The DANGERS with QUIT CLAIM DEEDS [True Story]

A quit claim deed is typically used to convey the interest of the owner to another party.

But, unlike a warranty deed, a quit claim deed only transfers the interest that the seller has, and that interest could be subject to liens on the property that the buyer now assumes.

In other words, you’re taking a big risk when you purchase a property and take title under a quit claim deed.

Quit Claim Deeds are frequently used in divorce cases where one spouse transfers their interest in the property to the other spouse..

Or, when a parent is transferring property to children.

Another application is when a member of an LLC transfers their share of a property to the other members of an LLC.

These types of transactions are typically acceptable.

But there’s one instance where taking title to a property under a Quit Claim Deed could be very costly to the buyer.

I’m going to share a true story with you right now.

A client of mine purchased property on a Land Contract. When my client paid the land contract in full, the owner transferred the property to my client with a Quit Claim Deed.

By the way, my client never consulted with me when purchasing the property, and if my client did, the result would be different.

Long story short, a few years later, my client wanted to sell the property. My client found a good buyer, and that buyer applied for a mortgage and was approved.

However, when a title search was performed on the property, a big lien appeared on the title for a judgment that was taken against the original seller. And, of course, the judgment was required to be paid in order for my client to sell the property.

The original judgment was for $9 thousand dollars, and the interest accrued to over $8 thousand dollars for a total lien of $17 thousand dollars.

So, my client contacted me. My client was shocked. My client’s realtor didn’t know what to do.

When a judgment is taken against a person, if that person owns real estate, the lien attaches against any property that is owned by that person. At least that’s how it works in Wisconsin.

Fortunately, I was able to negotiate with the judgment holder for a substantial reduction in the judgment lien.

What happened to the original owner? Nowhere to be found. That’s why that original owner conveyed to property to my client with a Quit Claim Deed. Sneaky.

That was an expensive lesson for my client, and for investors out there who purchase property and try to save money by not hiring a lawyer who is knowledgeable in the area of real estate transactions before purchasing.

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[AttorneyRobertFlessas]

Thank you Robert for watching my video! I’m glad you enjoyed it.

[ronaldblack-zbyn]

Thank you, I spoke with a realtor today about a house for sell under a quit deed sale.

[ruckes]

Both of my parents passed in the last 2years and the equity loan matured in march of 2022, and PNC will not let me keep it. I have been paying them. And leaving there for the past 9 years. And paying over the payment amount. I put a 750, 0000 lein on the house. But they would not let me sell it. And the house is not worth what my parents owe on it. And my probate case was denied, and PNC took it to foreclosure to sell. And it didn't sell because they can't see the inside. And it needs a lot of work.

[MortgageMike]

Great video Rob, sounds like a title search would've saved your client a lot of grief.

[jusme]

My spouse and i bought a house and i took warranty deed with our names on it and the county clerk said we should do a quit claim deed so we equally own it and if something happens to 1 of us the surviving owner would be able to do whatever is needed without paying big money to Be able to do what we needed

[TranscendingTrauma]

What if you were awarded the house in divorce but the ex spouse has gone missing in action. Trying to evade child support. I now have a home that I’ve been paying on for years without a quick claim deed or mortgage in my name.

[andrewa]

I did a title search on a investment property and sign a agreement but towards the end the seller boyfriend was trying to do a Quitclaim deed and have me pays all closing fees no thanks i just walked away who ever read this just take your time I know sometimes we wants things now but due your research a ask wise people advice ask multiple people to and do whats best for yourself.

[obombabeenlaid]

Was the lien recorded against the property or merely a judgment against the ex-owner?

[galactic]

If you want to buy a house from a homeowner in pre-foreclosure, can you do a quit claim deed before a lis pendens is filed in order to do a quiet title to stop any foreclosure process from starting?

[khill]

What about if you separate and move out (no marriage) and he wants your name off the deed? Why does Philly charge $4, 000 to do that?

[codyjenn]

What about in Oklahoma my aunt did this behind my back claimed she’s been taxes that I have been paying for yrs me and my family it was in all her brothers my dad and sisters name I’ve lived on property for 3yrs have took care of it payed taxes and she claimed she did and illegally got it what can I do about this I pray you answer my question or get back to me help me somehow I’ve been losing my mind. She’s trying to sell it it’s been in our family for years. It’s very hurtful I don’t understand. I know God‘s gonna take care of it but I’m not so no he’s gonna put it on someone’s heart to reach out to me and help me maybe that shoe I don’t know if you feel it anyways if not, then it’s someone else, we got to get a lawyer soon see my grandma and grandpa left their property to 12 and their children. My dad did not agree that she ran in the paper for three months. Nobody looks at the paper anymore hardly and we had no idea until I called to see how much the taxes were. I have the receipts where I paid them, also, she has not step foot on this property in the three years I’ve lived here by the way I own my own house on the property. I have very little land with it as well. I only owned the exact piece for the house was sitting, which is not much there’s almost 2 acres here but not quite but everybody was willed 1/10. My dad did not agree. However, they did not stop her and a lot of my family did agree. Some of them had dementia a lot of them actually I’m the one living on the property. My brother has a trailer at the end of the road. We are the ones who have took care of it not hurt what can I do? Please help

[johnjirik]

My uncle died two years ago. My aunt never updated the information at the county. Now we want to do a Quit Claim to add me to the property with her. What is the proper way to write the Grantor if he is deceased - John P Smith and Joan P Smith, husband and wife would be the correct way if he were alive. Thank you.

[galactic]

If you bid and win a house at a courthouse auction, and it has liens on it from the city like weed liens, junk liens, misc. liens, can you do a quiet title to get rid of those liens?

[icecreampusha]

I'm interested in purchasing a property in Ashtabula, OH. I just discovered that it has a Quit Claim deed. What should I do to ensure there aren't any liens on the property?

[creepybunny]

I see you're answering people's questions, thank you for taking time for that! So many do not. I have a question. My mother is aging and wants to make sure the bank doesn't yank the house without giving us the option to take over payments (without having to remortgage etc). We are wondering if a quitclaim deed is what we need to do, so assure us that I can keep the house and make the payments. Thank you!

[Noig]

Hey what about using quit claim deed for transferring the property to a trust, is it only the interest or the property itself? And is quitclaim deed ok for this instance ?

[crazyburkey]

If this was from a tax sale, the mortgage should have been wiped out, if it's a land contract only, yeah, you definitely need to know what you're buying

[aaronjohnsonjr]

I'm buying a house right now . she has a general warrenty deed . however she now owes back taxes . to my understanding that voids a warrenty deed . being a warrenty deed I assume it was good for her she's had it a few years now and I'm willing to pay the taxes but don't have the funds now . I paid off 3k in liens on the property from the city . can I transfer a general warrenty deed into a quit claim

[musicorbiiits]

I’m a co signer trying to remove my name of my brothers house would a quit claim deed be able to do just that?

[Nirky]

So then the question is, how can a would-be buyer research to find out if a property he is interested in has any kind of lien against it? Pay for a title search?