Randy Hillman wrote a very interesting piece for the Osceola Board of Realtors monthly magazine explaining quit claim deeds. Here are a few excerpts from his article.
- Quit claim deeds are the worse way to receive a transfer of property
- A seller who executes a quit claim deed is not representing that he owns the property, he is only representing that if he owns it, he is transferring it to the buyer.
Transferring property is not something that most people can do for themselves. Florida statutes are very specific about requirements for a deed to be valid. You should ask an attorney to assist you or make sure that you are working with a title company and have title insurance, which offers protection when property is transferred.
Related Florida real estate views:
Buying a home subject to financing
Should you buy a home in "as is" condition?
What are the repair obligations to the home seller when using the FAR contract?
- Greg Staker - Watson Realty Corp. - 407-304-0255
4 comments:
This past weekend, my husband and I had our realtor give a written offer to the selling agent on a house we wanted to buy for our next home. The selling realtor informed her that there was a fourth person she works with who has "quit claimed" the property. He gave us his terms through this realtor: the contract would be written to his name, 120 days to close, no pending contract (I understand that to mean the house stays on the market so he can take more offers), and he wanted a $2,000 non-returnable deposit. We were told this person has his name on the deed, although the original owner still has to pay the mortgage. The selling realtor has 35 houses she is working on with this guy. Our realtor told us that she thinks the selling realtor is taking the easy way out and letting this guy do all the legwork. Is there anything we can do to reveal this scam? It sounds like this guy is taking advantage of distressed homeowners (we heard that the original owner was recently divorced and lost a son to a car accident the day before she had to move out) and then scheming to squeeze as much money from potential buyers, like us or investors, as he can. By the way, he's also supposed to make money ($5,000 +) from the bank on these deals!! Is this behavior acceptable in Florida real estate?
Roberta in FL
I cannot comment specifically about your situation since I am not directly involved with the transaction.
As the buyer you have the right to consult with legal counsel to determine your rights, remedies, and obligations under the contract.
Consumers can file a complaints here: http://www.800helpfla.com/complnt.html or here, http://www.myflorida.com/dbpr/re/complaint.html
Just so you know, we did not continue pursuing this house once we heard this guy's terms. We did not sign a contract with this man.(I forgot to tell you this was a Short Sale.) We withdrew our offer and walked away immediately.
Can you please comment about the abuse of quit claims in Florida generally? Have you ever heard of realtors teaming up with people who obtain quit claim deeds from distressed house owners who are about to foreclose, and then make special deals with banks to sell the property, but use the whole process to benefit themselves?
Unfortunately in markets such as we are experiencing there are opportunities for home owners and buyers for that matter to be take advantage of.
Florida just passed House Bill 643 which is called by some the foreclosure fraud. This bill is supposed to protect home owners from unscrupulous people looking to take advantage.
I hope you are able to find another home you like and a seller you are able to deal with.
Oh and thank you for visiting my blog.
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