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Updated about 1 year ago on . Most recent reply

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Erin Wamsley
  • Investor
  • South Carolina
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Why use quit claim instead of warranty deed to transfer to LLC?

Erin Wamsley
  • Investor
  • South Carolina
Posted

I am looking to transfer title of a few rental properties to an LLC. It seems like investors most commonly use a quit claim deed for this. Why? I would have minimal concern over using a quit claim deed since I know the titles are clear... but why not just do a warranty deed anyways? What is the drawback of using a warranty deed? In my case, in South Carolina, it seems like the cost would be the same, and this is not especially time-sensitive.

So what is the advantage of doing quit claim vs. warranty deed?

I feel like I am missing something... please enlighten me!

Erin

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Tom Gimer
  • DMV
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Tom Gimer
  • DMV
Replied
Quote from @Erin Wamsley:
Quote from @John Underwood:

QC deeds are easier and I just type them up myself. 

Using one doesn't diminish the underlying GW deed.


I guess my question is: What exactly makes a QC deed easier? Amount of paperwork?/Need for an attorney?/Not having to document any title research?

Erin


Nothing.

A QCD will include all other legal requirements for a deed, but without any warranty. If it doesn’t, it’s defective.

To me when I see a quitclaim deed in the chain it just makes me curious about the grantor’s title… also whether the instrument was properly prepared and is valid. That said in some jurisdictions they use QCDs for all transfers. 

  • Tom Gimer
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