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Updated almost 8 years ago,

User Stats

6
Posts
1
Votes
Leo Popescu
  • Toronto, Ontario
1
Votes |
6
Posts

Quit Claim Deed method of sale

Leo Popescu
  • Toronto, Ontario
Posted

Hello BP!

I came across an interesting condition and figured the best way to understand it is to post it to the pros in here.

I have been in talks with an owner of a lot of land in Lehigh Acres, Florida and we kind of agreed to the deal with one condition on his end. Here was his response:

"I gave this some thought over the weekend and came to the conclusion that I would like to accept your offer.

But there are some things to consider... I have been in touch with a real estate agent and he explained to me, that there is the possibility of making the sale with a "quitclaim deed". This would be my condition for accepting your offer.

If the sale would take place with the "usual" paperwork, I would loose 25% or more for taxes and co. With the quitclaim deed, there would be no further taxes, fees and etc. So I hope you see why this is important to me...

As far as I've understood, the downside with this option for you would be that you do not receive a guarantee that there aren't any loans or pending taxes on the lot. But as I've been told, you can even check for that online in the US (?).

I can give you my word on the fact that all is well with the lot, no loans, no pending taxes or likewise!!"

A few questions:

1. Is it true that he can save on taxes using this method?  If so, why?

2. Can I search title on my own to make sure that I am fully protected?

3. If the seller is not from the United States, is it my responsibility to withhold any taxes?

4. What is my best option if I decide to move forward with the transaction.

Thank you for your time and consideration.

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