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I'm a total newbie to buying land. I read that if someone is selling land and they have a quit claim deed do not buy from them. Is this the case? I read this:
"But the quitclaim doesn't guarantee that you actually have any ownership interest. In theory, you could give someone a quitclaim deed for the White House or any other piece of property because essentially all the quitclaim says is, "If I have any claim on this property (and I'm not saying that I do), I'm giving it to you."
How can it be legal transferring property that someone doesn't actually own sounds odd to me
You heard right- it's best not to buy a property with a quit claim deed.
Quit claims have a place, they're often used to transfer property among family members. They can be used by a single entity transferring a deed to itself. Example, you own property and and are setting up a trust for yourself . Then you can quit claim the property to yourself. Often people divorcing will quit claim an ownership interest to the other. There are a couple of other instances also.
When you don't want to deal with a quit claim is when property is being sold or has an exchange of ownership among strangers. Then you want to use a warranty deed.
Protect yourself. Buy smart. Make sure you're getting clear title to whatever you may be considering buying. Get a warranty deed from the seller and make sure you can get title insurance on it.
I read that if someone is selling land and they have a quit claim deed do not buy from them.
That's probably the best course of action. If someone transfers property to you via a Quit Claim Deed, they are not warranting that they have good and marketable title, even though they are transferring all of their interest in the property (if any, that's the catch). So, if you find out something is deficient with the title after you purchase the property, you have no recourse against the seller (grantor).
With a Warranty Deed, the grantor is giving assurance that they own the property free and clear and that they will stand behind that warranty. The only problem is that even with a Warranty Deed, you would need to go after that person to correct any deficiencies in the title if they should subsequently be discovered. The grantor may disappear or be financially unable to correct the deficiencies. That's why title insurance plays such an important role in today's real estate transactions. With title insurance, you need not go after the grantor because the title insurance company will work to correct the deficiencies or compensate you for any loss if need be.
Can a buyer's lawyer convert a Quitclaim to Warranty? If not, why pay him to search the title?
No, a lawyer cannot convert an already-conveyed Quit Claim Deed into a Warranty Deed, but an attorney may insist that a Warranty Deed be conveyed in the first place.
Either an attorney or a title company should research the chain of title because it will determine if there are problems with the title that need to be cleared up. Just because a seller gives a Warranty Deed does not guarantee that there are no problems with the title.
The owner may have acquired it through a quit claim deed, but when they sell it they can give you a warranty deed.
Quit claim deeds, are often used between family members, etc.
Insist as mentioned above, that there is title insurance when you buy. The title insurance guarantees the title coming from the seller is valid, and they will fight to make sure it is at their expense.
Get a title search to see if the seller actually owns the property. May own nothing or be a partial owner. Demand a title policy and a warranty deed. Quit-claim deeds are often used to clear the title. Example, John Doe bought and sold a property, but Mary Doe, his wife didn't sign when he sold, so,she would execute a quit-claim deed to clear the title even though the property was only in his name.
Can a buyer's lawyer convert a Quitclaim to Warranty? If not, why pay him to search the title?
So you have an idea what you're up against:
1. Seller does not have any interest to sell (doesn't own it);
2. Seller has many liens against the property;
3. Property is actually under water - literally at the bottom of a newly formed lake;
4. whether the defects can be fixed.
That's why you have a title search done. Or you just pass on the property altogether.
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sounds odd to me
