Newbie looking for advice on Quit Deed Claim

[Carl Robinson]

Hello BP newbie loooking for advice on the best way to acquire my first rental property from a relative. i was thinking about doing a quit deed claim. I am looking for the easiest fastest way without having to deal with lawyers title companies and even closing cost if possible. is quit deed claim the best way or should I be looking into other options? any help and advice would be appreciated thanks in advance.

[James C.]

Carl,

Two rules when buying property. 1) Always have a title search done. 2) If you are thinking about  buying without doing a title search, see rule 1.

A title search usually runs less than $1000. I can get them run for less than $300 where I am.  

If you are going to spend more than $1000 on real estate, then you should have a title search done. If you don't you are putting your entire investment at risk.

If you don't do a title search,  you won't know if the property has been transferred, is foreclosed on, if there are back taxes or assessments.  All of these can cost lots of money to fix.  You could loose your entire investment.  No, I'm not being dramatic,  it happens more often than you think with folks trying to shortcut the process, or save money. 

If banks, mortgage investors and everyone else in the real estate world wants to know before they buy or lend if a title is good,  you should too. 

BTW,  I would not only get a title search done,  but I would buy the title insurance as well. Oh.. and specify an "insurable quitclaim (or warranty) deed"on your contract. Cheap piece of mind.

Hope that helps. 

Good luck, 

Jim