Quit Claim For % Ownership?
I just purchased a property at foreclosure and will be receiving the deed in my name. I took on a partner for financing of 33%. Can I quit claim 33% ownership to my partner? I am in GA.
Thanks!
I just purchased a property at foreclosure and will be receiving the deed in my name. I took on a partner for financing of 33%. Can I quit claim 33% ownership to my partner? I am in GA.
Thanks!
Yes, but make it clear in the deed whether he's getting a TIC interest or JTWROS interest that would be all his if you died while in ownership.
Legal assumption would be that it's merly a TIC interest, but it's not something you'd want to leave up to any court for interpretaion on death of either of you.
Good ROT (rule of thumb): whenever selling a property, use QCD if possible, whenever buying get WD if possible.
Also, I recommend that you & he have a written P'ship agreement so you're on the same plan as to how to handle, manage and work the property.
In fact, you might be better off using an LLC with each of you owning percentage of units in same, and with detailed operating agreement as to who owns what percentage, what happens if death or disability overtakes either of you while the LLC is alive.
Could you elaborate on TIC and JTWROS? What are the advantages of each? Thanks again!
I did a little web research, I agree the TIC is what I need. How do I procede? Is TIC a separate document or part of the QC deed? Or, do I even need to file a new QCD, can it stay in my name?
While I like to keep all RE in my own name, or my co's name, there are times when a money partner's name should go on the property...like when the deal is that he will get partial title now, or if I'm selling to him now and taking option back, etc.
Chances are your money partner will tell you if he wants deed now, and what kind he wants.
Golden rule in RE is usually that the guy with the gold makes the rules.
A quitclaim deed is a conveyance of interest in real property. To be effective, a quitclaim deed must have a "grantor" (person conveying the property), a "grantee" (person receiving the property), be in writing, be signed by the grantor, and must be delivered to and accepted by the grantee. The grantor's signature does not have to be notarized to be effective, but must be notarized to allow its recordation.
This type of deed can convey the full right to ownership of the property (called a fee simple estate), or a lesser than full right to ownership, such as a lifetime estate to possess the property. However, this form is used to transfer all of the grantor's rights to the property. If you want to use a quit claim deed to transfer less than a fee simple estate, use specific exemption language to make it very clear what is not being transferred, and ask an attorney to review the document.
This type of deed gives no warranties regarding the grantors right to, ownership or possession of the property deeded, or even that the grantor has any right at all in the property. Legally, a quitclaim deed says only that "whatever right I have in this property, if any at all, I am deeding to you".
You may be better served in using a Grant Deed.
Thank you John and John for your answers. Sounds like I should talk to an attorney and let him know exactly what we would like to accomplish. My partner put up 1/3 of th efunds and I want to state he owns 1/3 of the property and will receive 1/3 of the profits when we flip it. If this can be accomplished with out using a deed, we will go that route. I'll see what the attorney says.