Quit Claim Deed - YouTube

Hi this is Lee Phillips

I want to talk to you for two seconds about a concept called called

a quit claim deed.

You quit claiming your interest in the property

so it's called a "quit claim deed".

Quit claim deeds are often used

when you're transferring property in and out of a living revocable trust

and it works just fine because the living revocable trust is considered to be you.

You are transferring your interest to you.

Now I have to talk about quit claim deeds for two seconds.

The quit claim deed only says that you quit claiming

any interest that you have on the property

I can give you a valid quit claim deed

for my interests in the White House.

Perfectly valid deed.

I don't have much interest in the White House

so the deed isn't worth a lot

but you can give the quit claim deed

to whatever interest you have in the piece of property.

Now if you're transferring assets to a company

like an LLC that you've set up

or corporation that you've set up

you're not going to use a quit claim deed

you're going to use a warranty deed

because you want any warranties

like the title insurance and stuff

to go with the deed that you're moving over to your LLC

or your corporation.

But the trust is different.

It's you.

You still have the warranties

you still have all of the stuff

so when you do a quit claim deed to a trust

you're not losing any of the warranties and things

that you would normally want to make sure

that you'd send along with the property.

The quit claim deed has a couple of elements

like six or so

that you need.

One, it needs to identify you.

Now, you are you,

you're the guy who owns the property

if you're the seller or if you're the guy who's transferring it into the trust

your trust.

So it identifies the guy who owns the property now.

It has to identify the guy who is to get the property.

If it's your living revocable trust,

remember that it is name of trust,

date of trust

and the trustee

those three elements have to be there.

And I saw a deed the other day that didn't have those three elements

and we've gone over those elements before

so it has your name

now that would be husband and wife

if you own the property as joint tenants

and you're putting it into the living revocable trust

so you'd both have to be identified.

If you're in a community property state

and even if hubby or sweeties name isn't on the deed,

I'm still going to want their name to be there as a grantor

the guy who gives up the property.

So I want both names in a community property state

independent of who "owns" it.

And normally you're in a joint tenancy situation or something

so we're going to have both of the spouses anyway.

We have to identify the property.

What are we sending over?

Now that could be a legal description,

Lot 6 Plat A,

you know somebody's subdivision blah blah blah

or it could be what we call a "metes and bounds" description

38 feet north of the centerline of blah blah blah blah blah.

You've seen those.

So I've got to describe the property.

Then we have to have a date.

We have to have a signature

of the guy who's giving away the property

so if it's husband and wife joint tenants

or whatever it is I've got to have both signatures

and by the way the signatures have to be identical

to what you had on the first deed.

If I signed my name Lee R. Phillips on the first deed

and I just have Lee Phillip

on the quit claim deed or the warranty deed where I'm sending it on

That won't work.

It has to be exactly the signature that was on the first deed.

So you gotta watch that.

I'm going to have the signature

then I've got to have delivery.

The deed has to be delivered.

We've talked about dresser drawer deeds

and that sort of thing in other YouTube videos

the delivery is an important element.

If there's no delivery

there is no valid deed.

Delivery is kind of a, "Yeah, no big deal"

obviously when the lawyer has you sign it

the trustee you go down you record it

obviously that's been delivered

because the recording has taken place

we've made the transfer everybody knows about it

trustees accepted it

we're okay

so there always has to be delivery

and that's where people screw up often

on the dresser drawer deed

mom and dad they don't want to go through probate

so they make out the deed and everything today

and then they just put it in the dresser drawer

and the kids go get it after mom and dad die

go down and record it

is that a valid deed?

No, there was no delivery.

Now who's gonna challenge it?

Well, that's another issue.

So lots of people get away with it

but technically there was no delivery.

So, quit claim deed

I'm just quit-ing my claim on the property

and transferring it to the other guy

whatever my claim was

and like I say it's okay when we're going between husband wife or

you and trust

but if you're moving between you

and LLC or corporation that you've set up

and a lot of real estate investors are setting up LLC's and stuff now

then you want the warranty deed.

This is Lee Phillips

explaining quit claim deeds.