when real estate is conveyed through a Will or as a gift, when property is placed in a trust, or to distribute property as part of a divorce settlement. They're also common when someone wants to sell property but they're not entirely certain what the property boundaries are or whether any other claims can be made on the property. Quit claim Deeds contain no guarantees of any kind, which means that you could buy a property, receive a Quit Claim Deed, and later find out that the person you bought it from wasn't legally able to sell you the property at all.

When it comes to a Warranty Deed vs. a Quit Claim Deed, the central difference lies in the guarantees. Under a warranty deed, if it turns out that the property is not what the seller promised or there's an uncleared lien or other block to the title, the buyer can sue the seller and recover damages. But if the property was conveyed through a Quit Claim Deed, the buyer has no remedies. For this reason, a Warranty Deed should generally be viewed as more valuable than a Quit Claim Deed, though there are some special circumstances where that is not the case.