I’m Ted Thomas, and today I’m going to answer your question, “Can I do a quitclaim deed myself?” Meanwhile, I’m also going to give you answers on how to make money with tax deeds and tax lien certificates
I’ve been teaching this for 25 years, but I need to start out by telling you I’m not a CPA, attorney, or broker. I’m going to tell you about quitclaim deeds. However, I can’t give you legal advice, so you might want to see an attorney.
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What Is a Quitclaim Deed?
What is a quitclaim deed? It’s a legal instrument used to transfer your interest in the property to someone else. You’re going to be the grantor, and you’re going to have a grantee. Once you’ve executed it, which means signed and registered it at the county, it’s now a legal document.
What are the repercussions of a quitclaim deed? If you use a quitclaim deed, you’re disclaiming any ownership or anything that could be wrong with the property. You’re disclaiming that and quit claiming the deed to the other person.
Quitclaim Deeds on Tax Defaulted Property
If you buy a property at a tax defaulted auction, what kind of deed do you think the county is going to use to transfer the property to you?
What the county is probably going to do is give you a sheriff’s deed, treasurer’s deed or a quitclaim deed, and all of those deeds are going to disclaim any problems on that property.
When the auction takes place, the county wipes out the mortgage and judgments, but that doesn’t mean you bought a clear title. There might be other problems.
Clearing the Title With a Quiet Title
Tax properties always have something wrong, and now the county is transferring it to you with a quitclaim deed.
That doesn’t necessarily mean there’s anything wrong, but it does mean you’ll have to go through a process to clear up any issues on the title.
This process is called a quiet title, and an attorney has to do that. You can’t do it.
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Selling Property With a Quitclaim Deed
Now you bought a property and they disclaimed any responsibility. Well, the way I do business is I buy them low because tax defaulted properties are discounted at 60%, 70%, or 80% or more. I try to buy it at 20 cents on the dollar and sell it for 40 cents on the dollar.
If I’m going to pass on all that profit and margin to the next person, I can say, “I’m going to give you a quitclaim deed,” and they’re going to have to do the quiet title.
Hire an Attorney
Are you going to do all of this? Forget about that. You’re not going to do this. You’re going to get an experienced attorney because you bought a property, and they’re disclaiming any interest.
You want to either do the quiet title, or you want to disclaim any interest when you pass it on.
Everything’s honest and ethical. There’s nobody trying to cheat anybody. When you buy tax properties, you are going to have to do some work, and most of that work is doing research.
Can You Get Your Money Back From the County?
What if you’re the winning bid at a tax deed auction, you get the title search done and something’s wrong. Can you go to the county and get your money back?
If there is some defect, whether in the title report or paperwork, and you have already paid the county, then you own it. You own the problem.
However, think about it. If you have a property worth $100,000 that you bought for 20,000, do you want to give it back to the county or go through the process of cleaning up the mess?
Whoever cleans up the mess is going to make the profit.
How Can I Do a Quitclaim Deed Myself?
If you’re wondering, “Can I do a quitclaim deed myself?’ due to the legal repercussions, it would be prudent to hire an attorney, particularly if the property was transferred to you via a quitclaim deed.
In that case, you would want to either do a quiet title or sell the property using a quitclaim deed, which is more easily done if you purchased the property for a big discount at a tax sale and also sell it for a sizeable discount.
If you’d like to know more about tax delinquent property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
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