Question about Quitclaim Deeds in AZ retirement communities (Sun City: for sale, real estate)

[ILikeEveryone]

I get the listings for Sun City properties each day. I see a lot of properties listed with quitclaim deeds. From what I remember from Real Estate 101 seven years ago, a quitclaim deed conveys no covenants or warranties or any true title to the property. So why would anyone buy a property without a warranty deed?

Is this done to transfer title to family members when a parent is sick and goes into a nursing home? Is it possible to get a quitclaim deed changed to a warranty deed, and if so does it break the chain in the title, and how does this affect a purchaser's title? Or does it? I just remember that the only deed you want is the warranty deed.

Thanks for any help.

[wit-nit]

Quitclaim Deed only relinquishes someone's interest in the ppty. All other aspects of the sale should be the same, title, warranty etc. Check with a realtor or title company for detailed information.

[Zippyman]

I believe sun city has some hefty fees that need to be paid at any change of ownership (Capital Improvement fees?).

If I remember correctly they're around $2k - so I wonder if the quit-claim deed might be a scheme to avoid paying those fees.

A condition of title insurance would be paying those fees, and any title company would insist that they be paid prior to transfer,
But anyone can just file a quit claim with the county & (delay) paying the transfer/doc/capital improvement fees.

If they had a well (weasel-worded) purchase agreement, the purchaser might even get stuck paying them twice, because there were two transfers of the property.

A quit-claim deed is otherwise just as valid as any other deed, and it's often used between family members, where you know there's no monkey business going on, but I wouldn't accept one at retail pricing from someone I didn't know.

Quit-claiming moms house into your name a week before she goes into a nursing home won't protect the asset (there's a "look back" period - I suppose there are still people who try that, but it won't work - the IRS would come calling as well. There is something called a "lady-bird" deed that kinda does the same thing, but it needs to be done years in advance.

You can still issue a warranty deed after a quit-claim, but you should expect the title company to dig a little deeper than normal before they will issue a title policy.

[wit-nit]

The Capital Preservation Fee is $3000.00. A Quitclaim Deed just relinquishes one's right to ownership. It's my understanding in SC if a ppty is quitclaimed to an heir and they, the heir, immediately live in it they must pay the Fee as new owners. If it was quitclaimed just before the death of the owner and the heirs put the ppty immediately up for sale then the fee is paid at the time the ppty sells and is transfered to new owners. Whomever at any time moves in as a new owner the fee must be paid at escrow time.
Some local atty's or realtors may want to elaborate more on this.

[ILikeEveryone]

Thank you. Yes, the transfer fee or capital fee is $3,000.

Here's a kind of crazy question. I have watched the housing market in general in PHX area getting better and better since 2011 with house prices steadily going up. Do you think that this is the case in Sun City as well and will this trend continue? (Crystal ball required here.)

DH & I LOVED Sun City. We have a couple of years before we could live there as we are too young. Would it be crazy to buy now while the prices are still low and wait a couple of years to move in? We are not rich people, and would have to obtain a mortgage with not a lot of money down and not a heck of a lot of savings, but we are well qualified, employed, and do own our home.

I just got my first issue of Atomic Ranch magazine today and it shows, lol. Thanks.

[jodipper]

I think the people I bought from tried something like that. At my closing they had the Sun City money subtracted from what they received.

[Jkgourmet]

A quitclaim is also a tool to protect assets in the situation of a second marriage. For example, Mary owns her home. Mary has children and wants them to inherit that home (either so they can live in it or sell it for the cash). Then Mary meets John and they get married. John signs the quitclaim so he has no legal right to the house

John should also see a good estate lawyer so he's not out on the street if Mary dies before him and Mary's kids want him out.