Posted by WaynePa on June 05, 2002 at 13:12:34:
Aaron,
Don’t take my word for gospel, but I believe that you want to get a Warranty Deed when taking the house Sub 2. Then when you sell the house you want to issue a Quit Claim Deed. This is my understanding, but if
I am wrong I am sure someone more knowledgeable will educate us both.
Wayne
Warranty or Quit Claim Deed with Sub 2? - Posted by Aaron330i (Austin)
Posted by Aaron330i (Austin) on June 05, 2002 at 10:32:39:
In the Austin REI Club meeting last night, the presenter led us through a recent Subject To that he did. Interestingly enough, the result of his method is obtaining a Warranty Deed with a title policy instead of getting a Quit Claim Deed.
Which do you prefer to get?
Re: Warranty or Quit Claim Deed with Sub 2? - Posted by Bud Branstetter
Posted by Bud Branstetter on June 05, 2002 at 13:29:56:
Most title companies in Texas do not like quit claim deeds. They feel they do no properly convey title. More of “if I have any interest you can have it.” Instead they use a No Warranty Deed or Special Warranty Deed. It conveys title but does not give a warranty other than from the seller to the buyer. A full blown warranty deed says that clear title is give and you willever defend that title. Or in other words-they can sue you if title is not clean. I known of no title company that will insure title on a subject to. He may be getting a title policy that excepts the DOS of the existing lender. You would be paying a lot for little protection with such a policy. The idea is usually to get into a subject to with little if any money. You do an abstract to be sure you can convey title to your buyer. If you have to put out a lot of money you should be using a different approach.