Unlock eSignature Legitimacy for Quitclaim Deed in United Kingdom

How to eSign a document: e-signature licitness for Quitclaim Deed in United Kingdom

greetings everyone and thank you so much for joining me for today's this week's Cloud title tip of the week and today I want to talk about quit claimed deeds and when to use them and when not to use them and to lead up to that as a background I want to share with you a very little known thing outside of the title Community which is the title treaty as we call it internally and it's basically an agreement between Underwriters that says if you know we at Cloud tidle for example are doing a title search and we find a defect that really should have been covered or fixed by the last title company but they missed it but they issued a title policy then we can rely on that treaty and in essence they're responsible for fixing the issue and especially um when we have issues like probate or defects in Prior title this can be very very helpful because it might be very timec consuming to hunt down somebody that uh should have signed something five or six years ago so we rely on this treaty provision a lot but in order for that to work the seller in this transaction right now has to have title insurance coverage through their owner's title policy and what a lot of people don't realize is that when you transfer ownership through a quit claim deed then you void the owner's title policy so in other words if Jeff buys a property gets an owner's title policy and then he decides to do a private business deal and use a quit claim D to transfer ownership to let's say an LLC maybe he even owns the LLC doesn't matter but it's a separate legal person and now he wants to sell that property the LLC wants to sell that property and there's a title defect that is found that would have been covered under treaty now it's no longer covered because the LLC the current seller is not covered by the title insurance policy that was issued to Jeff and because Jeff only quit claim his rights to the property to that LLC when he used the quit claim deed in other words there were no warranties made the underwriter that issued the policy to Jeff originally is not responsible to do anything and so it becomes a problem and we see this all the time especially when it comes to trans ERS between business entities where a quit claim deed is used and it's a real easy fix but most people aren't aware of that instead of using a quit claim deed use a warranty deed now if Jeff had used a warranty deed to transfer title to his LLC let's say for example then Jeff and the title policy still would be on the hook and the title policy would provide coverage so prain Deeds are being used a lot but many times they are used the wrong way so when should you use a quit claim deed well the best example of a proper use of quit claim deed is when let's say two or three people own a property and one of them is handing over their interests to the other party maybe boyfriend girlfriend bought a property together and now they're separating and one of them gives their share to the other party or in a divorce husband and wife and the decision is made that one of them gets to keep the property the other party uses a quick claim deal to basically quit their claims to the property to that other party so those will be proper uses of a quit claim deed and it does not affect any kind of title policy because they're still the original person or one of the original people that was insured on the property but when it comes to transferring property to someone else you never ever want to use a quick claim deed here's another perfect example we actually dealt with this just recently where one person used a quick claim D to privately sell a property was relatively inexpensive uh to another person was less than $100,000 so they just wanted to do it privately simple use the quit claim deed well the seller in that transaction actually had judgments and leans against them and of course there was no title search done so they Wen the the buyer was not aware of these things and so now when that new owner decided to sell the property and the title company as a title search now it became an issue because those leens still attach to that property and the quck claim deed didn't change that and that quote unquote seller didn't make any warranties they just issued a quick claim V so they're not even responsible to deal with it so the owner now has to deal with it and pay off those judgments so these kind of things happen all the time when you do thousands and thousands of closings and I've literally done thousands and thousands of closings over over the last 18 years in my title business you see these things over and over again so again do not use a quit claim deed to transfer to another person and and person meaning another individual or another entity only use a quit claim deed uh to you know release your claim in a property you own jointly to another person in there and keep in mind title insurance coverage terminates under your owner's title policy when you transfer out ownership to someone else using a quick claim de I hope you found this helpful Please Subscribe if you're not subscribed yet please tune in every Friday I'm going to put out a title tip of the week video and hopefully you find it helpful thank you so much take care my name is Thomas Simon with Cloud [Music] title