Profile picture for taderz

QUIT CLAIM DEED

I have mixed advice on QCD investment. A professional saying I should not touch it because it is always enforceable and a hinderance on ownership so even if no encumbrance, surprises do spring up later, especially in Detroit.  Another saying go for it as long as search clears it of any encumbrance. Views kindly welcome pls.

Is it true that if I buy a QCD after clean search, I cannot upgrade it to proper deed or warranty? That it is always hanging on whatever title I have - therefore difficult to sell on in future? Appreciate response.
  • April 25 2014 - US
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Answers (5)

Profile picture for taderz
Just thanking you all for your responses
  • May 01 2014
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No, you can't "upgrade" a deed. A QCD has no warranty - it simply transfers whatever rights, if any, the grantor has to you. I can QC you on any property in America; I'm simply giving up "whatever rights" I may have in the property.

Since there may be ZERO rights transferred with a QCD, buyers tend to want some sort of guarantee that the person giving them the deed has some rights to give. A Warranty Deed is exactly that - I warrant that I have the right to transfer title to you, and I have a title insurance company behind me backing that up.

Title insurance companies will not warrant QCDs. If you accept a QCD, and you are lucky and it really did transfer all rights in the property to you, then you will be able to give a subsequent buyer a Warranty Deed.

Theoretically, a QCD should work to transfer title, but I wouldn't buy one for a dollar.

All the best,
  • April 25 2014
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If you are going to the trouble of doing a title search, why not just buy the title insurance at the same time and get a warranty deed?  Why go back later and do it again?

If the seller refuses to allow a title search, or title insurance, I would be leery.  I understand the seller does not want to pay, but a Quit Claim Deed does not guarantee clear title.

Oh, that attorney advice is good advice.
  • April 25 2014
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I'm not sure if title officers in Detroit are required to be limited practice officers (LPOs) or not. But, if so you should speak with the title insurance officer about your concerns regarding the title, and follow up with further legal advice from an Attorney.
  • April 25 2014
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Profile picture for shapiroamg
Seems like you should be speaking to an Attorney about this.
  • April 25 2014
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