What is a "quit deed"?

[MAGICX2]

Does anyone have any experience with a "quit deed" for their resale contract? What is the difference between using one and going through a traditional closing?

 

[Dean]

Does anyone have any experience with a "quit deed" for their resale contract? What is the difference between using one and going through a traditional closing?

There are 3 types of deeds, Quit claim, warranty and I forget the third. Quit claim essentially says IF I own something, it is now yours, it doesn't warranty that you actually own anything. It's just easy to do on your own though a Warranty deed isn't that difficult to do by yourself either. It's great for changes between family, friends and adding or deleting people from the ownership. It's been said but I don't know for certain, that you can't get title insurance if there is a quit claim deed in the lineage. DVC uses quit claim deeds when they buy back under ROFR.

 

[MAGICX2]

There are 3 types of deeds, Quit claim, warranty and I forget the third. Quit claim essentially says IF I own something, it is now yours, it doesn't warranty that you actually own anything. It's just easy to do on your own though a Warranty deed isn't that difficult to do by yourself either. It's great for changes between family, friends and adding or deleting people from the ownership. It's been said but I don't know for certain, that you can't get title insurance if there is a quit claim deed in the lineage. DVC uses quit claim deeds when they buy back under ROFR.

Why would you need title insurance on a DVC contract?

 

[SanDeeKath]

A quit claim is a quick way to transfer ownership from one person to another. It is less expensive and goes much faster than a Warranty Deed, where the escrow company usually looks to see if any money is owned on the unit/points you are transferring (title search) and other things.

In the end, the new owner gets your points. But quit claim is faster although the buyer MAY be stuck with previously owned $$ on the account since there is no title search. For a seller, it makes no difference. For a buyer, it is a bit more risky.

Katherine

 

[5forDiz]

Why would you need title insurance on a DVC contract?

I believe it's related to leins, etc.

 

[SanDeeKath]

Let's say the owner owns $20,000 on his DVC points loan. Then he decides to sell the points for $18,000 to the new buyer. Well, the new buyer now owns $2000 more without knowing unless they do a title search. Buyers have to disclose how much they own on loans to the seller but some people are not 100% honest. So the new buyer is now $2000 more in the hole than he/she thought because with a quit claim, they are responsible for paying whatever is left on the loan.

With a title search, all this information is found out by the escrow company before the transaction finishes soooo the seller will have to pay off his/her loan before selling (and the buyer is protected from this situation).

Katherine

 

[Dean]

Why would you need title insurance on a DVC contract?

I don't think you do because you can easily check on the risky areas yourself but some simply can't get past the idea in their own mind.

 

[toocherie]

There are 3 types of deeds, Quit claim, warranty and I forget the third. Quit claim essentially says IF I own something, it is now yours, it doesn't warranty that you actually own anything. It's just easy to do on your own though a Warranty deed isn't that difficult to do by yourself either. It's great for changes between family, friends and adding or deleting people from the ownership. It's been said but I don't know for certain, that you can't get title insurance if there is a quit claim deed in the lineage. DVC uses quit claim deeds when they buy back under ROFR.

I believe the third type you are thinking of is "grant" deed.

 

[Dean]

I believe the third type you are thinking of is "grant" deed.

Yes thanks, too involved otherwise to spend 30 seconds looking it up.

 

[MAGICX2]

Thanks for all the quick replys and information. We would actually be the sellers and are researching sales options other than a broker. If we do decide to use a broker we will probably use the Timeshare Store, but we are trying to avoid that 10% commission.

 

[toocherie]

Thanks for all the quick replys and information. We would actually be the sellers and are researching sales options other than a broker. If we do decide to use a broker we will probably use the Timeshare Store, but we are trying to avoid that 10% commission.

actually, if you sell yourself you would probably be better off using an escrow company that is familiar with timeshare sales to make sure all required paperwork and disclosures are in order. It will cost you some money (I don't believe 10% however) and you would have some peace of mind.

 

[MAGICX2]

actually, if you sell yourself you would probably be better off using an escrow company that is familiar with timeshare sales to make sure all required paperwork and disclosures are in order. It will cost you some money (I don't believe 10% however) and you would have some peace of mind.

We are also considering this. I read a post on here somewhere that mentioned a Timeshare Closing Specialists or something to that effect. Does anyone know of any others? Who does the Timeshare Store use?

 

[Dean]

Thanks for all the quick replys and information. We would actually be the sellers and are researching sales options other than a broker. If we do decide to use a broker we will probably use the Timeshare Store, but we are trying to avoid that 10% commission.

All a broker really does is get a buyer and seller together. The closing company is the one who holds escrow, arranges the deed, recording, ROFR, etc. Unless you sell to a friend or family member OR are selling a very small contract where the closing makes a difference in the value, you and the buyer would be better off paying the extra $450 which is traditionally paid by the buyer.