I answered an online question today. The writer was preparing to give a Texas property to his child and wanted to know if he should use a Quit Claim or Gift Deed.
While a Quit Claim Deed might get the property transferred, it will likely become problematic somewhere down the line when the child goes to sell the property. Texas title insurers usually will not accept a Quit Claim Deed. If the original owner cannot be found or has passed away, it can create title issues.
While I would suggest a Special Warranty Deed, it would be best to speak with a title company or attorney about this situation.
See our list of Dallas Fort Worth Title Companies.
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Originally posted at: http://www.thebranchteam.com/wordpress/2011/10/31/what-kind-of-deed-when-gifting-a-property/
Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.
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Interesting and just another in a long line of reasons why you should always seek counsel from a qualified Real Estate Professional!
TOM, I spoke with a seller today that is one of three owners on the house. The other two sellers are quit claiming to her so she cab sell. I too, will be verifying with my title company to verify this is the best way to go so no problems at sell time...
Joan,
It may vary from state-to-state, but Texas title companies do not accept a Quit Claim Deed. They were widely abused.
Tom
interesting
Aside from consulting a Real Estate Attorney regarding the Deed, the Grantor should also speak with a Certified Public Accountant or Tax Attorney regarding any potential IRS Gift Tax, State or County Transfer Taxes or Documentary Taxes, etc..
Dear Tom,
You certainly hit the nail on the head when you said - " ... be best to speak with a title company or attorney".
We are not lawyers ... We should be good great at our own work and not make comments that may be inaccurate.
Have a happy day -
Lynn
Fred,
Good point on considering the tax implications as well as the legal ones.
Tom