Posted on: 20th Mar, 2007 02:10 pm
hi!
my 20 year old son recently purchased a townhouse owned by his boss's mother using a quit claim deed. he plans to refinance the property after one year to pay back his boss for the cost of the down payment and closing costs which his boss willingly paid. will there be a problem since a quit claim deed was used for this transaction? and will my son have a problem in the future when he tries to sell this property? does a quitclaim deed "cloud" the title to the property? traditionally, in this area we issue warranty deeds. no attorney was used for this transaction. thank you for your help!
a concerned mom
my 20 year old son recently purchased a townhouse owned by his boss's mother using a quit claim deed. he plans to refinance the property after one year to pay back his boss for the cost of the down payment and closing costs which his boss willingly paid. will there be a problem since a quit claim deed was used for this transaction? and will my son have a problem in the future when he tries to sell this property? does a quitclaim deed "cloud" the title to the property? traditionally, in this area we issue warranty deeds. no attorney was used for this transaction. thank you for your help!
a concerned mom
"Will there be a problem since a quit claim deed was used for this transaction?"
If the deed was properly made out then there should not be any problem. As after the deed is recorded property title is in your son's name and he is free to sell it in future.
If the deed was properly made out then there should not be any problem. As after the deed is recorded property title is in your son's name and he is free to sell it in future.
Lillibet, a warranty deed is used when the seller fully warrants a clear property title. But when the property has a mortgage then a warranty deed cannot be used. Instead a quit claim deed is used for such property transfers.
'Will there be a problem since a quit claim deed was used for this transaction?'
If the deed was drafted correctly and then notarized & recorded properly then the property now is owned by your son and he has all the ownership rights.
Miller
'Will there be a problem since a quit claim deed was used for this transaction?'
If the deed was drafted correctly and then notarized & recorded properly then the property now is owned by your son and he has all the ownership rights.
Miller
"Does a quitclaim deed "cloud" the title to the property?"
If a title search is done then you would be able to know if your son has received a clear title or not. And is property free and clear of liens or encumbrances.
If a title search is done then you would be able to know if your son has received a clear title or not. And is property free and clear of liens or encumbrances.
Hi Lillibet,
Welcome to the forums.
It's ok if you have used a quit claim deed. Your son will not have problems in selling provided he pays off the loan in full. However, I feel you should have had the deed drafted by the attorney as the form should be in accordance with your state laws.
In general, a quit claim deed does not create a cloud on title. The deed is used to clear title when the grantor has questions on the title. For instance, a quit claim deed is used when the heir of a deceased title holder needs to transfer his ownership interest to clear the title. The quit claim deed is also used to settle disputes over boundary or ownership of property.
Thanks,
Sara
Welcome to the forums.
It's ok if you have used a quit claim deed. Your son will not have problems in selling provided he pays off the loan in full. However, I feel you should have had the deed drafted by the attorney as the form should be in accordance with your state laws.
In general, a quit claim deed does not create a cloud on title. The deed is used to clear title when the grantor has questions on the title. For instance, a quit claim deed is used when the heir of a deceased title holder needs to transfer his ownership interest to clear the title. The quit claim deed is also used to settle disputes over boundary or ownership of property.
Thanks,
Sara
"He plans to refinance the property after one year to pay back his boss for the cost of the down payment and closing costs which his boss willingly paid. "
Do inquire with the lender if there is a prepayment penalty on your son's mortgage. You have said that it is not been long the mortgage was taken so if there is a penalty clause then he may well have to pay it. The penalty is usually applicable for up to 3 years from the time loan is taken.
Do inquire with the lender if there is a prepayment penalty on your son's mortgage. You have said that it is not been long the mortgage was taken so if there is a penalty clause then he may well have to pay it. The penalty is usually applicable for up to 3 years from the time loan is taken.