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sorox · Joined: 16 Jun 2011 Posts: 2 1.34 Dollars($)

If the Grantor placed any money in the property before the Quit Claim Deed ( such as the down payment, or improvements they paid for) are they releasing their claim to any of those money's when signing a quit claim deed over to the grantee? or can they file legal action to make the grantee pay them back?

gmakerley · Posted: Thu Jun 16, 2011 11:47 am Post subject:

That seems preposterous to me, crnifco.

A grantor on a quit claim deed transfers all interest in the property - "interest" being ownership. That doesn't speak to the money that may or may not have been involved in the least.

As a typical situation, however; when money is involved, that would be something that gets ironed out separate from the transfer of ownership interest. For example, in a divorce situation, there's usually a financial settlement that takes place separate from the real estate settlement.

In my opinion (not a legal opinion, of course), if a grantor provides a grantee with a quit claim deed, that's the end of things, and no future compensation for money already spent would be taking place.

Posted: Thu Jun 16, 2011 12:19 pm Post subject:

I appreciate your response to this whole heartedly. To be clear on the situation though the two people involved were not married only engaged. One was Gifted money to pay for the downpayment of the home. When they split up the house was offered to the party in which the down payment was gifted. That party turned down the house and so the other party stayed at the house as to not pay back the first time home buyer tax credit of $8,000. Now an attorney is writing them saying that they were unjustfully enriched by that downpayment and must repay it to the party the party it was gifted to. But that person has already signed a notorized quitclaim deedand the mortgage was refinanced to the name of the current home owner only. Is that person truly liable to repay the downpayment or is this legal jargon to confuse the current homeowner into repaying?

gmakerley · Posted: Thu Jun 16, 2011 12:28 pm Post subject:

Too many parties for me in that post - I forgot my party hat.

But to get to the meat of it...you noted that "an attorney" claims that the $8000 gift must be repaid due to unjust enrichment. It would seem that the problem had been resolved within the two parties in the first place and that the "loser" of the funds is now suffering from remorse.

A lawyer on the other side might write a letter saying "back off, you have no valid claim."

I think that's probably the best solution - to let two lawyers battle back and forth (if there's money to pay them). Otherwise, if there cannot be a legal settlement of some sort on this claim, it'd make more sense to simply let a lawsuit begin, if that's what is being threatened, and to do one's best to defend oneself in court, to eliminate the possibility of paying back the funds.

Now, what I said here made sense to me, but I know it was in a roundabout fashion. I hope it makes sense to you, too.

Posted: Thu Jun 16, 2011 2:20 pm Post subject:

Thanks Again, I believe that the two lawyers will be battling things out from here on out, but it is always nice to get an outside, unbiased opinion (even if not a legal opinion) on the issue. I also would believe that the quitclaim deed would put an end to all matters involving the property but I guess that is for the law to decide on this one. Thanks again for your insight and my appologies for the confusing wording to describe a confusing situation!

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What exactly is the Grantor of a QCD giving up claim to by signing a Quit Claim Deed?

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