| Copyright 2005-2007 All Rights Reserved Charles E. Marunde & FreeRealEstateLaw.com |
| The Quit Claim Deed Trap |
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Unfortunately, sometimes using a Quit Claim Deed can result in disaster.
Many people use a Quit Claim Deed to transfer an interest in their real
estate, either to take a family member off the title, add a new spouse to
the title, or to add a child (their heir) thinking they will avoid probate.
Avoiding probate is good, and it is possible to use a Quit Claim Deed in
certain circumstances to accomplish that. The problem is that a little
knowledge can be dangerous, and even less knowledge can be
disastrous.
Case in point: Several year ago I received a call from a gentleman who
had purchased some vacant land as an investment. Since he planned to
leave it to his two sons in his will, he thought it would make sense to Quit
Claim his interest to his two minor sons. Not a bad idea if that was the
end of the story.
Years later, when he called me, his plans had changed, and he wanted to
sell the vacant property. Its value had substantially increased. He
thought he could just sign the Quit Claim Deed for his sons, like he did
earlier when he signed it to them. Legally in Washington he could not do
that. He had once transferred his right, title, and interest to his two sons.
Only his two sons could transfer it back to him. Since his sons were
minors, they could not legally execute a Deed.
To accomplish this, he would have to retain an attorney to commence a
case to petition the Superior Court to appoint a legal guardian for the two
boys, and then persuade the guardian that it was in the boys' best
interest to transfer the property back to their father. Hmm.
All of that would most likely cost several thousand dollars, and take many
months because of the people involved and the court schedule. Using a
Quit Claim Deed is not always a good idea.
Beware of Traps for the Unwary!
Very truly,
Chuck Marunde, J.D.
Many people use a Quit Claim Deed to transfer an interest in their real
estate, either to take a family member off the title, add a new spouse to
the title, or to add a child (their heir) thinking they will avoid probate.
Avoiding probate is good, and it is possible to use a Quit Claim Deed in
certain circumstances to accomplish that. The problem is that a little
knowledge can be dangerous, and even less knowledge can be
disastrous.
Case in point: Several year ago I received a call from a gentleman who
had purchased some vacant land as an investment. Since he planned to
leave it to his two sons in his will, he thought it would make sense to Quit
Claim his interest to his two minor sons. Not a bad idea if that was the
end of the story.
Years later, when he called me, his plans had changed, and he wanted to
sell the vacant property. Its value had substantially increased. He
thought he could just sign the Quit Claim Deed for his sons, like he did
earlier when he signed it to them. Legally in Washington he could not do
that. He had once transferred his right, title, and interest to his two sons.
Only his two sons could transfer it back to him. Since his sons were
minors, they could not legally execute a Deed.
To accomplish this, he would have to retain an attorney to commence a
case to petition the Superior Court to appoint a legal guardian for the two
boys, and then persuade the guardian that it was in the boys' best
interest to transfer the property back to their father. Hmm.
All of that would most likely cost several thousand dollars, and take many
months because of the people involved and the court schedule. Using a
Quit Claim Deed is not always a good idea.
Beware of Traps for the Unwary!
Very truly,
Chuck Marunde, J.D.
