For those of you who will be taking advantage of the government’s tax credit for first-time homebuyers, Southern California real estate agent and realtor Carol and Jim Chamberlain recently blogged about “How to Claim Your Home Buyers Tax Credit.”
As prices go up in San Diego, more homeowners will likely put their real estate on the market. San Diego’s North County Times reports that median home prices in our county climbed 8.9 percent in January. If you’re a potential real estate seller or buyer, your focus is probably on the sale/purchase price and financing. These are no doubt essential terms to the property’s sale and purchase. For the long run, also think about what type of deed will be given. If you don’t, you may regret it later.
What is a deed, and what can it do for you?
A deed is a document that transfers real estate ownership from seller to buyer. Certain basic information has to be included in a deed for it to be valid. This includes the names of the buyers and sellers, the property’s legal description (which isn’t as simple as a street address), words that transfer the property, signatures, and so on.
If you’re a seller, the deed can reduce the chances that you’ll be financially responsible for the real estate after you’ve sold it. If you’re a buyer, the deed can help protect your major investment. On the other hand, the deed may not give you any protection at all.
After buying or selling real estate, always double check that the deed was officially “recorded.” This means that for local real estate, the deed will be filed at the San Diego County Recorder’s office. Once recorded, anyone is free to check the property’s ownership records. This simple step is one important way to protect buyers and sellers. But before the deed is turned in, you’ll need to figure out what kind of deed should be written up:
“Warranty Deed” or “Quitclaim Deed”? Do you know the difference?
There are many different types of deeds. Each has its own purpose, but not every kind of deed will be right for your situation. After a sale goes through, there’s a chance that problems can come to light such as lawsuits, liens, or “easements” that give someone the right to use the property. But who will be responsible for these problems? The answer might depend on the deed you’ve negotiated before buying the real estate.
Two common deed examples are the quitclaim deed and warranty deed.
● A quitclaim deed only transfers the seller’s ownership interest in the property (if any), and makes no promises to the buyer.
● A warranty deed can include many promises to the buyer. For example, a warranty deed might guarantee that the seller will be responsible for existing liens and other problems – even problems created by people who owned the property before the current seller.
There’s usually more than meets the eye when it comes to deeds, and the promises that should or shouldn’t be included when buying and selling real estate. With a sale and purchase this big, you need to fully understand what you’re bargaining for. As experienced real estate attorneys, we’ll advise you on the potential advantages, drawbacks, and other legal considerations. You can do a lot to minimize risk in your real estate sale or purchase, which means saving time and money later. Get the information and advice you need with any deed and title problems from San Diego Law Firm’s skilled real estate lawyers. Reach us at (619) 794-0243.
Twitter It!
