[firstsis]

Years ago in Arkansas, I did a quitclaim deed to my brother for a house we had financed for our mom. Later when the lienholder had to foreclose on the property, they also came after me. I had the foreclosure on my credit record for 7 yrs. What I didn't know at the time was that I was giving up my rights to the house but not my responsibilities.

Now a different situation has come up concerning a quitclaim deed and I don't want to get burned again. This property has no liens on it right now, but may have in the near future. Would a quitclaim leave me liable again to future loans? Here is more details:

I have inheritated real estate from my grandmother along with, 2 Uncles who received 1/4 each of the house; 2 other deceased sons had their 1/4 divided among the children. I am one of those who shares 1/7th of the 1/4th. My Uncle wants my sister, (who has lived in this house for the last 20 years), to receive the property by quitclaim, so he can in turn have a quiet title done for her so she can sell him his portion of the property. She would retain the rest of the property.

The children of the 4th uncle have not been heard of for these 20 years. Which is why I guess my uncle wants to do the quiet title.

My fear is that I will quitclaim this property to my sister who will sell part of it to my uncle. Any loans he will get in the future may be defaulted on and if so, could they still fall back on me? Or could the long lost cousins show up, want their part of the value of the land and be able to hold me liable? I would rather do a warranty deed because then I have feel I will not have the same liablity in the future?

Quitclaim deed or Warranty deed? Which is safer in this case.

[LisaB4657]

You don't want to give a warranty deed in this case. When you give a warranty deed you are promising that the title to the property is clear and that you will be responsible to the new owner for clearing it up if a problem is discovered later.

If you give a quit claim deed then you are merely granting whatever ownership interest you may have in the property, with no promises as to whether the title is clear.

As long as there are no liens on the property at the time you receive title, and as long as no liens are placed against the property while you own it, then you are not responsible for any liens after you transfer it. This applies regardless of the type of deed you use.

[firstsis]

Thank you Lisa, Can I still get a title search done and get title insurance so that I can be sure that no liens are on the property now, before I sign the quit claim? I am being told there are no liens, but how can I be sure? Wouldn't I have more protection with title insurance? Or is that just a waste of money? Or is title insurance only given in cases with warranty deeds? Thanks again, Firstsis

[LisaB4657]

You should get a title search done but if I were in your position I don't think I would pay for a title insurance policy. The title search will show if there are any liens on the property. Since you're going to be transferring your share of the property immediately via a quit claim deed I don't see why you would need a title policy.