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Which form to go for - Quitclaim deed or warranty deed?

Posted on: 08th Dec, 2007 09:30 am
Hello,

I bought a property with my mother-in-law where I was the primary borrower and she was the secondary borrower on the loan. We bought the property on an agreement that she would eventually sign a quit claim deed where she would be the grantor and my wife would be the grantee. My question is do I have to be the grantor also on the quit claim deed form alongwith my mother-in-law bcos she quitting her claim and I am not?

Secondly from reading various discussions on the forums you recommend a warranty deed is better than a quit claim deed. Which one should we do?

Thirdly once the quit claim deed is signed do we have to refinance? Right now mother-in-law pays a monthly rent to us.

Also do we have to sign these documents in front of a notary public or can we sign it in advance and then get it notarized.

Thanks in advance for answers to so many questions. Your help is highly appreciated.

Sam
Hello Goodshepherd,

1. Your mother-in-law has to sign the quit claim form as the grantor with your wife's name as the grantee.

2. Quit claim is the best way to transfer ownership within family members. A warranty deed is mostly used when a property is sold off.

3. This is an important issue. If your mother-in-law is on the mortgage, then you have to take the lender's consent before removing her from the title. If she is the co-borrower, she is responsible for the loan if you default in making the mortgage payments. So the quit claim will not release her from the financial liabilities. You have to talk to your lender and see if he agrees for a refinance to remove your mother-in-law's name from the mortgage.

4. You have to sign the quit claim in front of the notary public.
Posted on: 09th Dec, 2007 10:35 pm
A warranty deed is better for buying-selling transactions because this deed states that there are no liens attached to the property and the title is clear. When any transfer of ownership is done within family members, you may do that with a quit claim deed.

You have to sign the deed in front of the notary and record it at the County Recorder's Office in order to make it valid.

You should consult your lender before removing your mother-in-law's name from the title as she is the co-borrower. Even if you do a quit claim she will still be responsible for the loan if it is not refinanced in your name.
Posted on: 10th Dec, 2007 04:29 am
Hi,

1. You need not to quitclaim. As per your agreement, your mother in law will quitclaim to your wife.

2. Niicss has rightly mentioned that warranty deed is used to sell the property but for the property transfer in the family quitclaim deed is good enough. We suggest for Warranty deed because it ensures that the property is lien free.

3. Does your mother- in-law is on the mortgage? If so it is better to refinance to remove her name from the loan. You will also have to take consent from the lender before signing the quitclaim deed.

4. The quitclaim deed should be signed in front of the notary publics and then you need to notarized and record the deed in your county recorder office to make the deed valid.

Feel free to ask if you have any further questions.

Thanks,
Larry
Posted on: 14th Dec, 2007 05:29 pm
Thank you all for this information.

Sam
Posted on: 18th Dec, 2007 09:25 pm
hello all,

thank you for all the useful information you have given. as per your suggestion you all have mentioned i have to inform the lender while doing the quitclaim deed transferring from my mother-in-law to my wife on the title of the house.

my question is: do i have to refinance to take her name of the title of the house. i do not have enough equity to refinance.

can anyone give me the information on what is novation and can i just opt for novation and do the quitclaim.

all your answers will be highly appreciated and thanks in advance.

sam
Posted on: 19th Dec, 2007 09:34 am
Hello Ssnautilus,

You have to do the refinance in order to remove her name from the mortgage and not from the title. The quit claim itself will remove her from the title.

Lenders usually don't agree to remove the co-borrower from the mortgage but you may talk to him for that.

Novation is a process by which you may remove the name of a person obligated to pay the debt and transfer the entire responsibility in your name only. A lender might agree for a novation only if you have a good credit and a significant source of income.

Feel free to ask if you have any further query.
Posted on: 20th Dec, 2007 01:49 am
I'm in the process of a divorce and have my primary property quit claimed as a married couple. I owned the property for 10 years prior to getting married and took advantage of refinancing the property, thus the title company quit claimed the property automatically. I'm the only person on the warranty deed and have made all the monthly payments. Is it possible to have my future ex-wife removed from the quit claim deed without her consent or am I stuck having to split the sale of the property with her. I would like to continue to live at the property but I cannot afford to buy her out. Do I have any hope in this legal battle? Thanks for your reply!
Posted on: 06th Nov, 2008 10:43 pm
Hi Joeski!

Without the permission of your wife, you won't be able to remove her name from the deed. This will be considered as illegal. You can either convince her to transfer the property in your name or you can file a partition law suit and sell off the property.

Thanks
Posted on: 07th Nov, 2008 12:46 am
Thanks for your reply Jameshogg!
I've been trying to convince her to sell off the property? Can a Judge reverse the quit claim? To sell off the property would be a mistake with this market.
Posted on: 07th Nov, 2008 05:29 am
Hi Joeski!

In this case, you can ask the judge to give you the property. If the judge passes a judgment in your favor then she will have no claims over the property.

Thanks,

Jerry
Posted on: 08th Nov, 2008 01:22 am
Thank you Jerry!!!
Posted on: 09th Nov, 2008 06:44 pm
I need to get the form or deed document to add another person to some land that is only deeded in my name now . Were would I get those documents that I need to dowmload to do this . Thanks Clay Im in Virginia
Posted on: 10th Nov, 2008 09:00 am
Posted on: 11th Nov, 2008 01:02 am
Hi everyone!

My husband and his father bought a number of properties over the years. My father in law has met a young woman and had my husband sign all the properties over to her, via warranty deed. This is fine with us, because unfortunately we couldn't afford to keep them without his partnership with his father.

Anyway, my husband warranty deeded them to her with the agreement that she would assume the mortgages. This has yet to be done and its been about 6 months. I know credit is tight and lending is difficult, but my husband is on the hook for these mortgages but he's not listed on the properties...seems to me like an uncollateralized debt.

Anyway, his father and new wife are making sporadic payments lately (if at all) and I'm concerned about my husbands credit, possible leins, foreclosures etc.

Does anyone know how to "force" her to have the mortgages moved into her name (since the property is registered this way).

Thanks for you help!!!
Posted on: 19th Nov, 2008 08:49 am
Hi Roxy,

Welcome to our community forums.

I guess forcing someone to remove her name from the mortgage would be illegal. However, I do understand your problem. Does the lenders know that the properties have been transferred? If they come to know of it, chances are that they may call the loan due. I think you should have a talk with the lenders and see if they are willing to allow for refinance of the loans.

Regards,

Jessica.
Posted on: 20th Nov, 2008 03:16 am
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