QUESTION
Is a quit claim deed equivalent to a deed?
Asked on Sep 02nd, 2014 on Landlord and Tenant Law - Michigan
More details to this question:
I have a few questions and would really appreciate your help. My mother transferred one of her townhouses in Ann Arbor to me and my husband a few years ago and she signed a Quit Claim Deed document. 1) Typically, when I purchase a condo or a house, I would receive a Deed document from my real estate attorney, but in my case, is the Quit Claim Deed document the equivalent of a Deed? In other words, when I am required to present proof of real estate ownership in the future, may I present the Quit Claim Deed document and it will have the same legal right as a Deed? I would prefer to get a formal Deed document if I can but I don't know where to get one? 2) Also, I am not sure if anyone has already performed a title search to make sure that the title of this townhouse is clear? I assume that when my Mom bought the townhouse, the title search was done and the title insurance has already been bought but she is in her 60’s and she says she doesn't remember all the paperwork that took place. If she bought title insurance, will the title insurance transfer over to my name? I guess I can always ask a real estate attorney to perform a title search and buy me another title insurance if there is no way to find out. Thank you so much.
4 ANSWERS
Real Property Law Attorney serving Owosso, MI
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Moorhead & Moorhead PLLC
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In Michigan there are two basic types of deeds: Warranty Deed and Quit Claim Deed. With a Warranty Deed, the seller or person transferring the property warrants or guarantees good title. A Quit Claim Deed conveys whatever interest in the property the seller or person transferring the property has (it could be nothing). There is no guarantee. When there is a conveyance between family members without consideration, Quit Claim Deeds are generally used. Title insurance does not transfer. You should obtain a new title search to confirm your ownership and to make sure that your mother had good title when she transferred to you and your husband. Do it now because if there are defects it is easier to resolve the same during your mother's lifetime.
Answered on Sep 04th, 2014 at 9:31 AM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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A quit claim is a deed.. but its a specific type of deed..A quit claim only transfers what the grantor owned.. so if the grantor owned it all free and clear you would own it free and clear if the grantor owned it subject to a mortgage you would own it subject to the mortgage. if the grantor does not own anything a quit claim would transfer nothing.. Further at this time you do not need title insurance.
Answered on Sep 03rd, 2014 at 4:43 PM
When you refer to a Deed you probably mean a Warranty Deed. The only difference between a Warranty Deed and a Quit Claim Deed is that in a Warranty Deed the grantor is warrantying to the grantee that the document conveys title to the grantee free of liens and encumbrances other than as noted in the Deed. With a Quit Claim Deed, the grantor is not making any warranty of title. Instead, the Quit Claim Deed simply conveys any interest the grantor has in the property to the grantee. Bottom line: the title the grantee gets is the same whether the conveyance is by Warranty Deed or Quit Claim Deed, but, with a Warranty Deed, if the grantee doesn't receive the title expected, the grantee has a claim against the grantor. With a Quit Claim Deed, there's no claim against the grantor.
Answered on Sep 03rd, 2014 at 12:14 PM
As always this is general info not to be relied upon as legal advice without much more info being provided to take into account but as a general rule here are some general answers to start from. Yes a quit claim deed is a valid enforceable legal deed. You dont need to convert it into anything except to make sure it is filed & recorded with your county register of deeds in the county where the property is located. The common deed forms are warranty & quit claim. The difference is just the assurance given by the grantor to the grantee regarding the title they are transferring. ?Warranty deed means grantor (seller) is guaranteeing they own titlle to the subject property they are transferring to grantee (buyer). Quit claim effectively means seller is making no promises regarding their interest in the property being transferred but whatever they own of the property - if any - they are transferring to grantee. If mom can't recall where paperwork from purchase is maybe she recalls who real estate agent or title company was...if so contact them & hope their records are inorder. No mom's title insurance does not transfer to you. To be protected you should buy your own title insurance (if you have mom's policy, she can turnit infor a credit against your policy premium). Usually much cheaper to buy ins urance than to hire real estate attorney to perform title search. If unsure hire attorney to cover all these points in more detail & apply info to your specific property.
Answered on Sep 03rd, 2014 at 12:14 PM