Question about recording quit claim?????? - Posted by Aaron

Posted by B.L.Renfrow on November 06, 2000 at 09:09:58:

…the attorney’s opinion was that, on subject-to deals, there’s no reason to ever have the seller sign anything other than a general warranty deed, since that would put me in a stronger position should there be an undisclosed title problem.

With the exception of a seller who refused to sign a warranty deed, I couldn’t think of anything which would refute his argument.

Brian (NY)

Question about recording quit claim??? - Posted by Aaron

Posted by Aaron on November 04, 2000 at 23:57:41:

I am obtaining a pre-foreclosure on Monday. I am making up the back payments and I will have the owner quit claim the property to me. I am planning on having the quit claim notarized. But I was not going to record it because of Due on Sale possibly happening. I have done a title search and the house is empty. The house does not have a lot of equity. The current value is $175k with mortgages totaling $145. I am planning on lease purchasing for 2 years and sale at the current value at the time. Values in this area are sky rocketing. I am also contiplating refinancing into my name in a year. Any helpful advise would be appreciated. Am I leaving myself at risk by not recording?

Re: Question about recording quit cl - Posted by dewCO

Posted by dewCO on November 05, 2000 at 18:54:58:

And get title insurance too. Why would you refi in a year if you’re selling in another year down the road. Throwing money away, unless maybe interst rates go down 2%, and even then it might not make sense. The refi is the least of it if you’re not going to hold it for years.

YES! - Posted by B.L.Renfrow

Posted by B.L.Renfrow on November 05, 2000 at 10:34:04:

You are leaving yourself at CONSIDERABLE risk by not recording the deed, as explained below.

If you’re worried about the DOS, use a land trust to hold title.

And for what it’s worth, my attorney recommends always getting a warranty deed from the seller, instead of a quit-claim.

Brian (NY)

Record the Quit Claim on Monday! - Posted by Bob H

Posted by Bob H on November 05, 2000 at 02:16:00:

If you don’t record the Deed, you expose yourself (and the money you invest) to the following risks:

  1. The previous owner could deed the property to someone else, if they record their deed, you face an expensive and protracted legal battle to prove ownership.
  2. Any future liens, bankruptcies, judgments, etc. of the former owner, that are recorded prior to the recording of your deed, will attach the the property.
  3. If the former owner should die before your deed is recorded, title could be clouded and the validity of your deed could be challenged.
    There are probably a half a dozen other severe consequences of not recording the deed that I can’t think of right now, all of which being more risky than dealing with a potential due on sale issue.

Re: Question about recording quit claim??? - Posted by Eduardo (OR)

Posted by Eduardo (OR) on November 05, 2000 at 02:03:56:


Legally, although someone may have in their possession an unrecorded deed predating a recorded deed, the property is going to belong to the one who recorded their deed first. Check it out with the laws in your state. --Eduardo

A Quit Claim Deed MAY - Posted by David Krulac

Posted by David Krulac on November 05, 2000 at 18:38:03:

be as good as a Special Warranty deed IF the GRANTOR (seller) owns the property, then the Quit Cliam deed transfers their interest, whatever it may be. Therefore if they have sole interest in the property sole interest is transfered. I agree with your attorney that warranty is better, but only becasue you could sue them if there was a later title problem of their making, (if special warranty) or any making (if general warranty). But they’re giving you all they have in a Quit Claim Deed.
And record that Deed ASAP!