What Kind of Deed When Gifting A Property?

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Real Estate Agent with RE/MAX Dallas Suburbs TX Broker 0513551

Quit Claim or Special Warranty Deed

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.

Tom Branch, Broker, CDPE, SFR

Photo: Licensed from iStockPhoto

Originally posted at: http://www.thebranchteam.com/wordpress/2011/10/31/what-kind-of-deed-when-gifting-a-property/

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Rainmaker
1,143,971
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Interesting and just another in a long line of reasons why you should always seek counsel from a qualified Real Estate Professional!

Oct 31, 2011 05:14 PM #1
Rainer
411,000
Joan Valverde
HomeSmart Realty - Colorado Springs, CO
GRI,CDPE,CNE,MRP,SRES Colo Sprgs, Blk Forest, Monu

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... 

Oct 31, 2011 05:24 PM #2
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Tom Branch
RE/MAX Dallas Suburbs - Plano, TX
Broker, CDPE, SFR, ACRE, Plano TX Ambassador

Joan,

It may vary from state-to-state, but Texas title companies do not accept a Quit Claim Deed. They were widely abused.

Tom

Oct 31, 2011 05:26 PM #3
Rainer
132,175
Sam Thompson
BIC Services, LLC - Fayetteville, NC
BIC Services, LLC

interesting

Oct 31, 2011 05:33 PM #4
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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.. 

Oct 31, 2011 06:04 PM #5
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Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

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

Oct 31, 2011 06:04 PM #6
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Tom Branch
RE/MAX Dallas Suburbs - Plano, TX
Broker, CDPE, SFR, ACRE, Plano TX Ambassador

Fred,

Good point on considering the tax implications as well as the legal ones.

Tom

Oct 31, 2011 06:14 PM #7
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