Real estate question, quick claim deeds.

[lyon]

I am in the process of buying a house from a private party. Her lawyer gave me a contract that is a quick claim deed. I have been told that it should be a warranty deed and that quick claim deeds are for people that are passing on property to family members of for divorces. Should I ask her for a warranty deed? Is there any potential problems with a quick claim deed that I should be aware of?

[Rick Lee]

I think you mean quit, not quick, claim deed.

[the]

A quit claim deed basically means the person is telling you "I am giving you whatever interest I have in the property, if any, that I have.

It is not necessarily telling you that they are representing that you will be the sole owner after purchase.

[lyon]

ok, so I would have to do a title search to see if there is a lean on the property. why would they want to do a quit claim deed and not a warranty deed?

[Rick Lee]

If you're taking possession of any property, you need to do a title search. If you're financing it, your lender will probably require a lender's title insur. policy.

[lyon]

Thanks, this is my first real estate purchase and it helps to get some help.

[Rick Lee]

Don't sweat the mechanics of it. The title co. or settlement atty. handles all this stuff for you.

[fingpilot]

You really should be looking for liens, not leans as well.

[the]

Exactly what Wayne said. You get title insurance, they do all the searches, give you the results, and guarantee the results.

[Danny_Ocean]

Originally Posted by lyon

Thanks, this is my first real estate purchase and it helps to get some help.

Although the combined knowledge on this board is impressive & overwhelming, this is not the place to be seeking legal advice on your first real estate purchase. Hire your own attorney or closing agent.

[john70t]

Some more info here and elswhere:
http://homebuying.about.com/od/titleinsurance/qt/REdeeds.htm
http://en.wikipedia.org/wiki/Warranty

If thinking of purchasing a house, you should be in the process of edumacating yourself quickly...as in crash-course quickly...then start making comparative decisions. Make up a spreadsheet or a form to collect the info and find the bottom-line costs. The present taxes may be based on the selling price 20 years ago.

Make sure your RE agent is a "buyers agent" so legally he/she can't start giving away all your stategy to the selling agent, and only sign a short exclusivity contract in case he/she turns out to be a dud. A RE agent's true interest is in closing the sale as quickly as possible and getting their percentage, you are the one with the money and pen.
You don't want to later find out the neighbor is claiming road access across the front yard, or the house was used as a meth lab and requires ten grand for compliance, or the local plant which the town's economy is based around is closing, or.... her ex-husband's name is also on the deed and you just got a "partner".

Many states, especially in the midwest, require warranty deeds, which provide a higher level of buyer protection even after the sale.
This is a huge purchase, and one that will drain most of your income for years to come. The market is still level and/or decending, so there is plenty of time to comparison shop.

[greglepore]

the seller's atty would naturally PROPOSE a quitclaim deed, as it gives his client the least exposure. You should counter that you want a warranty deed (special is generally acceptable, general prefered).

It doesn't mean there's anything wrong, its simply natural for the atty on the other side to suggest the most favorable type of deed for his client.

[MRM]

The only reason why a seller who is represented by an attorney would try to sell a quit claim deed to a first time buyer who doesn't have any attorney is because there is something wrong with the title that makes it hard or impossible for the seller to provide a warranty deed.

You need an attorney now before you go any farther. Tell me where you are in Wisconsin and I'll give you a good reference to a competent lawyer who will do a closing for a reasonable price for someone on a budget. It is way too complicated to explain all the issues here. Just understand that you are dealing with something too big for you to do on your own for the first time. You might get it right, but the thousand bucks you spend on an attorney will be worth many times that amount in the value of getting the deal done right the first time.

Please get an attorney. Without competent, independent advice from someone representing you, you are depending on the people you are negotiating with to give you a fair deal. Don't rely on the seller to watch out for your interests.

[lyon]

Thanks,
I realize I need some help with this deal. I am close to Winona/La Crosse.

[MRM]

Originally Posted by lyon

Thanks,
I realize I need some help with this deal. I am close to Winona/La Crosse.

You're in luck. I grew up near La Crosse and went to school there. Lots of good firms pretty reasonable there. Where are you buying?