Should I be suspcious?
I made a verbal offer on a property a few days ago. The seller agreed to the price, but wants to close using a quit claim deed. I asked for a warranty deed, but he says that quit claim will save on closing costs. which is true but should I be suspcious of this guy? I know that there is a little over 3k in taxes owed and the property is in his "brothers" name, but do you all think that there is something else going on?
You need a title search at least. It should cost you less than $100
Once that is back, ask the title company who performed it who all needs to sign the deed to you. Make sure all of those people and you are in front of a notary together when the deed is signed.
Yes, any deal that you aren't willing to pay title costs on aren't worth doing. If he won't agree to you paying the title costs, walk...actually run.
while title searches are useful and give you an idea of whats going on, they mean nothing without title insurance.
If you still want to do the deal on a quit claim i'll be happy to sell you the same property for half the cost.
#3 Real Estate Deal Analysis & Advice Contributor
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- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
Quit claims have few legitimate uses. One is in a situation where there appear to be multiple owners, such as in an inheritance situation. The quit claim deeds can be used to resolve ownership. Banks sometimes sell bulk REO with quit claims. But in that case it means they have not cleaned up the title.
It will save the seller on closing costs because he won't buy title insurance. If there is a title problem, and there probably is, you'll be stuck with the problem. Warranty deed or no deal.
Thanks for all of the feed back. If a deal seems to good to be true, then it really must be to good to be true. I even got the guy to include all of the materials needed to complete the job that are already at the property. It all seemed a little to easy! I will take your advice. Warranty deed or no deal!
NEVER BUY From SELLER With QUIT CLAIM....
You need to get familiar with the types of deeds offered in your state and what they mean.
In my state of GA we have:
General warranty deed-means the seller warrants title all the way back
Special or Limited Warranty Deed-usually banks gives this out and only warranty for the time they owned the property.
Quit claim deed- whatever interest I have in the property I give to you.
We have others deeds as well but these are the most common.
Would not do a deal on a quit claim.Quit claims are many times used it a property has equity and one person owes money to someone.They simply quitclaim their interest away so the property(asset) cannot be leined.
If you are also quit claiming interest from one corp over to the next where ownership is the same etc. All of these uses are of internal uses for quit claims.
- Joel Owens
- Podcast Guest on Show #47
I have sold a property with a quit claim before. We showed the buyer our title insurance, and paperwork from our full closing from when we had purchased.
He paid to record the deed at the courthouse, and now he owns the property.
It can work.