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We are in the process of selling our home. The title insurance company has asked us to get a new deed notarized. Here's the background:
State: AZ
Home was purchased two years ago. It was a foreclosure purchased from a bank.
Home was purchased by my parents, in their name.
We purchased home from my parents two months later, had a deed notarized, filed with county clerk.
Now that we are selling, title ins. co. wants a new deed notarized.
When my parents purchased the home from the bank, it came with title insurance (I have all the paperwork).
My question is this: is another deed necessary? Will it be a problem for me down the road that there are two deeds on this home? They both say the same thing (my parents selling the home to me - so the deed is signed by them and by me). No one has been able to explain to me why there need to be two deeds. Additionally, will the new deed, which would carry a current date, make it seem like the title/sale happened now, instead of two years ago? I don't mind going through the motion, but I just don't want any negative repercussions (affecting taxes paid on the home, etc.)
You need to ask the title company why they are requesting a new deed. Perhaps there was some issue with the signatures but that's pure speculation on my part.
First of all, a Deed is merely the written instrument used to convey title. With an older house, there are usually multiple Deeds recorded to show changes of ownership--the chain of title.
In some cases, the wording on a Deed may be deficient in some manner. Another Deed--often a Quit Claim Deed--can be used to clear up those deficiencies.
You simply need to ask the title company why they feel that a new Deed is needed.
EDIT:
Quote:
Originally Posted by Angelcake4
We are in the process of selling our home. The title insurance company has asked us to get a new deed notarized.
Are you sure they're not just asking you to execute a new Deed to the purchaser?
Last edited by jackmichigan; 07-18-2013 at 09:24 AM..
Definitely need more information. Why is the title company asking for a new deed? Was there a problem with the deed you used to transfer from your parents to you? Was it a Quit Claim Deed? Was it properly executed? Are they asking for a correction?
From my experience with title companies, they can usually execute a Quit Claim Deed and the new Warranty Deed (for the sale of the home to the new owners) back to back at closing to correct the title chain. It should be no big deal, unless you cannot get your parents to sign the corrected deed, again.
Definitely need more information. Why is the title company asking for a new deed? Was there a problem with the deed you used to transfer from your parents to you? Was it a Quit Claim Deed? Was it properly executed? Are they asking for a correction?
From my experience with title companies, they can usually execute a Quit Claim Deed and the new Warranty Deed (for the sale of the home to the new owners) back to back at closing to correct the title chain. It should be no big deal, unless you cannot get your parents to sign the corrected deed, again.
Yes, this is probably it. Yes, I can get my parents to sign the corrected deed, no problem.
I'm glad to hear that it is not that rare and no big deal.
Yes, this is probably it. Yes, I can get my parents to sign the corrected deed, no problem.
I'm glad to hear that it is not that rare and no big deal.
Just curious--do you know what the issue was with the old Deed?
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