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Updated almost 8 years ago,
Quit Claim Deed method of sale
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.