Divorce and subject to - Posted by Brad TX

Posted by JT - IN on May 18, 2001 at 11:24:21:

I think if Wife Quitclaims to Husband, and Husband sells property (subject-to, or otherwise), prior to the Divorce, then there could still be a problem here.
If there are Dower rights, in the State where property exists, and you followed this sequence without getting another Quitclaim Deed at the time of the sale, from Wife, releasing dower rights, then you still have a problem.

Best direction to travel here, is to have Wife quitclaim her interest in property to the Buyer, and same for Husband, directly to Buyer, then you will avoid any Cloud on the Title, if Dower Rights are involved.

Just the way that I view things…


Divorce and subject to - Posted by Brad TX

Posted by Brad TX on May 18, 2001 at 08:14:22:

I met with the owner at his house last last night. He is willing to go with a subject to deal. He is going through a divorce which will be final in July.

The wife is living in an apartment. I have not talked with her yet. Does she need to sign all the paperwork, or just quit claim the house over to him?

How do I handle this one properly?


Re: Divorce and subject to - Posted by B.L.Renfrow

Posted by B.L.Renfrow on May 18, 2001 at 23:39:12:

If Texas is a community property state (“What’s hers is hers…and what’s mine is hers”) then the wife has to deed it separately from the husband, directly to the buyer…not to the husband.

Of course, I have no idea whether TX is a community property state or not.

Brian (NY)

quit claim deeds - Posted by Bud Branstetter

Posted by Bud Branstetter on May 18, 2001 at 14:12:07:

One of the uses of a quit claim deed in Texas is for interest obtained from a sheriff’s deed. If you get a warranty deed from the original owner you have title. You just need the interest of the purchaser at the sheriff’s sale released.

In Texas title companies do not like quit claim deeds. They more or less say what ever interest I may have, you can have. They do not convey title. I am using a No Warranty deed that does convey title but without warranty. A special warranty deed says I did’t mess up title while I had it.

I would still have her sign all documents with him. From a warranty deed to trustee, to land trust etc.
It’s safer.

If you want to do it properly then you use a Pactrust. If you just want to hide the elephant use the regular trust arrangement.

ask the source - Posted by TRandle

Posted by TRandle on May 18, 2001 at 10:35:23:

If you have questions regarding title, it’s probably best to ask your title company.

If the divorce is not final until July and you’re buying prior, then yes, you need her signatures. If it were after the decree were final, then you could have the Special Warranty Deed (I think) recorded and you would only need him. If he has someone else in his life now, that person may also have to sign some docs relinquishing any claims to the house.

I can’t think of any valid reason to use a QuitClaim Deed in Texas.

In each of the divorce situations I’ve done, it was always after it was final (or about to be). Hopefully, that helps.

Re: Divorce and subject to - Posted by Matt B

Posted by Matt B on May 18, 2001 at 10:34:49:

Congratulations on the subject to deal, Brad! If you don’t mind, would you share the numbers on this deal?

As far as the wife goes, she only needs to quit claim it over to the husband. She should be made aware that her name is going to stay on the mortgage though. Of course, so is the husband’s. Do you have all your CYA documentation for this one?

retraction - Posted by TRandle

Posted by TRandle on May 18, 2001 at 10:45:30:

Perhaps I’m ignorant and Matt’s method would work. If the wife quitclaims the property prior to the divorce, maybe the husband can sell it without messing up the divorce proceedings and provide clear title. If it were me, I’d still check the title company and the divorce attorney. Sorry for the misinformation, if that is in fact what my first post was.