Posted on: 27th Feb, 2009 02:16 pm
Hello,
I live in Michigan and a real estate agency just listed a house that I am very interested in purchasing. The home is extremly below value with lite fire damage and is listed as a Quit Claim Sale. What does Quit Claim Sale's mean for a potential buyer and is this something that someone would really want to get into? What are some of the things I should look out for before making this type of purchase?
Thank you,
-Salina
I live in Michigan and a real estate agency just listed a house that I am very interested in purchasing. The home is extremly below value with lite fire damage and is listed as a Quit Claim Sale. What does Quit Claim Sale's mean for a potential buyer and is this something that someone would really want to get into? What are some of the things I should look out for before making this type of purchase?
Thank you,
-Salina
Hi salinakali,
As far as I know through a quitclaim sale a seller transfers the title, rights and claims to the property to the buyer and the quitclaim bill of sale serves as a sales receipt. You can take a look at a sample quitclaim bill of sale in the following site:
"http://www.kinseylaw.com/freestuff/buysell/QuitclaimBill.html"
As far as I know through a quitclaim sale a seller transfers the title, rights and claims to the property to the buyer and the quitclaim bill of sale serves as a sales receipt. You can take a look at a sample quitclaim bill of sale in the following site:
"http://www.kinseylaw.com/freestuff/buysell/QuitclaimBill.html"
salina, you want to take ownership only with a warranty deed. here is what a quit claim deed will give you: whatever ownership interest that currently exists.
in other words, if the grantor(seller) on the quit claim deed has no ownership interest, that is exactly what you'll get. if the grantor has a 50% ownership interest, that is exactly what you'll get. what you'll also get is no assurance that there are no other liens or encumbrances against the property.
a warranty deed is designed to convey clear title to you; a quit claim deed is designed to transfer an interest in a property from one person to another (or one entity to another). what that interest actually represents is not necessarily defined.
i hope i've made sense...what you need to do is #1) beware; #2) get a lawyer to help sort this out for you. then move on from there, making an informed decision as to whether this is a deal for you or not.
in other words, if the grantor(seller) on the quit claim deed has no ownership interest, that is exactly what you'll get. if the grantor has a 50% ownership interest, that is exactly what you'll get. what you'll also get is no assurance that there are no other liens or encumbrances against the property.
a warranty deed is designed to convey clear title to you; a quit claim deed is designed to transfer an interest in a property from one person to another (or one entity to another). what that interest actually represents is not necessarily defined.
i hope i've made sense...what you need to do is #1) beware; #2) get a lawyer to help sort this out for you. then move on from there, making an informed decision as to whether this is a deal for you or not.
Dear Sirs,
My Sister and I bought one rental protery 25 years ago at $130,000 with join tenancy deed. Because I was not living in U.S at that time, and I only put $5,000 for that property. My sister receives all of rental income and report to IRS with 100 percent depreciation.
Currently she wanted to transfer her 50% portion to me and charged me $125,000 only. (market value is around $300,000).
Can she quick claim sale 50% to me? Does she need to pay property gain and depreiation tax when she sell to me? or I will automet inherit all tax from her now and pay the tax when I sell the house?
My Sister and I bought one rental protery 25 years ago at $130,000 with join tenancy deed. Because I was not living in U.S at that time, and I only put $5,000 for that property. My sister receives all of rental income and report to IRS with 100 percent depreciation.
Currently she wanted to transfer her 50% portion to me and charged me $125,000 only. (market value is around $300,000).
Can she quick claim sale 50% to me? Does she need to pay property gain and depreiation tax when she sell to me? or I will automet inherit all tax from her now and pay the tax when I sell the house?
Hi amy,
Your sister will be able to sell off the property to you and transfer the title of the property with the help of a quit claim deed. If your sister receives a profit by selling off the property, then she will be liable for paying capital gains taxes. Once you become the owner of the property, then you would be liable for the property taxes and other related taxes.
Thanks
Your sister will be able to sell off the property to you and transfer the title of the property with the help of a quit claim deed. If your sister receives a profit by selling off the property, then she will be liable for paying capital gains taxes. Once you become the owner of the property, then you would be liable for the property taxes and other related taxes.
Thanks
am i responsible for a property that is currently in my name if i quit claim it to my brother
hi shondra!
welcome to forums!
a quitclaim deed will help you in transferring the property to your brother. however, if there is a mortgage in your name, then the quitclaim deed won't help you in transferring the same. in that case, your brother will have to refinance the mortgage and release you from the liability of the mortgage payments.
sussane
welcome to forums!
a quitclaim deed will help you in transferring the property to your brother. however, if there is a mortgage in your name, then the quitclaim deed won't help you in transferring the same. in that case, your brother will have to refinance the mortgage and release you from the liability of the mortgage payments.
sussane
Shondra, to elaborate - if you quit claim your interest in the property, then you'll not be obligated any further in regard to the property itself. As Sussane noted, any liens that involve you with regard to the property would not go away; you'd still have liability there.