Investing in Real Estate

Back to the Basics: What is a Quit Claim Deed

A Quit Claim Deed (QCD or Quitclaim Deed) is a deed used to transfer the interest in real estate from the owners (grantor) to you the investor (the grantee). While sometimes referred to as a 'Quit Deed' or 'Quick Claim Deed', both these are technically incorrect. The flexibility of a QCD makes it the most commonly used instrument in the foreclosure flipping industry. To be legally binding and effective you might have a signature of the grantors, legal description of property being conveyed, payment paid (consideration), and in many jurisdictions the signature of a Notary Public.

Now before we go too far - I must inform you - Quitclaim Deeds do have an important limitation: they only transfer the rights that the grantor has in the property, it does not guarantee that the grantor actually owns the property in full or in part. If someone else has interest in the property and you fail to get their signature, you interest IS NOT transferred to you. Make sure you do your homework first! If you are looking for a guarantee you would be better served with either a Special Warranty Deed or General Warranty Deed; but they do come with additional complexities and you loose the flexibility provided by a QCD in the process. -- I will cover this in another article --

A typical QCD will look similar to the following:

QUIT-CLAIM DEED Return to: ABC Investments 123 Main Street Anytown, FL 55555 THIS QUIT-CLAIM DEED dated the first of June, 2008 by John Doe, a single man, of 456 Broad Street, City of Clearwater, County of Pinellas, State of Florida, with a postal zip code of 55555, hereinafter called GRANTOR; TO ABC Investors, of 123 Main Street, Anytown, FL 55555, hereinafter called GRANTEE; (Wherever used herein, the terms "Grantor" and "Grantee" include all parties to this instrument and the heirs, legal representatives, and assigns of individuals, and the successors and assigns of corporations.) WITNESSETH, GRANTOR, for good and valuable consideration, receipt of which is hereby acknowledged, hereby grants, bargains, sells, aliens, remises, releases, conveys and quit-claims unto GRANTEE, forever, all the right, title, interest, and claim that GRANTOR has in and to the following described land situated, lying, and being in Pinellas County, FL, to wit: JUANITA WAY G-22 PB 54 PGS 1-4 LOT 4 TO HAVE AND HOLD the same, together with all and singular the appurtenances thereunto, belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity, and claim whatsoever of the said GRANTOR, either in law or equity, to the only proper use, benefit, and behalf of the said GRANTEE, forever. IN WITNESS WHEREOF, GRANTOR has signed and sealed these presents the date set forth above. GRANTOR SIGNED: ___________________________________ Print Name: John Doe WITNESS #1 SIGN: ___________________________________ Print Name: ___________________________________ WITNESS #2 SIGN: ___________________________________ Print Name: ___________________________________ STATE OF FLORIDA COUNTY OF PINELLAS The foregoing instrument was acknowledged before me this June 1, 2008 by John Doe, who is personally known to me or has produced _____________________ as identification and who did take an oath. WITNESS my hand and official seal, this [DATE]. ___________________________________ NOTARY PUBLIC My commission expires ________________. [NOTARY SEAL]

Just a final note and that is a few foreclosure management systems such as Real Estate Pro handle the document and contract creation process automatically for you including the importing of names and property details into the contract being generated. This will save you the time and hassle of presenting a contract with clerical errors in it and having to rush back to your office to get them straightened out. Not my favorite way to suffer though the process of executing a QCD or any other contract, for that matter.