Quit Claim Deeds Get Scrutiny from Title Underwriters

I write title insurance in Miami with First American, Fidelity and Old Republic Title and can tell you all of them have advised me against using a Quit Claim Deed for any purpose. Now they can explain the technical reasons behind why as lawyers and as a Title Company we should discourage the practice of using a Quit Claim Deed but the practical reason for it is to avoid the scrutiny. I have been told by more than one underwriter that a Quit Claim Deed that is recently in the chain will raise suspicions about the transfer. For one, it raises the question of whether there may have been a fraudulent transfer. Secondly, documentary stamp taxes may not have been properly paid.

If you ate divorcing and are told to do a QCD then ask your lawyer about incorporating the transfer of property within the Final Judgment.

If you need to transfer property to a related party then I suggest using a Special Warranty Deed and having your lawyer even put language in the Deed that no doc stamp tax is required.

Quit Claim Deeds may be easy to write but can cause more headaches when you sell the property in the future. Make sure that you consult with a real estate professional about whether a Quit Claim Deed, Special Warranty Deed or Warranty Deed is best for your circumstances.