Quitclaim Deed by Developer for Common Elements

Started by KaushalV • 5 replies • 3330 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

KaushalV (New Jersey)
Posts: 25

Posted:

Hi,

This question is for all of you who went through transition with the developer.

1. Is a Quitclaim deed the usual way Developer transfers ownership of common elements to the Association?

2. Have any of you been able to get a better deed (limited warranty deed, general warranty deed) from the Developer instead?

Thanks a lot,
Kaushal

MatthewW4 (Arizona)
Posts: 500

Posted:

Kaushal,

I am no expert on this subject but my understanding is that the proper use of a quitclaim deed is to allow a co-owner to surrender his interest in a piece of real estate. That is, both the grantee and grantor must be named as co-owners on a prior deed before the quitclaim deed is executed. My understanding is also that one cannot convey property to another person by a quitclaim.

In your case, if the Association and the Developer were both named as owners on the previous recorded deed, then the Developer could quitclaim his interest to the Association. If, however, only the Developer was named on the prior deed then a quitclaim deed would not be the proper deed form to convey title to the Association.

If the latter case is what you are dealing with your association will need to either have the developer execute the proper form of deed or file a quiet title action in court.

BTW, several years ago I ran across a real estate scammer on eBay who recorded pre-printed quitclaim deeds on everything he bought and sold and I could not figure out why. He could have just printed up the proper deed form on his own computer and printed them as he needed them. One day I was in a UPS Store where they had a rack of legal forms and they offered a package of five deed forms - all quitclaim deeds. That answered my question. The scammer was so ignorant that he assumed quitclaim deeds were proper because that's what they sold and he assumed that since they were pre-printed that they carried some greater weight than anything he could create.

KarenT (Washington)
Posts: 250

Posted:

A quitclaim deed transfers title to a grantee with no guarantee the title is good, the grantor doesn't even have to have title to the land to sign a quitclaim, they are just quitclaiming any interest they may have period.

A general warranty deed, on the other hand, states that the grantor has title and that the title is free of any "cloud" on the ownership.

A special warranty states only that the grantor has done nothing to cloud the title, but doesn't vouch for previous owners.

Quitclaim deeds are used in all states, but some states, such as California, use grant deeds instead of warranty deeds. Grant deeds make promises about the title--for instance, that it hasn't been transferred to another grantee as well--but they are implicit promises, where the warranty is explicit.

KaushalV (New Jersey)
Posts: 25

Posted:

Matthew/Karen, thanks for your responses.

I know the details of different types of deed. I want to know what is the common practice by builders.

Our builder has given us quitclaim deed. I am wondering whether to fight this with him or not. If most builders just give quitclaim deed during transition, it would be difficult to convince this builder why he should spend more money to provide a better deed in our case. We have other things for him to correct and I am trying to avoid topics that are not important.

So, I thought I can ask you all what your experience has been. If you were involved in a transition, did you builder provide quitclaim deed or some other deed for common elements?

MatthewW4 (Arizona)
Posts: 500

Posted:

Quote:

Posted By KaushalV on 06/05/2013 10:55 AM

I want to know what is the common practice by builders.

My experience with people who call themselves developers is that they know nothing and care even less. They do whatever they want to do when they want to because they truly believe that the laws do not apply to them. Common practice is to dump on anyone they can as there is little risk that the person dumped on will do anything.

I would never use common practice among builders as my standard for anything, just as I would not use common practice among drunks, axe murderers, or the insane. Get a qualified legal opinion about the validity of the deed.

MatthewW4 (Arizona)
Posts: 500

Posted:

Quote:

Posted By KarenT on 06/05/2013 10:07 AM
A quitclaim deed transfers title to a grantee with no guarantee the title is good, the grantor doesn't even have to have title to the land to sign a quitclaim, they are just quitclaiming any interest they may have period.

A general warranty deed, on the other hand, states that the grantor has title and that the title is free of any "cloud" on the ownership.

A special warranty states only that the grantor has done nothing to cloud the title, but doesn't vouch for previous owners.

Quitclaim deeds are used in all states, but some states, such as California, use grant deeds instead of warranty deeds. Grant deeds make promises about the title--for instance, that it hasn't been transferred to another grantee as well--but they are implicit promises, where the warranty is explicit.

Karen,

Thanks for the explanation. Much better than mine.

Look for me on eBay. I will be the guy offering quitclaim deeds to the Brooklyn Bridge, the Grand Canyon, and Yellowstone Park.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here