Buyer indicates that he wants to use a Quit Claim Deed

[tk3000]

Jurisdiction

Ohio

I own a property (condo) in Columbus, OH, which I am selling myself and put it on the market recently.
Have been contacted by a prospective buyer who indicated that he wants to use a "Quit Claim Deed" in order to transfer ownership of the property. At first, it looked odd; since my understanding is that a "Quit Claim Deed" provides no warranties or guarantees to the buyer regarding the title and possible liens.

What would be reasons for a buyer to want to use such an instrument to transfer ownership?

 

[army judge]

What would be reasons for a buyer to want to use such an instrument to transfer ownership?

"When would you use a quitclaim deed?"

When you don't know what you're doing.
When you can't guarantee to the buyer that you have the legal right to sell the property to them.
When you don't want to go to the expense of guaranteeing to the buyer that you have the legal right to sell the property to them.
When you're trying to engage in tax evasion. (This is a bad idea.)
There are three types of deeds used to convey ownership interests in real property:

(1) General Warranty Deed = Grantor promises there are no title defects.

This generally means the grantor promises that he has title to the property; he has the legal right to convey the property; there are no encumbrances against the property; nobody else has a lawful claim of title that could disrupt the grantee's use of the property; and a few other things.
(2) Special Warranty Deed = Grantor covenants that he, personally, didn't create any title defects, but doesn't promise anything about what prior owners might have done.

(3) Quitclaim Deed = Grantor doesn't promise anything at all. Grantor conveys whatever interest he has in the property — but doesn't make any promises about what that interest might be.

It's obvious why quitclaim deeds might be popular with sellers. The fewer guarantees the seller has to make, the happier the seller is. What is less obvious is why quitclaim deeds would be popular with buyers — or, more precisely, why any buyer in their right might would agree to a transaction involving a quitclaim deed at all. With this in mind, let's rephrase your question.

"Why would anybody agree to buy property by means of a document that doesn't guarantee to the buyer that the seller has the right to sell it?"

They wouldn't.

Transferring property by means of a quitclaim deed places a "cloud" on the title and makes it difficult to resell the property at a later date. For that reason, quitclaim deeds are rarely used in arms-length commercial transactions.

They're more commonly seen in transactions between family members, especially if the property is transferred by gift, rather than purchase. Another place you sometimes encounter them is in connection with property distributions incident to a divorce. People also sometimes use quitclaim deeds to transfer property to their own living trusts; in this case, the grantor and the recipient are essentially the same person.

Why would someone use a quitclaim deed on real estate? - Quora
....


Why Would Someone Use a Quitclaim Deed? - Policygenius


Quitclaim deeds, what are they and why are they a problem?

 

[welkin]

I own a property (condo) in Columbus, OH, which I am selling myself and put it on the market recently.
Have been contacted by a prospective buyer who indicated that he wants to use a "Quit Claim Deed" in order to transfer ownership of the property. At first, it looked odd; since my understanding is that a "Quit Claim Deed" provides no warranties or guarantees to the buyer regarding the title and possible liens.

What would be reasons for a buyer to want to use such an instrument to transfer ownership?

The only reason that I can think of that a buyer would want a quit claim deed is that it is step one in some sort of scam. You're selling the property yourself with no attorney involved. That would be dangerous.

Buyer may get the deed and don't get the money.

 

[adjusterjack]

Buyer may get the deed and don't get the money.

I think you meant "buyer may get the deed and seller doesn't get the money."

What would be reasons for a buyer to want to use such an instrument to transfer ownership?

I agree. It doesn't pass the smell test.

If you go through with this make sure you insist on using a title/escrow company so that funds can be collected and verified before the deed is recorded.

If buyer balks, it would be a good idea to decline the offer.

 

[zddoodah]

What would be reasons for a buyer to want to use such an instrument to transfer ownership?

This is a pointless question to ask to anonymous strangers on the internet.

Ask the buyer. Post here again when you get an answer.

However, at the end of the day, using a QC deed is to your benefit. Take measures to protect yourself, including insisting that the transaction be conducted through a legitimate escrow company.

 

[Tax Counsel]

What would be reasons for a buyer to want to use such an instrument to transfer ownership?

There isn't a reason a buyer would prefer a quit claim deed over a warranty deed. Thus my guess is that this buyer misunderstands what a quit claim deed does, as a lot of people do. As already suggested, make sure you handle the transaction properly to ensure you get the money when you execute that deed.

 

[tk3000]

adjusterjack, welkin & army judge:

First and foremost, thanks for all the input and insights.

Once I posted an ad to sell the property, I received lots of emails and texts from interested parts. At first, I am doing some basic assessment of the people who contacted me. I don't know that person and he has not seen the property -- likely I would not want him to see it anyways given that he may be some sort of criminal.

Anyway, I was curious and baffled as to why any buyer would propose to use a "quit claim deed" since it would not be in his/her best interest to do so.

Likely, an attorney will be involved once a potential deal is imminent.

 

[army judge]

likely I would not want him to see it anyways given that he may be some sort of criminal

Smart!!!

Despite what many believe, ONLY you can best protect YOUR interests and assets.

Always be aware of everything others say and do.

Be wary of those you allow near you.

Never conduct a real estate transaction without retaining the services of a real estate attorney.

Never take legal advice from ANYONE selling you something or buying something from you.

Many things in life require careful thought and preparation. Sometimes we need to be cautious and take precautions.

A great expression for that kind of behavior is, "An ounce of prevention is worth a pound of cure."

This saying comes to us from Benjamin Franklin. In addition to being a writer, Franklin was a printer, political thinker, politician, scientist, inventor and diplomat. He was also one of the Founding Fathers of the United States.

He was a busy man. Franklin still found time to write and offer his advice to others. If he were alive today, he could probably make a good living as a life coach.

"An ounce of prevention is worth a pound of cure," is one of his most famous sayings. Now, Franklin lived during the 1700s, before the metric system took effect in Europe. The word ounce means something really small – just two one-hundredths of a kilogram to be exact.

So, his expression meant that, when dealing with a problem, spending a small amount of time and effort early on is a good investment. It can save you more trouble in the end.

'An Ounce of Prevention Is Worth a Pound of Cure'
...

 

[tk3000]

This is a pointless question to ask to anonymous strangers on the internet.

Ask the buyer. Post here again when you get an answer.

However, at the end of the day, using a QC deed is to your benefit. Take measures to protect yourself, including insisting that the transaction be conducted through a legitimate escrow company.

Yeah, I asked him via email. Once I get an answer I will post back here.

 

[tk3000]

There isn't a reason a buyer would prefer a quit claim deed over a warranty deed. Thus my guess is that this buyer misunderstands what a quit claim deed does, as a lot of people do. As already suggested, make sure you handle the transaction properly to ensure you get the money when you execute that deed.

That is a good point. I have not cogitated or considered the possibility that maybe he was confused or maybe mistyped it. But, overall, it seems rather suspicious.

 

[tk3000]

Smart!!!

Despite what many believe, ONLY you can best protect YOUR interests and assets.

Always be aware of everything others say and do.

Be wary of those you allow near you.

Never conduct a real estate transaction without retaining the services of a real estate attorney.

Never take legal advice from ANYONE selling you something or buying something from you.

Many things in life require careful thought and preparation. Sometimes we need to be cautious and take precautions.

A great expression for that kind of behavior is, "An ounce of prevention is worth a pound of cure."

This saying comes to us from Benjamin Franklin. In addition to being a writer, Franklin was a printer, political thinker, politician, scientist, inventor and diplomat. He was also one of the Founding Fathers of the United States.

He was a busy man. Franklin still found time to write and offer his advice to others. If he were alive today, he could probably make a good living as a life coach.

"An ounce of prevention is worth a pound of cure," is one of his most famous sayings. Now, Franklin lived during the 1700s, before the metric system took effect in Europe. The word ounce means something really small – just two one-hundredths of a kilogram to be exact.

So, his expression meant that, when dealing with a problem, spending a small amount of time and effort early on is a good investment. It can save you more trouble in the end.

'An Ounce of Prevention Is Worth a Pound of Cure'
...


View attachment 4051

That really was inspiring!

In the past I read about the life, work and teachings of Benjamin Franklin. He was one of my favorite founding fathers.

The founding fathers were really visionaries with a deep understanding of human nature, human relations, history and philosophy. This country is so luck for having had them at such a critical time. Even though they were acutely aware of their own limitations and frailties as human beings; I tend to see them as angels that came from heavens to establish the founding of a great nation.

Unfortunately, the people currently in charge are the absolute diametrical opposite of all of that; and really seem to be hell bent on destroying the country.

 

[army judge]

That really was inspiring!

In the past I read about the life, work and teachings of Benjamin Franklin. He was one of my favorite founding fathers.

The founding fathers were really visionaries with a deep understanding of human nature, human relations, history and philosophy. This country is so luck for having had them at such a critical time. Even though they were acutely aware of their own limitations and frailties as human beings; I tend to see them as angels that came from heavens to establish the founding of a great nation.

Unfortunately, the people currently in charge are the absolute diametrical opposite of all of that; and really seem to be hell bent on destroying the country.

The God I serve has used flawed people from the beginning, as in Adam and Eve. Even those chosen centuries later were far from perfect: Moses, David, Judas, Solomon, Samson, Peter, Noah, Jonah, Mary Magdalene, Zacchaeus, Elijah, Gideon, Isaac, Jacob, The Samaritan Woman, The Prodigal Son, and even Hezekiah.

Our Founders were human beings, too. They laid our foundation, and our progenitors tweaked it. Some even died to preserve the freedoms we enjoy today. God bless them all, as well as all of our citizens who endeavor to preserve our magnificent gift.

 

[welkin]

I think you meant "buyer may get the deed and seller doesn't get the money."

Correct. I left out the word you as in you don't get the money..

 

[tk3000]

Just a follow up with the person's response:

"How are you doing today I'm about to start work now so about the *Quit Claim Deed* Well, have had an horrible experience with an agent or lawyer before now and I won't like to go through such thing again. This is how I do purchase my property. I would make a direct deposit to you once you confirm it I would come and we can go to the county together to get other things done because I want to buy the property for my mom . "

So, there is no doubt in my mind now that he is scammer and a criminal.

 

[adjusterjack]

Try this.

"Sir, I have also had horrible experiences so here's how I want to do it. You meet me at my bank with the purchase price in cash. I will make duplicates of the deed and have them notarized at the bank. Then I will go to the county and record the document."

(Not legal advice.)

 

[army judge]

Just a follow up with the person's response:

"How are you doing today I'm about to start work now so about the *Quit Claim Deed* Well, have had an horrible experience with an agent or lawyer before now and I won't like to go through such thing again. This is how I do purchase my property. I would make a direct deposit to you once you confirm it I would come and we can go to the county together to get other things done because I want to buy the property for my mom . "

So, there is no doubt in my mind now that he is scammer and a criminal.

Interesting, because that response reinforces my original conclusion that the UNKNOWN TO YOU person IS A SCAMMER, CHEAT, THIEF.

It's response reveals it is a very devious, rotten, dangerous beast.

However, it isn't coming after me, so whatever you choose to do, won't hurt hurt or harm me one, tiny bit!

Be careful citizen, the beasts are angry and hungry.

Honest, sane, reasonable, responsible people don't insist on doing stupid/dumb stuff that could cause them harm.

On the contrary, dishonest, criminal, devious, diabolical SCAMMERS will do and say ANYTHING that gets the MARK (that is you, OP) to do it their way!!!








Don't Quit Your Claim! A Quitclaim Deed Is Not a Mortgage Saving or Estate Planning Tool - Deeds.com
...

///////////////////////////////////////////////////////
The Use of Quitclaim Deeds in Scams
Unlike the warranty deed, the quitclaim requires no title examination process. There is no guarantee of clear title. Thus, scammers are drawn to quitclaim deeds to carry out transactions with assets that belong to other people.

Scammers may exploit the simplicity of quitclaim deeds. They may use these instruments to fraudulently convey property into their names or aliases. Some pose as personal representatives of estates to carry out the schemes.

Having recorded a fraudulent document, a scammer can sell the property without a warranty, rent it out to unsuspecting tenants, or obtain a loan on its value.

Today, online sources offer scammers ample information about properties and their owners' identities to facilitate such activity. Moreover, it is not difficult for a fraudster to go into a county courthouse and file a quitclaim deed behind the rightful owner's back.

Typically, under state law, a recorder of deeds lacks authority to review or deny recordation—even if something looks suspicious.

Thus, a fraudster with a quitclaim deed can quietly take away a rightful owner's property. Often, the victim's loss only becomes apparent much later, when an effort to sell the property hits a wall during the title examination. An innocent person then faces a lengthy, expensive legal action to set the ill-gotten deed aside and reestablish ownership of the property.

Elderly Targets
The elderly are often targets. Sometimes, the perpetrator is someone they know.

Caregivers, financial advisors, or family members could persuade the owner that signing over a deed makes financial sense. Sometimes, coercion or threats are used.

In other cases, someone fakes the elderly homeowner's signature and has the document notarized.

Sometimes the fraud is more complex. Fraudsters may ascertain that an elderly person failed to make tax payments. The scheme involves paying part of the tax debt to stop the home from foreclosing, then filing a lien on the property. Some use quitclaim deeds to transfer the title.

Other fraudulent practices involve locating elderly people's vacant homes or beach homes, exploiting the owners' long absences to get away with using quitclaim deeds to transfer titles.

The Quitclaim Deed and Fraudulent Real Estate Transactions - Deeds.com
...

Top 5 Facts About Quitclaim Deeds
...

 

[retic]

I see how many fake cashier's checks I can get them to send me before they figure out I'm messing with them and they quit. At least it costs them time and shipping costs.

 

[tk3000]

Interesting, because that response reinforces my original conclusion that the UNKNOWN TO YOU person IS A SCAMMER, CHEAT, THIEF.

It's response reveals it is a very devious, rotten, dangerous beast.

However, it isn't coming after me, so whatever you choose to do, won't hurt hurt or harm me one, tiny bit!

Be careful citizen, the beasts are angry and hungry.

Honest, sane, reasonable, responsible people don't insist on doing stupid/dumb stuff that could cause them harm.

On the contrary, dishonest, criminal, devious, diabolical SCAMMERS will do and say ANYTHING that gets the MARK (that is you, OP) to do it their way!!!


View attachment 4055





Don't Quit Your Claim! A Quitclaim Deed Is Not a Mortgage Saving or Estate Planning Tool - Deeds.com
...

///////////////////////////////////////////////////////
The Use of Quitclaim Deeds in Scams
Unlike the warranty deed, the quitclaim requires no title examination process. There is no guarantee of clear title. Thus, scammers are drawn to quitclaim deeds to carry out transactions with assets that belong to other people.

Scammers may exploit the simplicity of quitclaim deeds. They may use these instruments to fraudulently convey property into their names or aliases. Some pose as personal representatives of estates to carry out the schemes.

Having recorded a fraudulent document, a scammer can sell the property without a warranty, rent it out to unsuspecting tenants, or obtain a loan on its value.

Today, online sources offer scammers ample information about properties and their owners' identities to facilitate such activity. Moreover, it is not difficult for a fraudster to go into a county courthouse and file a quitclaim deed behind the rightful owner's back.

Typically, under state law, a recorder of deeds lacks authority to review or deny recordation—even if something looks suspicious.

Thus, a fraudster with a quitclaim deed can quietly take away a rightful owner's property. Often, the victim's loss only becomes apparent much later, when an effort to sell the property hits a wall during the title examination. An innocent person then faces a lengthy, expensive legal action to set the ill-gotten deed aside and reestablish ownership of the property.

Elderly Targets
The elderly are often targets. Sometimes, the perpetrator is someone they know.

Caregivers, financial advisors, or family members could persuade the owner that signing over a deed makes financial sense. Sometimes, coercion or threats are used.

In other cases, someone fakes the elderly homeowner's signature and has the document notarized.

Sometimes the fraud is more complex. Fraudsters may ascertain that an elderly person failed to make tax payments. The scheme involves paying part of the tax debt to stop the home from foreclosing, then filing a lien on the property. Some use quitclaim deeds to transfer the title.

Other fraudulent practices involve locating elderly people's vacant homes or beach homes, exploiting the owners' long absences to get away with using quitclaim deeds to transfer titles.

The Quitclaim Deed and Fraudulent Real Estate Transactions - Deeds.com
...

Top 5 Facts About Quitclaim Deeds
...

Thanks for your wise and informative remarks!

For a moment, I considered playing his own games back to him as suggested by retic and adjusterjack; but I am little busy for that now. Also, he may be some crazy psycho. So, I just blocked him.

Anyhow, it is really sad that this type of people does exist. He probably will succeed in scamming and defrauding some of his victims.

 

[PayrollHRGuy]

So, I just blocked him.

That is likely the smarter move.

 

[army judge]

For a moment, I considered playing his own games back to him as suggested by retic and adjusterjack; but I am little busy for that now. Also, he may be some crazy psycho.

Reflection, deliberation, consideration, and moderation help us maintain balance in the things we do.

I am especially cognizant of reflection, deliberation, consideration, and moderation whenever money is involved.

I'm not a fan of self help remedies, unless there is an immediate threat to my life, or the life of my loved ones.

In fact, the only time I've ever had to apply self help remedies was during my four tours in Nam during the latter four years of 1960s decade.

Blocking is very often an immediate, safe tactic.

Kudos!!!