Add company in the Quitclaim Deed

Aug 6th, 2022
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How to add company in the Quitclaim Deed

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Whats up guys, Its Clint Coons here and in this video I really wanted to hit on the four mistakes that I see people make time and time again when theyre deeding property into their limited liability company or land trust. All right. Lets get started. All right. So heres the deal. Four crucial mistakes that can come up if youre ever going to prepare your own deed, which I highly recommend. You do not prepare your own deeds when youre transferring your real estate into your various business entities, because theres just a lot of things that could get messed up, especially with the legal description that could possibly cloud title or even create problems with your overall asset protection structure or with insurance. So what are the four main problems that I see time and time again? Well, the first one that I see is people who use a quitclaim deed. All right. And you probably heard of this term before. If you gone to a local REIA or you just Google on the Internet, people always s

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A quitclaim deed does not automatically release you from the mortgage loan associated with the property. Until the original owner is officially released from the mortgage, that individual is still on the hook for payments and missed payments could affect their credit.
Due to this, quitclaim deeds typically are not used in situations where the property involved has an outstanding mortgage. After all, it would be difficult for many grantors to pay off a mortgage without proceeds from the sale of the property.
Which of these situations could be resolved with a quitclaim deed? an unprobated will has caused a cloud on a houses title (A quitclaim deed would resolve that cloud on the title by ensuring none of the deceaseds potential heirs will later make a claim of ownership.)
There is no title protection for the new owner. There may be third-party liens on the property or other title defects that will make it difficult for the grantee to make improvements to the property or even sell it.
A Quitclaim Deed Affects Ownership and the Name on the Deed, Not the Mortgage. Due to this, quitclaim deeds typically are not used in situations where the property involved has an outstanding mortgage.
Downsides to a quitclaim deed The greatest risk to receiving property with a quitclaim deed is that you may not have a true right to the property title. The grantor might not own the property title at all, yet quitclaimed you the deed.
No guarantees to the new owner: A quitclaim deed doesnt come with any guarantees from the grantor. There are no assurances that the property is clear of liens and encumbrances, and the onus will be on the grantee to complete a title search if they want one.

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