Legal Question in Real Estate Law in Illinois

Quit claim deed in home construction

We own the ground on which our contractor will build our custom home. He wants to carry the construcion loan, but will require a quit claim deed on the property during this construction. What might be the negative ramifications of doing it this way instead of carrying the construction loan ourselves?


Asked on 5/10/04, 10:01 pm

2 Answers from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Quit claim deed in home construction

How many ways can YOU spell "scam".

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Answered on 5/11/04, 2:35 pm
Thomas Moens Moens Law Offices, Chartered

Re: Quit claim deed in home construction

This guy will own your property if you quit claim your interest to him. And then he's going to put a mortgage against it. I try not to use technical legal language in these posts, but I'm going to make an exception--YIKES! How are you going to compel him to reconvey the property to you? Even if you are successful, what if he doesn't make the payments on the mortgage loan? The bank will foreclose, that's what. Just keep repeating to yourself, "This is a really bad idea."

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Answered on 5/12/04, 9:00 am


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