View Full Version : Contract for deed
Wasf
Oct 2, 2012, 07:37 PM
I have a contract for deed and want out the buyer said that a quit clain deed would void out the contact for deed is this true ? And also I am 20 now and was 17 and married when I signed it does that void the contract ?
AK lawyer
Oct 2, 2012, 07:58 PM
Your capacity to enter into a contract at age 17 (and marrled) would depend on which state or country this was in.
Was the contract recorded?
You are the seller? What do you mean you "want out"? You want to let the buyer have the property, or what?
Fr_Chuck
Oct 3, 2012, 02:12 AM
The way you list this, you are the seller. You can not get out of a contact for deed as the seller unless the buyer defaults on the contract.
There is no deed transfer in a contract for deed. The deed is never transferred till the home is completely paid off at the end of the contract. So there is no need for any deeds to be done.
Assuming the contract was done proper at the beginning.
So are you buyer or seller?
Why do you want out?
Tell us about any deed transfer
What type of contract
What country is this, and if US what state
Wasf
Oct 3, 2012, 06:37 AM
I am the buyer of the house we just want a new start and were told by the owner that a put claim deed would void the contract ? And Alabama !
ScottGem
Oct 3, 2012, 07:50 AM
I am the buyer of the house we just want a new start and were told by the owner that a put claim deed would void the contract ? And Alabama !
As Chuck noted. In a contract for deed the deed is not registered to the buyer unitl the contract is satisfied. So you need to check whether title was ever transferred to you. If it was, then you need to do a quit claim to transfer it back, if it wasn't then you just send them a letter stating you are terminating the contract and vacating in x number of days. You should read the contract to see what it says about defaulting.
Fr_Chuck
Oct 3, 2012, 07:57 AM
Yes in Alabama the deed is not given or transferred to the buyer on a contact of deed. The deed would have remained in the sellers name.
If they transferred it to you, then this became a mortgage or lien more than a contact.
So was there a deed transferred when you did the contract. At the Recorders of Deed at the courthouse, is the deed in your name or the sellers name ?
If it is in your name, they did the contract incorrectly.
If the deed is in your name, you need a written agreement, that return of the deed to them, will clear you of any debts and lien on the property. I bought and sold houses, some on contract in Alabama for years, finished selling my last one about two years ago.
I did not do it on contact but I held the lien on it.
AK lawyer
Oct 3, 2012, 05:25 PM
It appears to all hinge on whether the contract was recorded.
Wasf
Oct 3, 2012, 08:30 PM
The contract was recorded and the quit claim
Deed will also be recorded .
ScottGem
Oct 4, 2012, 03:04 AM
The contract was recorded and the quit claim
Deed will also be recorded .
You aren't listening. Unless the seller signed over title to you (in which case it wouldn't be a contract for deed) the seller still retains title and makes your signing a quit claim deed ineffective.
If the contract was recorded, then the seller would want a document stating that you are defaulting on the contract and it is now voided so he doesn't have a cloud on the title. But a quit claim deed says that the owner is transferring their interest int the property to a new owner. Since you are not the owner, then you have no interest to transfer.
LisaB4657
Oct 4, 2012, 05:44 AM
You aren't listening. Unless the seller signed over title to you (in which case it wouldn't be a contract for deed) the seller still retains title and makes your signing a quit claim deed ineffective.
If the contract was recorded, then the seller would want a document stating that you are defaulting on the contract and it is now voided so he doesn't have a cloud on the title. But a quit claim deed says that the owner is transferring their interest int the property to a new owner. Since you are not the owner, then you have no interest to transfer.
This answer is incorrect.
A quit claim deed transfers any property interest the buyer may have. In this case the buyer has an interest because he is a buyer under a recorded contract. That contract is now a cloud on title. The buyer must give the seller a recordable document that gives up the buyer's contract interest. A quit claim deed does exactly that.
To the OP: If your contract was recorded then yes, you must give the seller a quit claim deed. I would strongly recommend that you have the seller give you a written full release from the contract at the same time that you give him the quit claim deed.
AK lawyer
Oct 4, 2012, 06:33 AM
... That contract is now a cloud on title. The buyer must give the seller a recordable document that gives up the buyer's contract interest. A quit claim deed does exactly that.
...
Yup.
ScottGem
Oct 4, 2012, 06:42 AM
Looking up the definition of quit claim deed on several sites, I find the definition states that its an instrument that transfers ownership of real property to another person. That's what I was basing my responses on. No ownership, no need for a quit claim deed. However, several of these sites do broaden the definition to cover any interest one has in the property.
So I am incorrect in stating a quit claim deed would be ineffective. But I still disagree that a quit claim deed "must" be used. I totally agree that a "recordable document" is necessary to cancel the interest recorded by the contract. While a quit claim deed is one such recordable document, a simple statement that both parties have agreed to terminate the contract, duly signed and recorded will also do the job.
LisaB4657
Oct 4, 2012, 06:54 AM
Looking up the definition of quit claim deed on several sites, I find the definition states that its an instrument that transfers ownership of real property to another person. That's what I was basing my responses on. No ownership, no need for a quit claim deed. However, several of these sites do broaden the definition to cover any interest one has in the property.
So I am incorrect in stating a quit claim deed would be ineffective. But I still disagree that a quit claim deed "must" be used. I totally agree that a "recordable document" is necessary to cancel the interest recorded by the contract. While a quit claim deed is one such recordable document, a simple statement that both parties have agreed to terminate the contract, duly signed and recorded will also do the job.
And you would still be wrong.
A title company representing the owner of the property would insist that a quit claim deed be recorded in order to remove the exception to title. It is a standard method for completely removing exceptions like this.
A quit claim deed is basically the "seller" telling the "buyer" that "I make no promises as to whether I have any ownership interest in the property, but whatever interest I may have I now transfer to you."
From Black's Law Dictionary: "Quitclaim deed. A deed of conveyance operating by way of release; that is, intended to pass any title, interest or claim which the grantor may have in the premises, but not professing that such title is valid, nor containing any warranty or covenants for title."
AK lawyer
Oct 4, 2012, 06:56 AM
...
So I am incorrect in stating a quit claim deed would be ineffective. But I still disagree that a quit claim deed "must" be used. I totally agree that a "recordable document" is necessary to cancel the interest recorded by the contract. While a quit claim deed is one such recordable document, a simple statement that both parties have agreed to terminate the contract, duly signed and recorded will also do the job.
Many states have restrictions on what sort of documents may be recorded. I don't know what Alabama allows. But a QCD would certainly fit the bill to a "t".
The important thing, as Lisa suggested, would be to get a release from the seller. It probably doesn't matter really whether that is recorded, but if they are going to record something they might as well put it all in the same document.
...
A title company representing the owner of the property would insist that a quit claim deed be recorded ...
Title companies tending to be obsessive, I would not be surprised. If a recorded release as ScottGem suggests, if it includes the language contained in a QCD should work, but of course the tite company will have the last word.