selling a property on a quit claim deed

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kbinrc

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Post Posted: Tue Dec 30, 2008 2:26 pm    Post subject: selling a property on a quit claim deed
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We recently obtained property through the local tax auction in our community in NY. We paid for the property outright, and received a quit claim deed from the county naming us as the owners. Do we need to do anything legally to sell this property as we hope to in the spring? Can it be sold on a quit claim deed? Does the quit claim need to be changed to a different type of title or deed? As I said, there is no loan involved, it is ours on a quit claim deed from the county, but we'd like to sell it soon and aren't sure how it works with a quit claim deed.
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Icon Mini Profile gmakerley
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Post Posted: Tue Dec 30, 2008 2:32 pm    Post subject:
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kbinrc i hope you got title insurance when you purchased this property. if not, there may be claims against it that you're not aware of. that will affect you in trying to sell, also; as any sensible new buyer will ask for a warranty deed from you to ensure themselves against losses in the future (and of course they'll have title work done to protect against the unknown as well).

a quit claim deed only transfers whatever the grantor owns (which could be nothing or could be all).

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kbinrc

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Post Posted: Tue Dec 30, 2008 2:47 pm    Post subject: Selling on a quit claim
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Hi, the county assured us all leins were wiped clear when they assumed ownership, it is in the paperwork I have. I think only IRS trumped the county, was basically what it said. However, I would like to provide a warrenty deed to new owner, how do I go about obtaining one...is that something a real estate lawyer can get for me, as well as doing a title search for the new owner? By the way, we haven't got a ton of money into this, it was our first foray into the buy for back taxes game, though your answer did stop my heart for a minute.
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Post Posted: Tue Dec 30, 2008 2:51 pm    Post subject:
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well, i'm certainly glad your heart re-started. the last thing i'd want on my conscience is for one of my posts to cause something like heart failure.

you seem to be on the right track - in selling, i have to assume that you'll find a sensible buyer. therefore, your buyer will certainly have a title search done for his/her own edification and protection. that'll benefit you, too; but i suggest you go retain a lawyer of your own, as your buyer's lawyer wouldn't have any business representing you as well.

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kbinrc

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Post Posted: Tue Dec 30, 2008 3:06 pm    Post subject: selling our quit claim
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We totally plan on having our own real estate lawyer represent us, in fact we have one now working on a simple seperate issue (adding my name to our main residence's deed - currently only in hubby's name - no mortgage involved)but seems to be taking him a LONGGG time (since Sept.) to do anything, so we may seek out a highly recommended fellow in the city near us, if he isn't too expensive, instead of using Mr. Pokey in our small town. We do want to do everything right. Thank you for your speedy reply Smile, and yes, I do have a heart rate again.
John Ski

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Post Posted: Tue Dec 30, 2008 3:59 pm    Post subject: quit claim deed
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Your lawer will write your deed and have it recorded. He should do this now. I agree with the earlier posts re: title isurance ---never buy property without it.
When you sell, you will basically 'endorse' your recorded deed to the new owner, and then the closing authority (we use title companies here in MD), (buyer's att'y?) will write and record a new deed and a trust instrument if there is a mortgage involved.

Ski
RE Agent, Glen Burnie, MD
"ski@mris.com"

[Link deactivated as per forum rules. Thanks.]
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Post Posted: Tue Dec 30, 2008 5:05 pm    Post subject: Quit Claim Deed
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I completely agree with prior posts re: title insurance....don't get home without it!

As for the deed...It is simply a written testament to ownership, based on the previous deed and legally file transfer (you know, signed by former owner), and filed (registered) with the local tax authority (county?).

The buyer's lawer (here we use title companies for most purchases) will in all probability prepare and file the new deed.

There are several types of deed, differing in how much warranty is provided against defects in the title trail. A quit-claim deed is simply a way to dis-avow any legal claim to the property. The next one is usually a 'special warranty deed', typically used by banks and others selling property which they got thru a process of duress (foreclosure, for example), and are usually limited to the duration the institution had title.
A warrany deed garantees quiet enjoyment to the purchaser, and you 'garantee' to defend his title against all claims. This is what title insurance is for.

BTW, always get the enhanced title policy, as it will pay you for value appreciation in the event of a sucessful challenge, where as a standard policy will cover only the purchase amount.

John Sikorski
RealtorĀ®, Glen Burnie, MD
"ski@mris.com"

[Link deactivated as per forum rules. Thanks.]
Icon Mini Profile smithsussane
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Post Posted: Tue Dec 30, 2008 10:31 pm    Post subject:
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Hi kbinrc!

Welcome to forums!

I don't think adding a name to the deed should take such a long time. Though it's always recommended that you take the help of an attorney to draft a deed and get it recorded, you can even do it yourself. You can fill out the quitclaim deed and then get it notarized and recorded at the county recorder's office. Sample quitclaim deeds are available online. It's better if you can change your lawyer. As as far as selling the property is concerned, I agree that a warranty deed will be a better option for you rather than a quitclaim deed.

Sussane
Icon Mini Profile BrianDelaCruz
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Post Posted: Wed Dec 31, 2008 3:25 am    Post subject:
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Hi John Sikorski,

Welcome to MortgageFit Community.

I have gone through your post and found it to be informative. You seem to be an experienced person and you have mentioned that you are a realtor. This community also has a lot of experienced lenders and mortgage experts. Why don't you join the community and be a part of it? You will have a great time participating here and interacting with the community professionals.

Hope to see you soon as a community member.

Thanks,

Brian Dela Cruz

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