A Quitclaim Deed (QCD) is a deed used to transfer the interest in real estate from the owners (grantor) to you the investor (the grantee). While sometimes referred to as a 'Quit Deed' or 'Quick Claim Deed', both these are technically incorrect. The flexibility of a QCD makes it the most commonly used instrument in the foreclosure flipping industry. To be legally binding and effective you might have a signature of the grantors, legal description of property being conveyed, payment paid (consideration), and in many jurisdictions the signature of a Notary Public.

Now before we go too far - I must inform you - Quitclaim Deeds do have an important limitation: they only transfer the rights that the grantor has in the property, it does not guarantee that the grantor actually owns the property in full or in part. If someone else has interest in the property and you fail to get their signature, you interest IS NOT transferred to you. Make sure you do your homework first! If you are looking for a guarantee you would be better served with either a Special Warranty Deed or General Warranty Deed; but they do come with additional complexities and you loose the flexibility provided by a QCD in the process. -- I will cover this in another article --

A typical QCD will look similar to the following:


QUIT CLAIM DEED

THIS QUIT CLAIM DEED dated this the 25th day of May, 2008 by

John Doe and Jane Doe, husband and wife, whose post office address is 123 Main Street, City of Clearwater, County of Pinellas, State of Florida, and Postal Zip Code of 55555 hereinafter referred to as GRANTOR, to

Your Name, whose post office address is YOUR ADDRESS HERE hereinafter called the GRANTEE:

(Wherever used herein, the terms “Grantor” and “Grantee” include all parties to this instrument and the heirs,
legal representatives, and assigns of individuals, and the successors and assigns of corporations.)

WITNESSETH, that GRANTOR, for good and valuable consideration, receipt whereof is hereby acknowledged, hereby grants, bargains, sells, aliens, remises, releases, conveys and quit-claims unto GRANTEE, forever, all the right, title, interest, and claim that GRANTOR has in and to the following described land situate, lying, and being in PINELLAS COUNTY, Florida, to wit:

LEGAL DESCRIPTION

also known as street and number as address 123 Main Street, City of Clearwater, County of Pinellas, State of Florida, and Postal Zip Code of 55555 and Parcel ID Number: 55-555-555-55-55.

TO HAVE AND HOLD the same, together with all and singular the appurtenances thereunto, belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity, and claim whatsoever of the said GRANTOR, either in law or equity, to the only proper use, benefit, and behalf of the said GRANTEE, forever.

IN WITNESS WHEREOF, GRANTOR has signed and sealed these presents the date set forth above.




A few items to keep in mind when making your Quit Claim Deed:
1. Do your research and make sure you have the signatures of ALL interested parties.
2. If the grantors are married, or where married, you must state whether or not they are husband or wife, else you will have to track them down some time in the future and get an a Divorce Certificate or Affidavit of Continuous Marriage (yip, I know this from personal experience).
3. Most banks will notarize documents for you free of charge if you are a customer otherwise they charge $5 - $10 for this service.
4. Most UPS Stores can handle this for you if you need to get a signature from someone who is out of state. They can receive your document, have the signer come to the store, sign your QCD, notarize it, and send it back to you. You can even call the UPS Store up ahead of the time arrange to have the documents emailed to the store, they will print and notarize them when the grantor shows up. Of course you must pay for this service, usually around $100 when you include all fees, but it has saved me many times!
5. Get a competent attorney or at least a title agent to verify your documents. Many title agents will help you out as long as your bring the closing work to them.

Just a final note and that is a few foreclosure management systems such as Real Estate Pro handle the document and contract creation process automatically for you including the importing of names and property details into the contract being generated. This will save you the time and hassle of presenting a contract with clerical errors in it and having to rush back to your office to get them straightened out. Not my favorite way to suffer though the process of executing a QCD or any other contract, for that matter.

here's the risk that most people dont even mention

a real estate agent/realtor that's involved with an investor or buyer in getting a quit claim deed is an ethics violation. why? because title is being compromised due to an unauthorized title transfer which triggers the lender's due on sale clause as well as triggering a tax reassessment.

in the creative investing world, its called taking over sub2 or subject to the existing mortgage, financing, liens, and responsibilities of maintaining the property while the homeowner's name is still on the loan. its a good way to acquire a property with no credit, no down, no new loan, no bank qualifying.

alvin i have heard that before about quitclaim deeds. one question is why does some real estate commission approved purchase agreements have options for subject to or owner financing?

Actually that is from the other side of the deal. A Purchase Agreement 'Subject-To Financing' refers to the purchaser applying for and obtaining financing through a bank of his choice. Or stated more accurately, he/she is placing an offer to purchase the property, if and only if (subject to) his ability to receive financing from the bank.

When I was speaking about purchasing properties 'Subject-To' what I was referring to was purchasing the property by assuming the monthly payments of the current mortgage. This leaves the mortgage in the name of the current (soon-to-be) previous owner.

While I am not advocating the breaking of any laws, check with your local municipality; many allow for the transfer of ownership out of the name of the current owner into a land-trust for estate purposes. In many cases this will not trigger a payment upon demand clause as previously mentioned.