A contract for deed sale can
present a convenient alternative to the traditional real estate
conveyance. In this owner-financed deal, the buyer
usually lives on the property upon the execution of the contract.
While enjoying the property, the buyer pays for it in monthly
installments, until the agreed-upon price has been paid in full.
Down the road, when full payment is complete, the purchaser formally acquires the title deed. This event occurs through a warranty deed, which guarantees that the seller is the sole party with any claim on the property to be conveyed – no exceptions, unless stated on the deed.
If things don’t go as planned, and the buyer defaults, recovery of the property can be a time-consuming process. Defaults happen, so a seller should consider having the buyer sign a quitclaim deed as part of the execution of the contract. A quitclaim is a non-warranty deed. It conveys property with no warranty for the title. Through this document, if it becomes needed, the buyer will relinquish any claim on the property.
look at how the contract for deed sale works, and briefly examine the function
of the quitclaim deed.
Continue reading “The Quitclaim Deed’s Function in a Contract for Deed Sale”
There are various ways to transfer a real estate title, and among the simplest is a quit claim deed. The person is literally quitting their claim to the property. Just because it’s the simplest method does not mean it’s the best, however, especially if you are the recipient of the property. That’s because the quit claim deed does not guarantee that the grantor – the person transferring the property – actually owns the real estate in question. The grantee, or person receiving the property, not only could end up with a worthless deed, but cannot sue the grantor if it turns out that individual did not own the property or owned only a percentage of the land or buildings. However, if fraud is involved, it is possible to sue the grantor on those grounds. That does not mean you should always avoid quit claim deeds, but it does mean you should do your research.
Continue reading “What is a Quit Claim Deed?”
Quit claim deeds convey the current owner’s rights in real property, if any, to new owners. The transfer may or may not include consideration (something of value, usually money). They are generally used to clear clouded titles, to settle boundary disputes between neighbors, or to make gifts of real property, and include no warranties of title for the new owners.
Continue reading “Quit Claim Deeds after Divorce or Dissolution”
Provided by Matthew A. Quick, Esq., an attorney licensed in the state of Illinois.
Title insurance coverage is dictated by the terms of the policy issued by the title insurance company. In most, if not all, policies for title insurance there is a provision for “Continuation of Coverage” or “Continuation of Insurance.” Typically, this provision provides that the insurance will continue only so long as the insured holds an interest in the land or has liability by reason of warranties given in any transfer of the title.
Continue reading “Quit Claim Deeds and Continuation of Title Insurance”
An unrecorded quit claim deed is still valid. While there is no time limit on recording a deed or recording required for a quit claim deed to be valid, record all deeds as soon after the transaction as possible. Failure to record a deed could render transfer or mortgaging of the property impossible and create numerous legal difficulties.
Continue reading “Quit Claim Deed – An Unrecorded Quit Claim Deed Can Still Be Valid”