Can I assign a quit claim deed - Posted by Jason Taylor

import · May 12, 2005, 3:17pm

Posted by John Merchant on May 15, 2005 at 10:33:49:

Sounds like her lawyer’s not really thinking here.

Any title company would, upon her ordering up a title policy, let her know if they’d insure the title…or what she’d have to do to insure her title.

If they would insure the title, then she could give her warranty deed without concern, knowing the title insurance company would legally back up and defend that title against all attacks.

So if her lawyer is telling her that lots more legal work has to be done, at her expense, this just isn’t so, at least not by her own lawyer.

The title co. would charge for their title report but that’s normally just a few hundred bucks.

Their lawyers work for them on salary and the end customer gets a discounted rate on the resulting legal opinion.

If their lawyer OKs it, then the insurance policy is issued and that’s a big plus that her own lawyer cannot offer.

Now, from your view point, you might not want to allay her concerns about the validity of her title, as once she knows she does have good transferable title her price might go up.

It might behoove you to get your own title opinion from a title company so you, alone, know what she’s got…then maybe a QCD would be good enough for you and you might get a very cheap property here.

On the other hand, her lawyer could have a very valid concern.

Many times the welfare agency won’t agree to take on a person’t medical or health care unless that person deeds over his property to the agency or state, county, etc…and if that’s what the elderly relative has done, then it may be that the woman has no rights to the property.

import · May 12, 2005, 3:17pm

Can I assign a quit claim deed - Posted by Jason Taylor

Posted by Jason Taylor on May 12, 2005 at 15:17:04:

This is my First Deal. I have a seller whose attorney wants me to change my contract from saying “Closing date shall be 90 days from the date of this agreement, with title to the above described real estate to be conveyed by Warranty Deed”. He wants me to change Warranty deed to Quit Claim Deed. I have contingencys in the contract to allow me to assign it. I want to assign this contract to a rehabber at closing. Will I still be able to assign this contract with a quit claim deed in my name. I am trying to get around paying capital gain taxes and having to pay to do 2 closings. Can anyone give me any advice to this problem.

import · May 13, 2005, 8:36pm

Re: Can I assign a quit claim deed - Posted by John Merchant

Posted by John Merchant on May 13, 2005 at 20:36:05:

Your post raises a couple of legal issues.

Regarding the QC Deed in lieu of the WD…I wouldn’t advise you to accept that unless you’re also getting title insurance proving you’re getting good and complete title.

There must be some factor in the seller’s title that makes the lawyer nervous and relucant to deliver you a WD, and that same thing would make me want it even more.

As to your right to assign, have that in the P&S Agreement that you DO have the right, but get your tax person’s advice first.

As to your avoidance of capital gains tax, I’d urge you to sit down with a tax accountant so this is done at minimum risk but maximum tax advantage for you.

In my state of WA, the State Atty General has put all REIs on notice that in a 3 party deal like you envision, buyer A first has to pay the excise tax, then buyer B has to also…and A does NOT have the right to just pass this on to B.

The failure to do that accordingly, where each real buyer pays his own excise tax will be treated as illegal tax evasion and fraud, according to the AG’s office.

import · May 15, 2005, 10:12am

Re: Can I assign a quit claim deed - Posted by Jason Taylor

Posted by Jason Taylor on May 15, 2005 at 10:12:20:

John
Thanks for the advice. You have confirmed my thoughts. The seller has since told me that her parents were put in a home through medicade and she took over the deed to the property. Her lawyer is supposedly concerned that she could somehow be sued down the road for selling the property. She is now in the process of contacting a new lawyer for a second opinion on this subject.I have since told the seller the only way I could do the deal is with a warranty deed so I can cover all my bases on the deal. I am currently waiting on her response. She is very motivated to sell the property and rid herself of the empty home. Thanks once again for your advice.