Legal Question in Real Estate Law in California

Re: aquiring a quick claim property

You have hit on my "pet peeve"--the term is "QUIT CLAIM DEED, not "QUICK CLAIM"! In my opinion, anyone who does not know this is too ignornat to be involved in buying and selling real estate! There are a multitude of legal ramifications in doing what you propose; who is on the existing loan? Cany the current lender call the whole loan due and payable upon transfer? Is there going to be a new loan? Are you sure the person who is selling has good title? How can you provide a title report to the person you sell to? Who is on the tax role? How is title currently held by the seller to you--is there more than one person on title? Is there an HOA? Did you get clearance? Are there any liens on the proeprty? Are the taxes in default? Are you prepared to give disclosures and to potentially be sued if there are any aspects of the transaction where you make a mistake? You are in over your head and that is why people employ real estate agents.

Re: aquiring a quick claim property

I wish I had a nickel for everyone who had called it a "quick" claim deed. The only thing "quick" in my office is the Nestle Quik in the coffee cabinet. It is a quit claim deed.

If you don't have a law license or a real estate license, do you think you should be arranging real estate deals for others?

It's just a thought.

Very truly yours,

Re: aquiring a quick claim property

You probably don't have enough time to take a course from Anthony School or any other real estate school, but this is highly recommended if you are going to get involved in flipping real estate. The best alternative is to retain a licensed agent to assist you with disclosures and documents, and to use a title insurance and escrow firm to assist with their specialties, including verifying the seller's title.

One of the previous answers suggests that you may need a license for what you're talking about doing. That's an additional reason to use an agent to assist you, even if it would require you to pay a commission (which is, of course, negotiable as to amount). A license would be needed if you negotiate with a buyer with respect to a property you don't own - which is what seems to be going on. Of course, no license is needed to deal with property you actually own, but if you aren't the owner at the time you negotiate with a buyer, you're probably breaking the law regarding real estate licensing.

I'd also be concerned about how the deal gets financed. Do you think you're going to collect from your buyer before you pay your friend, the seller? Are there any loans on the property? Maybe in a beginner's dreams it is possible to use Peter's money to pay Paul, but in the real world, deal mechanics pretty much require the wheeler-dealer in a real property flip to have the bucks to carry the deal for a while, or at least have a very large line of credit.