Legal Question in Real Estate Law in California

Re: Quit claim deed for CA.

Wow! You either mean that you are loaning money and you want the promissory note secured by a deed of trust, or you are setting up a disguised security transaction.

If you mean a deed of trust, you do not use a quitclaim deed. If you are setting up a disguised security transaction, you had better be careful. Many parties set up disguised security transactions to avoid usury laws or California's anti-deficiency legislation.

If a court finds that the transaction is in fact a disguised security transaction, you will still be held to the usury and anti-deficiency provisions of California law. (See Golden State Lanes v. Fox (1965) 232 Cal.App.2d 135.)

Very truly yours,

Anthony Roach, Esq.

Re: Quit claim deed for CA.

What are you really trying to do?

If a house is sold - whether by quitclaim deed or grant deed - and the seller "carries" part of the purchase price for the buyer, the usual method is for the buyer to execute and deliver a promissory note and a deed of trust to secure it.

A quitclaim deed is used to transfer ownership of property, not to secure its financing. I think you have your concepts mixed up. This raises the strong possibility that you are about to attempt a mistaken transaction, and I suggest you get assistance from a lawyer, not only as to the papers to be executed but the entire concept of your proposed transaction.