Warranty Deed Or Quitclaim?

Comments(6)

• 
  JohnMerchant2nd December, 2004

  With a WD, grantor is guaranteeing some things about the title, whereas, with a QCD, no guarantees.
  
  G'or is just saying "here is what I own, whatever it is. Enjoy".
  
  So if you're deeding to yourself or an alter ego (your corp or LLC) no need to g'ee anything.

• 
  glynnor3rd December, 2004

  Got it. Thanks for your help. Since I'm deeding to myself, or rather, my own LLC, the Quitclaim should work fine.

• 
  DB20005th December, 2004

  To transfer property from your personal ownership to your own LLC (or living trust or other entity that you own), follow one or the other option below:
  
  (1) If you use a warranty deed, basically it is your promise to yourself that that you will protect the condition of title for yourself. Why not; would you want to deny liability to yourself? Here's why: The title insurance policy insuring the condition of your title continues to protect you for your warranties of title to the grantee entity. Simply, if there is a title defect that would be covered by your title policy, then your new grantee entity will have the benefit of that title policy coverage due to the connection of your warranty of title.
  
  (2) If you prefer to use a quitclaim deed, then you should get an endorsement from the title insurance company that issued the policy when you purchased, which will agree that your new entity has the rights of an insured. Without that endorsement, if you convey without a deed warranty, the prior title insurance policy does not protect the condition of title for the new entity.

• 
  RESteve5th December, 2004

  Just to make sure I got this right: The title policy will fail to cover the LLC if using a Quitclaim Deed if there are any new problems with the title afterwards?

• 
  DB20005th December, 2004

  "if using a Quitclaim Deed" the prior title policy provides no coverage to the new LLC (or living trust or other entity grantee) for any title defects, regardless of the time.

• 
  RESteve6th December, 2004

  Thanks. =)