How to do a Quit Claim Deed in Florida:
What is a Quit Claim Deed?
Why is it important to to know how to do a quit claim deed in Florida? I’m going to share this information with you and when we finish, you’ll have knowledge that will help you make more money and less errors. After all, sometimes not having knowledge can bite deeply into your assets. Quit claim deed is a perfect way to protect yourself when you are a party issuing the quit claim deed.
Many investors and non-investors are confused and misunderstand this phraseology and they say “quick” claim deed. I’ll tell you there is nothing about this process that is quick or fast. The correct word is QUIT which means stop, pause and in real estate it means grantor release.
I’m not an attorney or a CPA or a real estate broker. I am a prepared entrepreneur and experienced tax lien certificate and tax deed investor.
For clarity, I would like you to read the following statement from a book I wrote in 2004.
“Quit claim deed – a deed operating as a release intended to pass title, interest, or claim which the grantor may have in the property but not containing any warranty of a valid interest or title in the property.”
Another way of putting it, as cited in Investopedia: “A quitclaim deed releases a person’s interest in a property without stating the nature of the person’s interest or rights, and with no warranties of that person’s interest or rights in the property. A quitclaim deed neither states nor guarantees that the person relinquishing their claim to the property had valid ownership, but it does prevent that person (the grantor) from later claiming they have an interest in the property.”
An example of a quit claim deed is when a marriage is dissolved and assets must be divided. One spouse will quit claim to the other spouse.
For example, the home where they are raising children is a special place not only for the family but for the growing children. They are attending schools. And this is where all their friends and social life revolves. Everything about their life revolves around their home. And it would be a major disturbance to break up a family unit and require everyone to move to a new location.
With this in mind, one spouse will quit claim their interest in the property to the other spouse. For example, the husband could quit claim his interest to the wife. In simple terms, he is giving up any interest in the property.
This is a simple process and a quit claim deed could be produced by a local attorney or on many of the legal websites on the internet or you could hire an attorney to do the process. Once again, I’m not giving legal advice. I’m trying to make you aware of the power of the quit claim deed.
How to do a Quit Claim Deed in Florida:
A Word of Caution
The challenge I found with the quit claim deed is as follows: Most people don’t understand what is happening with the transfer of the ownership of property. Simply stated, when you quit claim you are giving up any interest you have or you thought you may have had in the property.
The biggest benefit of this lesson I’m giving you right now is that I’m going to share with you what most real estate investors do not understand. And this will save you from making errors.
Investors need to be prepared. I’ve learned more from my mistakes than I’ve learned from always doing thing correctly. There is nothing profound about mistakes. So, let’s try to avoid them.
A quit claim deed is a legal document so it’s wise to discuss these matters with an attorney.
Today I caution my tax deed investors and ask them to pay close attention to the type of deed they receive from others especially from a local county government.
For example, most counties will transfer a property after the tax defaulted auction. And more than likely, they will use a treasurer’s deed. Maybe a quit claim deed. Maybe a sheriff’s deed.
It’s wise to read the deed. On the deed, it will be printed and more than likely, you wouldn’t notice this, but more than any other kind of deed, no matter what the name, it probably says this is a quit claim deed.
If you received a quit claim deed, which I think you will, the county has just transferred a property to you. And the county has disclaimed any responsibly for the property condition. And for the title issues which might be survey, it might be challenges like other defaulted taxes.
There is possibility of federal liens you don’t know about. Notice I said the county has disclaimed all responsibilities – Ouch! Please don’t ask me how I learned that.
How to do a Quit Claim Deed in Florida:
Buyer Beware
Its buyer beware. The county official may not have any idea about the process of title transfer or other delinquent mortgages. That doesn’t mean they have done things correctly. However, they have disclaimed all responsibilities. What’s my point?
The point of this part of the lesson on how to do a quit claim deed in Florida is you may be required to quiet the title which is a legal process conducted by a trained and experienced (those are 2 important words) attorney.
In your real estate investment journey, how to do a quit claim deed in Florida doesn’t need to be complicated. There are some potential risks however, so I encourage you to consult a professional for advice as you proceed.
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