Quitclaim signed by former owner AFTER tax deed?

Question

Hello,I am in Georgia where in a tax sale you get a tax deed. You then need to follow processes to first, foreclosure on the right of redemption, and second, do a judicial process to get a quitclaim deed. (which is insurable).My question is. If I can get the former owner to sign a quitclaim deed, I should be good. right?I can record that deed and that will be the end of it. Presumably, I can get title insurance as the owner signed and the ownership chain was not interrupted. Or, is it that the owner can't sign a quitclaim since he is not longer the owner !?Any input on this will be appreciated. JET

John Underwood · Answer

Ed,You are correct in that a quit claim deed from the previous owner/s give you clear title to the property.They are not deeding something to you that they no longer owner.They are just providing proof that that are quitting any claim to the property which in effect removes the cloud from the title.This is what several lawyers have told me.John

Ned Carey · Answer

I'll add to what John said. If the previous owner did not have clear title then you are getting any clouds he or she had on their title. If there was a mortgage before them Quit Claiming to you doesn't affect the mortgage holders rights. If they had judgments against them, they automatically attache to any title property. Those judgements will come with the quit claim deed. It certainly can't hurt. I might be a big time/ money saver or maybe not depending on the exact situation.I am not an attorney and certainly don't know GA law. The above is my laypersons understanding of the law. See a good real estate attorney in your state.

John M. · Answer

A Quitclaim Deed may deed everything or nothing. If the Quitclaim issuer has nothing you get nothing, if the issuer has some interest in the property then that would be transferred. The nature of a Quitclaim deed makes no assurance that the issuer has any interest in the property. A Tax Deed on the other hand does transfer a real interest in property. However once the Tax Deed is issued all other claims against the property (except Federal Tax Liens as I recall) are extinguished. So after the Tax Deed transfer the previous owner has lost all ownership in the property. The previous owner has nothing to transfer or claim against the property. So while it is legal to get a Quitclaim Deed in this situation it is guaranteed you will get nothing. There may be some variations from California to Georgia Tax Deed laws. For clarity consider a Warranty Deed -- this kind of deed warrants that there is something being transferred, if nothing is transferred with a Warranty Deed then fraud has been committed and is punishable under the law.

Joe Mclain · Answer

Goto this site and check if there are liens, mortgages, on the property. You may want to see who has an interest in the property besides you. That may tell you if the QCD is a process worth pursuing. https://www.gsccca.org/searchBest of luck

Rick H. · Answer

Lots of inaccuracies posted in thid thread. Proceed with caution.I'm good with advice from @Ned CareyJeff Beard.

Wayne Brooks · Answer

@Ed Mayo I was missing the connect where You were the one buying the tax deed originally, as opposed to another party. I thought you were looking to redeem after you got the former owner's right of redemption. I'll catch up eventually.

Wayne Brooks · Answer

Am I missing something here? You are getting a QCD from the Former Owner. You've still got to go pay all those back taxes, and inherit any other existing liens, Assuming no lien holder redeems?

Jeff B. · Answer

"second, do a judicial process to get a quitclaim deed. (which is insurable)."IMO you do not have a clear title and the insurability is is doubt.

Rick H. · Answer

It may be easier to think of a Quit Claim Deed as a document which releases any interest which the signer may have. The point for an insurer is that the foreclosed upon owner has voluntarily eliminated making any future claim such that title insurer deems is minimal risk and are happy to take your money with slim to no chance of having to spend money defending your title against later claims. Like a banker, an insurance guy is someone who sells you an umbrella in a heatwave but wants it back when it rains.

Ed Tamayo · Answer

The QCD would be after the county has done the tax sale and signed me the tax deed so "all those back taxes" were paid at the time of the tax sale. The only benefit is that the former owner is actually giving away their right of redemption. This only makes sense if there are no other liens as I can't see a bank or the IRS signing a QCD.