What Happens if You're Buying a Property That Has a Quit Claim Deed & You Have to Get Title Insurance?
Using a quit claim deed is a common and simple way to transfer property to or a revocable living trust. Learn what to do if you're buying a house that has a quit claim deed and you have to get title insurance with help from a licensed California real estate broker in this free video clip.
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What happens if you're buying a property that has a quit claim deed and you have to get title insurance? Hello, I'm Jack McLaughlin, licensed broker and president of My Broker Donates. Today, we're going to talk about getting title insurance when there is a quit claim deed. And, as always, I want you to remember the first rule of real estate: no surprises. The experts at Nolo Press tell us that there are many reasons you might want to transfer your real estate to another owner. Using a quit claim deed is a common and simple way to transfer property to or from a revocable living trust to one spouse, as part of a divorce settlement, to settle ambiguities about inherited property, and much more. So, what if there is a quit claim deed on title and you want to purchase title insurance? According to Cathy Gaidano of Old Republic Title, if the deed is uninsured, meaning, it was recorded outside of an escrow, then yes, we would want either a new deed executed, or an estoppel affidavit. There may be an exception if one spouse wants to deed her interest to the other, as part of a divorce settlement, eliminating spousal interest, and an attorney recorded the quit claim. I'm a real estate broker and not an attorney, and I am not qualified to give legal advice. You should seek the advice of a professional attorney. Regulations may vary substantially between communities. Ask a local Realtor is you have questions. If you like, we can connect you with one, free of charge. Thanks for tuning in, and remember, have fun with real estate.