What I mean is the history of the title. Why is somebody quit claiming to you? Did you have joint ownership and they sold to you? Then that would likely be okay. If the seller is just quit claiming to you, all they are saying is "I give whatever interest I have in this property to you" It doesn't say, "I own this property and nobody else has any interest in this property" The bank will just want to make sure nobody else has any ownership interest in the property. Just clearing up title.
Gotcha. Here's what I'm thinking and maybe you can tell me if it sounds like a good idea or a lame one.
The property has been owned for 10 years by my significant other and we have lived here 5 years together. I sold a house when I moved in. This house is worth 230K and we owe $111K.
My credit is much better than my beloved's and we want to tap into some equity to purchase a multiunit.
Plan is to quit claim to me, I refinance under my name and credit, take the money and fund our other deal.
um...if its just a significant other, and not a married other, I would say "no way!" if I was the significant other, as they are open to get hosed on this. ..
So your idea is you'll get better financing without him, correct? I couldn't tell you, I'm not real familiar in this area...I'd start talking to a good mortgage broker or banker. Or somebody else on this site might be better on this one.
Grant Deed
One of the many types of deeds used to transfer real property. Contains warranties against prior conveyances or encumbrances. When title insurance is purchased, warranties in a deed are of little practical significance.
Warranty Deed - A deed used to convey real property which contains warranties of title and quiet possession and the grantor thus agrees to defend the premises against the lawful claims of third persons. It is used commonly in other states but not in California where it has been supplanted by the grant deed. The modern practice of securing title insurance has reduced the importance of express and implied warranty in deeds.
Since we're presuming this is by definition a friendly transaction, it seems like there isn't a real difference.
check with lenders and title companies - I'm guessing they will want your ownership to come from an unrelated (legally, not emotionally) party to vest via a warranty deed. (we don't have grant deeds in PA to the best of my knowledge). naturally, I have no idea about Colorado. also, check with an attorney - where I live, they'd tell you not to use a quit claim deed.
Actually, a title question is quickly answerable by any title co., if you'll just order a title report.
It will show current condition of title, existence of any liens or encumbrances, and if the grantor clearly owns it all, then a QCD is fine.
However, my rule of thumb is get a WD where possible, only use a QCD if it's between trusted friends or if it's all I can get on sub-to, "get the deed" deal...and likewise, whenever I'm giving a deed, to use QCD whereever possible, only use WD where I'm being paid good money by a 3d party.
The bank will want you to clean up any title problems first.
Do you mean liens, etc against the existing owner? In that regard it is clean.
Anything else that the bank will make a problem?
What I mean is the history of the title. Why is somebody quit claiming to you? Did you have joint ownership and they sold to you? Then that would likely be okay. If the seller is just quit claiming to you, all they are saying is "I give whatever interest I have in this property to you" It doesn't say, "I own this property and nobody else has any interest in this property" The bank will just want to make sure nobody else has any ownership interest in the property. Just clearing up title.
Gotcha. Here's what I'm thinking and maybe you can tell me if it sounds like a good idea or a lame one.
The property has been owned for 10 years by my significant other and we have lived here 5 years together. I sold a house when I moved in. This house is worth 230K and we owe $111K.
My credit is much better than my beloved's and we want to tap into some equity to purchase a multiunit.
Plan is to quit claim to me, I refinance under my name and credit, take the money and fund our other deal.
um...if its just a significant other, and not a married other, I would say "no way!" if I was the significant other, as they are open to get hosed on this. ..
So your idea is you'll get better financing without him, correct? I couldn't tell you, I'm not real familiar in this area...I'd start talking to a good mortgage broker or banker. Or somebody else on this site might be better on this one.
There are other reasons for not being married so there's no threat of hosing.
I'm actually a broker myself I had just never run into it before today when one of my borrowers asked about it. Got me thinking...
Thanks for the insights!
what's wrong with him giving you a warranty deed? also, you need to check into tax issues (transfer tax,gift tax, capital gains, etc)
OK- showing my igonrance : what is the difference between a warranty deed and a quit claim and why would a warrabty deed be better than a quit claim?
Now Showing! My ignorance AND lack of spell check!
Unfortunately the law doesn't yet allow marriage protection for me and my SO yet we've co-mingled funds for the last five years.
Seriously, let's lose the "rip-off" angle and just focus on why a warranty deed vs a quit claim.
Grant Deed
One of the many types of deeds used to transfer real property. Contains warranties against prior conveyances or encumbrances. When title insurance is purchased, warranties in a deed are of little practical significance.
Warranty Deed - A deed used to convey real property which contains warranties of title and quiet possession and the grantor thus agrees to defend the premises against the lawful claims of third persons. It is used commonly in other states but not in California where it has been supplanted by the grant deed. The modern practice of securing title insurance has reduced the importance of express and implied warranty in deeds.
Since we're presuming this is by definition a friendly transaction, it seems like there isn't a real difference.
Thanks. I think a quit claim will do in this situation. I'll double check with a few lenders I work with. Cool.
check with lenders and title companies - I'm guessing they will want your ownership to come from an unrelated (legally, not emotionally) party to vest via a warranty deed. (we don't have grant deeds in PA to the best of my knowledge). naturally, I have no idea about Colorado. also, check with an attorney - where I live, they'd tell you not to use a quit claim deed.
Actually, a title question is quickly answerable by any title co., if you'll just order a title report.
It will show current condition of title, existence of any liens or encumbrances, and if the grantor clearly owns it all, then a QCD is fine.
However, my rule of thumb is get a WD where possible, only use a QCD if it's between trusted friends or if it's all I can get on sub-to, "get the deed" deal...and likewise, whenever I'm giving a deed, to use QCD whereever possible, only use WD where I'm being paid good money by a 3d party.