A quitclaim deed is a legal instrument by which the owner of a piece of real property, called the grantor (seller), transfers his interest to a recipient, called the grantee (buyer). The owner/grantor terminates (“quits&rdquo his right and claim to the property, thereby allowing claim to transfer to the recipient/grantee.
A quitclaim deed contains no title covenant and thus, offers the grantee no warranty as to the status of the property title; the grantee is entitled only to whatever interest the grantor actually possesses at the time the transfer occurs. The grantor does not guarantee that he actually owns the property at the time of the transfer, or if he does own it, that the title is free and clear. It is therefore possible for a grantee to receive no actual interest, and – because a quitclaim deed offers no warranty – have no legal recourse to recover their losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred.
A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer). The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins.
I've had clients purchase land and homes via a QCD in what I refer to as a kitchen table transfer and almost everyone of the transfers had some issue. Even I could give you a QCD to the property you are asking about. The language in a QCD essentially states that "I'm conveying WHATEVER interest I may own" if I own no interest in the property then you received NOTHING.
A great little anecdote about one of these kitchen table transfers with a QCD: individual BUYER buys house (very cheap, $6,000.00), from SELLER pays for house with certified funds, and over the course of five (5) months spends $20,000.00 fixing home up to sell. Home sells, at closing title company finds two tax liens from SELLER. Only way house closes is for BUYER to pay SELLER's tax liens totaling over five figures. Any recourse NO.
If you are paying $5,000 an acre a $1,000 an acre or even $5.00 an acre contact a title company in the county where the property resides, pay for the abstract to be brought up and pay for the title insurance and closing costs. The title company will issue a Warranty Deed for the SELLER to execute and will guarantee title. If the SELLER refuses to do so then walk away. There's a reason some sellers will only issue a QCD and that's because they have liens, judgments and tax issues they would just as soon forget about.
QCD's are generally only used for transferring property in divorce cases. Where one party transfer's their interest from a Joint Tenancy with Right of Survivorship deed (husband / wife) to a Fee Simple Interest (single person).
If you still choose to acquire the property via QCD, then you deserve everything you've bargained for.
LRP
A quitclaim deed contains no title covenant and thus, offers the grantee no warranty as to the status of the property title; the grantee is entitled only to whatever interest the grantor actually possesses at the time the transfer occurs. The grantor does not guarantee that he actually owns the property at the time of the transfer, or if he does own it, that the title is free and clear. It is therefore possible for a grantee to receive no actual interest, and – because a quitclaim deed offers no warranty – have no legal recourse to recover their losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred.
A general warranty deed is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer). The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins.
I've had clients purchase land and homes via a QCD in what I refer to as a kitchen table transfer and almost everyone of the transfers had some issue. Even I could give you a QCD to the property you are asking about. The language in a QCD essentially states that "I'm conveying WHATEVER interest I may own" if I own no interest in the property then you received NOTHING.
A great little anecdote about one of these kitchen table transfers with a QCD: individual BUYER buys house (very cheap, $6,000.00), from SELLER pays for house with certified funds, and over the course of five (5) months spends $20,000.00 fixing home up to sell. Home sells, at closing title company finds two tax liens from SELLER. Only way house closes is for BUYER to pay SELLER's tax liens totaling over five figures. Any recourse NO.
If you are paying $5,000 an acre a $1,000 an acre or even $5.00 an acre contact a title company in the county where the property resides, pay for the abstract to be brought up and pay for the title insurance and closing costs. The title company will issue a Warranty Deed for the SELLER to execute and will guarantee title. If the SELLER refuses to do so then walk away. There's a reason some sellers will only issue a QCD and that's because they have liens, judgments and tax issues they would just as soon forget about.
QCD's are generally only used for transferring property in divorce cases. Where one party transfer's their interest from a Joint Tenancy with Right of Survivorship deed (husband / wife) to a Fee Simple Interest (single person).
If you still choose to acquire the property via QCD, then you deserve everything you've bargained for.
LRP