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Anybody ever done one?
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Re: Quitclaim Deed
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Skelly</div><div class="ubbcode-body">Anybody ever done one? </div></div>
done a few.
its pretty straight-forward (well a guess depending on the state).
(For Georgia), no lawyer needed.
simply download a quit claim template, and complete it.
Have a notary witness the signatures and file it at the court house.
Can provide a template if needed.
Any questions in specific?
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Re: Quitclaim Deed
yes...say the owner of the property still has a loan on it then will they automatically be released from the mortgage if they pass it to the other party?
what about liens and tings....if di person weh pass on di property to the other party defaults on an account will they still be able to put a lien on the property if them sign it ova to another party?
if dem have lien on it before will the new possessor of the property have the responsibility to pay it off?
what are the general tax implications like?Comment
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Re: Quitclaim Deed
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Skelly</div><div class="ubbcode-body">yes...say the owner of the property still has a loan on it then will they automatically be released from the mortgage if they pass it to the other party?
what about liens and tings....if di person weh pass on di property to the other party defaults on an account will they still be able to put a lien on the property if them sign it ova to another party?
if dem have lien on it before will the new possessor of the property have the responsibility to pay it off?
what are the general tax implications like? </div></div>
If the lien is against the property, then lien/obligations follows the property.
There is no inherent obligations to the new owner to pay off the lein if the previous owner does a quit deed to them. The obligations stays with the PROPERTY.
If there is a default of the payment to the mortgage holder, who ever qualified for the mortgage in the first place, screws up their credit. However the new owner can lose the property in foreclosure action by the lien/mortgage holder.
So NO the old owner does not automatically get released from the obligation by quit deeding the property to someone else.
Also remember there may be multiple paper holders on a property.
However if the old owner quit deeds the property to the new owner, then the expectation would be that its a gift or family transaction (adding name, etc) so no new liens expected.
Seems the old owner may want to register a lein against the property if/when they quit deed it? If so their lien would be in 2nd position (if only one other mortgage exist) So the first position holder would have claim over the. I;m not sure if the grantee in a warrant deed (which is how that peoson may had aquired the property) can register a lein against the property anyhow. That part mi not sure of..
since quit deed (unlike Warranty Deed) tends to be between family and to "gift" property, there are some tax exemptions which makes the tax implication minimal. So far I've not had to pay more than $100 at the court house, and during irs time, well we in a recession, u generally can get around the equity issue..
Now trying to avoid being too technical, before aquiring a property, u should always do a title search, and ensure that the property come with a clean title and title insurance (usually abot $120). However again since this is a quit deed, I'm guessing you are aware of any and all leins.
A little loophole exist.. I dont remember the name of the law, but if no relase of mortgage is recorded against a property, and 7 years elaspe with no attempt from the lein holder to collect the mortgage, then the new owner can petitoion for for the title to be free and clear.
Nuff people aquire property thru auctions.. Remember most court house auctioned properties will NOT carry a clear title, so the obligations of the property travels with the property (I think REDC is one of the few auctions that carry clear title, but they charge fees amounting to no less than $2500).
MLS listings however tend fi carry clear title and usually have title insurance.
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Re: Quitclaim Deed
thanx dude
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