What to do if Quit Claim deed is recorded versus Warranty Deed?

[Denise L]

So I purchased a resale timeshare as an experiment from a low-budget outfit . I knew it would be an adventure. When the closing company sent me a draft of the deed, it was a Quit Claim deed. I requested a Warranty Deed and they agreed (as per the contract), and drafted up one for us to review. We made revisions and sent it back to them, and they told me that it had been sent to recording.

Today we received the deed in the mail and it is the Quit Claim deed ! They sent the wrong one in! I suppose I shouldn't be surprised....

So I'm wondering how hard it is to replace the deed? It looks as if the county recorded it properly with the correct information about the unit and week, but still, we would prefer the deed that we revised and approved. Is replacing a deed difficult?

Budget timeshare purchases are not for the feint of heart .

 

[Talent312]

I dunno what "changes" you made in the warranty deed. Unless they was merely clerical, they did not necessarily have to accept your changes. However, a QCD is completely unacceptable, as it does not promise even that the owner had authority to sell the unit.

It should not be a problem for them to go back a record the correct deed.
Have you contacted them about this? What do they say? I would think that should be your first step.

If they prove to be difficult, you could advise them that, since they violated your contract, you would be within your rights to file a lawsuit for recission of the transaction and return of your money.

If that doesn't work, consider paying a lawyer a small fee to write a demand letter. Quite often the threat of a lawsuit gets things done; however, its often more effective if done on a lawyer's letterhead.

 

[Denise L]

The changes were simple changes like our address and the name of the resort. They had sent me a draft of a Warranty Deed that had some mistakes, so we edited those and sent back a revised copy, which they claim to have accepted and sent on. Obviously, they did not do that.

Since I just received the deed in the mail today, I emailed them my concerns and will follow up with a phone call.

 

[rickandcindy23]

This just goes to show that 1)the company doesn't have license to file deeds;2) it doesn't have the ability to warrant anything it's selling; 3) and the people in the supposed closing company don't even have the experience to know what they have done is not acceptable.

Timeshare Rescue needs to stop taking back timeshares until they have figured out where their problems are. I just got another postcard in the mail a week ago.

 

[Steve]

I would always prefer a warranty deed rather than a quit claim deed because the warranty deed is a guarantee from the seller that he has title to the property that he is selling.

However, as long as there is no problem in the chain of title, then it really doesn't make much difference. If the quit claim deed has been properly recorded...and it sounds like it has...then it doesn't make sense to now have a warranty deed recorded for the same property. As long as the seller who signed the quit claim deed had clear title, then title has legally passed to you via the quit claim deed. If the seller now records another deed, he/she is no longer vested on title...so the grantor is not vested...and legally can't convey anything.

I would just double check with the closing company and/or the county recorder's office to make sure that everything was done correctly and that you are the sole legal owners of the property now. As long as everything is in order, I wouldn't worry about the type of deed that was used.

Steve

 

[SDKath]

Steve,

If you have a quit claim deed, doesn't it mean that as the buyer you could be stuck with $1000s of dollars if the previous seller did not have the unit paid in full? There is no protection for the buyer regarding what the previous owner owned, right?

Katherine

 

[rickandcindy23]

Steve,

If you have a quit claim deed, doesn't it mean that as the buyer you could be stuck with $1000s of dollars if the previous seller did not have the unit paid in full? There is no protection for the buyer regarding what the previous owner owned, right?

Katherine

That right, Katherine. You could also own that week along with the former owners. I hope Mario at Tri-West is watching this thread. He would know more about this. He recommends title insurance, just in case.

If this company didn't make sure the owners were free and clear (and they probably don't have any idea how to do that), then the new buyer could end up with all kinds of problems. What if they haven't paid their maintenance fees or there is still a loan balance?

We Quitclaimed our son to our rental property, back when he was living there in college, and it basically gave him partial ownership of the house, but we didn't suddenly become less liable for the mortgage payments, taxes, etc., and he didn't suddenly start getting the bills. He just owned along with us, and had all the benefits and no responsibility.

 

[SDKath]

No kidding! So when you Quit Claim a property to someone, you are still the owner? I thought everything transfers to the next owner (including any outstanding loans, leans, MFs, etc).

Katherine

 

[Dave H]

That right, Katherine. You could also own that week along with the former owners. I hope Mario at Tri-West is watching this thread. He would know more about this. He recommends title insurance, just in case.

If this company didn't make sure the owners were free and clear (and they probably don't have any idea how to do that), then the new buyer could end up with all kinds of problems. What if they haven't paid their maintenance fees or there is still a loan balance?

We Quitclaimed our son to our rental property, back when he was living there in college, and it basically gave him partial ownership of the house, but we didn't suddenly become less liable for the mortgage payments, taxes, etc., and he didn't suddenly start getting the bills. He just owned along with us, and had all the benefits and no responsibility.

Cindy:

You can not get title insurance on a QCD. Since they are conveying any interest in the property, you can not insure it, however, if a WD was done then you could insure it.

As far as the original buyer, I would still tell them you want a Warranty Deed. Even though a QCD was already recorded, it can be followed up with the warranty deed...

For chain of title purposes, it should have a notation on the deed that it is being recorded to correct the deed recorded in book xxxx and page xxxx as the wrong type of deed was issued.

It just lets a title examiner know what is going on.

Dave

 

[rickandcindy23]

Dave H, thanks for clarifying. The following thread has more about the Carolinas....

http://www.tugbbs.com/forums/showthread.php?t=68304&highlight=quitclaim

 

[Dave H]

No kidding! So when you Quit Claim a property to someone, you are still the owner? I thought everything transfers to the next owner (including any outstanding loans, leans, MFs, etc).

Katherine

Katherine:

I?t all transfers to whom ever is named as the Grantee.... in Cindy's case, they added a thrid party to the deed.... I think that was how she made it out.

Just remember a Quit Claim Deed just says I Quit(give) any Claim(interest) in the property. It does not say I have an ownership in it... but if I do, it is yours....

Dave

 

[Steve]

Steve,

If you have a quit claim deed, doesn't it mean that as the buyer you could be stuck with $1000s of dollars if the previous seller did not have the unit paid in full? There is no protection for the buyer regarding what the previous owner owned, right?

Katherine

Katherine,

There is no specific protection with a quit claim deed. However, if the purchase contract said that the property was owned "free and clear"...or some such...then the seller would be in breach of contract if this were not the case. So the buyer could sue the seller to recover any losses. (This is what a buyer would have to do with a warranty deed as well.)

A warranty deed doesn't magically remove any liens on the property, cure all defects of title, and make everything okay. All a warranty deed does is put the seller on record as guaranteeing that he is the owner of the property and that he has the ability to grant ownership to the buyer. If the seller owes back fees or mortgages...a warranty deed isn't going to make these go away.

In order to have any real protection, a buyer needs to purchase title insurance. Most people don't feel it is worth it on low value timeshare purchases, but that is the only way that a buyer is protected (other than by filing a lawsuit.)

This is why I suggested that Denise verify that everything is in order with the property. If it is, I don't think it's worth the hassle of recording a new deed. Others may disagree, which is certainly fine.

Steve

 

[Steve]

We Quitclaimed our son to our rental property, back when he was living there in college, and it basically gave him partial ownership of the house, but we didn't suddenly become less liable for the mortgage payments, taxes, etc., and he didn't suddenly start getting the bills. He just owned along with us, and had all the benefits and no responsibility.

You could have done the same thing (added your son to the title of your property) with a warranty deed.

Using a warranty deed does not offer the level of protection...nor offer a guarantee that a property is free and clear of liens...that many people think it does.

Steve

 

[Denise L]

I would just double check with the closing company and/or the county recorder's office to make sure that everything was done correctly and that you are the sole legal owners of the property now. As long as everything is in order, I wouldn't worry about the type of deed that was used.

Steve

Hi Steve,

I did my due diligence on this week and was satisfied that everything checked out. I requested the Warranty Deed because of what I have learned here on TUG and because the contract stated that we would receive that kind of deed. The closing company sent me the Warranty Deed to review, so I was really shocked to see that the Quit Claim had been recorded.

Everything seems fine at the recorder's end and it looks as if the timeshare has been transferred properly there. Now to see if the resort accepts it...that could be a problem. In any case, I will also still push for the proper deed to be recorded as a follow up.

I must say that I have learned a lot from this "experiment." Thank goodness for this site...I was well aware of all the pitfalls to come along the way, and each one kept my blood pressure up, but I just did not expect the wrong deed to be sent after reviewing the correct one. I thought I was almost home free!

 

[Talent312]

While the QCD is sufficient for the resort to change the name of the owner on its books and the buyer may find their use unimpeded, it makes the transaction imbalanced and unfair. The seller gets their money without assuring the buyer that they've sold anything or stand behind it.

If I were the OP, I'd be p*ssed. When talking t these people, it take all my diplomatic skills not to say, "Do you want me to stick a mongoose so far up your *ss that it nibbles on your tonsils?" or some such.

 

[GrayFal]

Hi Steve,

I did my due diligence on this week and was satisfied that everything checked out. I requested the Warranty Deed because of what I have learned here on TUG and because the contract stated that we would receive that kind of deed. The closing company sent me the Warranty Deed to review, so I was really shocked to see that the Quit Claim had been recorded.

Everything seems fine at the recorder's end and it looks as if the timeshare has been transferred properly there. Now to see if the resort accepts it...that could be a problem. In any case, I will also still push for the proper deed to be recorded as a follow up.

I must say that I have learned a lot from this "experiment." Thank goodness for this site...I was well aware of all the pitfalls to come along the way, and each one kept my blood pressure up, but I just did not expect the wrong deed to be sent after reviewing the correct one. I thought I was almost home free!

Welcome to my world

Wyndham will NOT accept Quit Claim deeds - check to see if Starwood will.

 

[Dave H]

While the QCD is sufficient for the resort to change the name of the owner on its books and the buyer may find their use unimpeded, it makes the transaction imbalanced and unfair. The seller gets their money without assuring the buyer that they've sold anything or stand behind it.

If I were the OP, I'd be p*ssed. When talking t these people, it take all my diplomatic skills not to say, "Do you want me to stick a mongoose so far up your *ss that it nibbles on your tonsils?" or some such.

Talent..... Well said....


DeniseL did your due diligence include searching the public records, probate records, tax records in the county the resort is located in? Due diligence has to me more than asking the resort if their is a mortgage. The resort or owners services is not going to have a clue if the owner has or had recorded judgments against them that attached to the property they own.

 

[Denise L]

Welcome to my world

Wyndham will NOT accept Quit Claim deeds - check to see if Starwood will.

Yep. And I thought it had been going so well after just 5 months . I will somehow get the proper Warranty Deed recorded.

 

[ownsherown]

Welcome to my world

Wyndham will NOT accept Quit Claim deeds - check to see if Starwood will.

Starwood will, I have one quit claim and its for Cave Creek.

Don't normally do them but I happened to be in AZ at the time and went down and did the searches and verified all info myself in person then filed it myself.

 

[Carolinian]

The usual waranty clauses, however, generally include provisions to defend title, i.e. pay lawyers fees if title is attacked, and to pay the damages if someone is able to assert superior title. You can go back on the seller on those if there is ever a problem. They are good to have.

Katherine,

There is no specific protection with a quit claim deed. However, if the purchase contract said that the property was owned "free and clear"...or some such...then the seller would be in breach of contract if this were not the case. So the buyer could sue the seller to recover any losses. (This is what a buyer would have to do with a warranty deed as well.)

A warranty deed doesn't magically remove any liens on the property, cure all defects of title, and make everything okay. All a warranty deed does is put the seller on record as guaranteeing that he is the owner of the property and that he has the ability to grant ownership to the buyer. If the seller owes back fees or mortgages...a warranty deed isn't going to make these go away.

In order to have any real protection, a buyer needs to purchase title insurance. Most people don't feel it is worth it on low value timeshare purchases, but that is the only way that a buyer is protected (other than by filing a lawsuit.)

This is why I suggested that Denise verify that everything is in order with the property. If it is, I don't think it's worth the hassle of recording a new deed. Others may disagree, which is certainly fine.

Steve

 

[GrayFal]

Yep. And I thought it had been going so well after just 5 months . I will somehow get the proper Warranty Deed recorded.

I just called Carla - another person yet again! - and asked her to fax my deed....disagreed with her regarding Wyndham accepting Quit Claim - anyway, she faxed to me and it IS a warranty deed recorded 10/19 - so maybe there is an end in sight

They said they sent it to Wyndham.....

 

[Denise L]

Thanks for all of the advice ! Here's an update:

The good news is that Starwood does indeed accept Quit Claims, so I guess that is something.

The closing company has told me that the proper warranty deed will be executed on Thursday and in the mail on Friday. I have asked for a copy of it ahead of time so that I can look for additional errors.

So, once the new deed is recorded, I suppose I will be out of the woods? Starwood already has us in its system, and I've been able to make a reservation .

Just hoping that I can breathe a sigh of relief soon. Then come the maintenance fee bills.... !

 

[Dave H]

Denise

Great follow through with them. I really had my doubts that they would respond as fast as they did. Just make sure they have the items on the need deed we talked about and all will be good.

Dave

 

[Denise L]

Denise

Great follow through with them. I really had my doubts that they would respond as fast as they did. Just make sure they have the items on the need deed we talked about and all will be good.

Dave

Quick update: The warranty deed was recorded on Thursday! Yay! So from the time they sent it, it took about 2 weeks for the county to receive and record it.

Now I have to wait for the original copy to appear in my mailbox so that I can send it to Starwood (there was a name error, among other problems, on the QCD) so that they can fix my owner information.

 

[Evie]

I have been reading these posts and wondered if I am understanding them right. I have owned my resort for many years and my children have been with us a lot. We are getting close to not being able to travel so would like to make it over to our children. As I understand it I could make a Quit Claim Deed to them and have it registered at the court house and take it to the resort for them to make their changes. Is this about right or have I missed something?

Thanks for any help Evie