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gondwanalon's avatar

What Do You Think of a "Quiet Claim Deed"?

Asked by gondwanalon (16594points) June 22nd, 2010

My brother in law wants to sell his half of a property to my wife and I (for $400K) but wants to maintain a “Quiet Claim Deed” to the property in which he will have the option to buy back 50% of the property for ($500K) by the year 2015. To me it sound like my brother in law is essentially requesting a large loan from my wife and I and really doesn’t want to sell his half the property. The property location is in down town San Francisco. What do you think about this?

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7 Answers

janbb's avatar

If it were me and I were looking to buy him out, I would want to then own the proerty free and clear. Unless you have a family reason for doing him a favor, I would want a straight sale.

lynfromnm's avatar

It’s a quit-claim deed. I agree that your brother-in-law is basically getting a loan from you and using his half of the property to secure it. He isn’t really selling it to you if he retains an option. If you decide to do this, I’d have him pay me interest. But with this much at stake, I would most definitely consult my attorney.

Aster's avatar

I thought they were “quick-claim deeds.”

gondwanalon's avatar

Quit Claim Deed is what I ment. Sorry avout that. That was so sloppy of me. I’ve got to watch that. No excuse but I think that I’m in panic gear now. Thanks for your input.

skfinkel's avatar

Being in panic gear is probably not the best mental state in which to go into any large financial agreement. Make sure you want to do this, and it is good for both you and your brother in law.

LuckyGuy's avatar

This looks likea loan where he is only paying you 4% APR. He should at least pay 5% APR and cover the taxes. Basically he is putting you at risk in case the market tanks but is willing to take advantage of the upside if the market increases. Make it worth your while.

If this is a family emergency and he needs the cash, then that is a different story.

YARNLADY's avatar

What he needs is a provisional sale. I am pretty sure a Quit Claim Deed will remove any claim he has to the property, with no going back. He is not doing himself any favors by not getting a qualified real estate lawyer. Real Estate in California, and financial dealings with family are always full of danger.

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