#Florida quitclaim deed without title search

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Do I Need A Florida Quitclaim Deed? | 561.699.0399

Florida Quitclaim Deed Lawyers What’s A Florida Quitclaim Deed And When Do You Need It? A Quitclaim Deed, not a “quick claim deed”, is a legal document that transfers the ownership of real property to someone else or to some other entity or trust. In Florida, it’s often used by family members to transfer property ownership to an entity, as gifts or in cases of divorce. It is of high importance to…

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Florida Quit Claim Deed

 Definition of Quit Claim Deed

A quitclaim deed is the simplest way to transfer an interest in real property in Florida. This type of deed is often used between parties s that have an existing relationship, such as family members, divorcing spouses, or business partners.

A key feature of a quitclaim deed is that it does not guarantee a property’s title is free of liens. The grantor simply transfers whatever interest they have in the property to the grantee and no title search is performed. Therefore, the  grantee receives whatever interest the grantor has at the time of the transfer, which could be nothing at all.

For this reason, quitclaim deeds are not typically used in arm’s length real estate purchases. Instead, a title search is performed and the seller then  executes a warranty deed, in which he guarantees clear title to the buyer.

 Requirements for a Quitclaim Deed

To be valid in Florida, a quitclaim deed must meet certain requirements:

Wording of the Deed: The deed must identify the property being conveyed, the grantor (the person transferring the property), and the grantee (the person receiving the property). It should include a clear legal description of the property, not just a street address.

Formalities:

The grantor must sign the deed in the presence of two disinterested witnesses.

The deed must also be notarized with the notary’s stamp and signature. The notary can also act as a witness.

Consideration (the amount paid for the property, even if nominal) must be stated on the deed, though the grantee does not need to sign the document.

Delivery of the Deed: The deed must be delivered to the grantee to be effective. Physical delivery, along with the intent to transfer ownership, is key to completing the transfer.

Recording of the Deed: Recording the deed with the clerk of court in the county where the property is located is highly recommended, though not required. Recording gives public notice of the change in ownership.

Florida Quit Claim Deed Statutes:

Section 689.025, Florida Statutes prescribes the specific language that should appear in a quitclaim deed.

Section 689.01, Florida Statutes requires that deeds conveying real property be signed by the grantor in the presence of two witnesses.

 When Does the Deed Become Effective?

A quitclaim deed becomes effective upon delivery to the grantee, meaning the grantor has physically or constructively delivered the deed with the intention of transferring ownership. However, while the deed is effective once delivered, recording the deed with the county clerk is critical for protecting the grantee’s interest.

Without recording the deed, the grantee may face difficulties in obtaining a mortgage or selling the property. Recording ensures that third parties, such as creditors or potential buyers, are aware of the ownership transfer.

 How to Record a Quitclaim Deed

To record a quitclaim deed, the original signed and notarized document must be taken to the clerk of court in the county where the property is located. The clerk will charge a small fee for recording the deed, which varies by county.  The deed then gets recorded in the chain of title for the property, letting the public know that a change in ownership has occurred.

If there is a mortgage on the property, a documentary stamp tax will usually be assessed on the transfer. Florida’s documentary tax on mortgages is currently  $0.35 per $100 of the mortgage amount. This tax must be paid when recording the deed.

 Quitclaim Deed After Divorce

In divorce proceedings, quitclaim deeds are often used to transfer one spouse’s interest in the marital home to the other spouse. Its important to note that a quit claim deed trasnfer does not affect any mortgage obligations tied to the property.

If both spouses are jointly liable on the mortgage, both remain liable even after the transfer. To fully release a spouse from the mortgage, refinancing or other arrangements with the lender must be made.

Be mindful that many mortgages contain a "due on sale" clause, which may allow the lender to call the loan due upon transfer of ownership. However, in practice, lenders rarely enforce this clause unless the mortgage is in default.

 Quitclaim Deed in Estate Planning

Quitclaim deeds can be a useful tool in estate planning. For example, a property owner can transfer their real estate to a living trust using a quitclaim deed. This allows the property to be held in trust for the benefit of beneficiaries and avoids probate upon the grantor’s death.

Additionally, quitclaim deeds can be used to transfer property into a Florida LLC as part of an asset protection strategy. The owner may then devise their LLC interest to heirs through an operating agreement, keeping the property within the family while potentially shielding it from creditors.

 Contact Florida attorney John Clarke at (954)556-8952 for a free estate planning consultation.

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What Do You Pay at Closing When Selling a House in Palm Beach FL?

What Do You Pay at Closing When Selling a House in Palm Beach FL?

Sellers in Palm Beach FL pay around 3% of the purchase price as an estimate of closing costs. This is excluding real estate commissions. The closing costs when selling a house in Palm Beach FL include:

Documentary Stamp Taxes.

Title Search Price.

Condominium/HOA Association.

Estoppel Letter Fee.

Fee For the Title Company

Survey Costs.

Commission For both Realtors.

Let us take a look at all these costs in detail.

What are the major closing payments?

1. Documentary Stamp Taxes On The Deed

A deed is a legal document that signifies the transfer of interests. For example, quitclaim deeds and warranty deeds. A deed needs to be signed and delivered. It is not required to be recorded in public records. But buyers would want to record it for two reasons: 

●       To use as proof that the property is bought by them.

●       To provide protection against any title claims. 

The County of Palm Beach levies a tax for recording such documents in public records. This is the Documentary Stamp Tax on the deed and is mostly paid by the seller.

What is the approximate cost?

A Palm Beach county seller will be charged $0.7 for every $100 of the selling price as the documentary stamp tax. So, if you are selling a house for $200,000, you would be charged 70 cents per $100. You will be paying a total documentary stamp tax of $1400.

2. Title Search

In Florida, the seller has the responsibility of showing the buyer a clear title for his property. The title search is performed by either an attorney or the title company.

Title companies have experts who specialize in the real estate business. They help the seller in the title search for the property. The title companies receive a synopsis of the title. It contains details of the legal issues related to the property. For instance, it will show the property's liens, easements, and transfers of the deeds. A good title company will have expert professionals who can find out the history of the property. 

To buyers, a clean title to the property is mandatory. The seller must provide a clear and marketable title. If not, the buyer is free to reject the contract unless both parties agree otherwise.

What is the approximate cost?

The price of a title search includes the fee of the title company.

3. HOA/Condominium Association Estoppel Letter Fee

An estoppel letter is a mandatory legal document. It is allocated by the seller's HOA (Homeowners Association). The document outlines the financial status of the current owner. It also highlights past and current fee due balances. The letter expresses the property's debts, violations, fees, and special assessments. These are generally allotted by the HOA.  

Before giving a loan to the prospective buyer, the bank would want to if there are any debts left with the HOA. They want to know the exact amount of debt. Without the estoppel letter, the buyer cannot borrow money from the bank. 

There are three possibilities that can be seen on the estoppel letter. One, there is no debt. Two, the seller must continue to pay the debt. And, three, the debt is divided between the seller and the buyer.

What is the approximate cost?

There is no fixed charge for the estoppel letter. The prices can be different for different associations. In most cases, the range is anywhere from $0 to $500. As per the law, the estoppel letter must be provided by the association within a period of 15 days.

4. Title Fees

The title fee is the fee the seller pays for the insurance premium of the buyer’s title. It is important as it protects both the buyer and the lender in case of any problems with the title. 

There might be some problems related to the title that aren’t discovered at the time of closing. Some examples of such problems can be improper legal descriptions, forged deeds, etc. 

The Title fee acts as a cover against such problems.

What is the approximate cost?

The title fee is calculated at the rate of $5.75 per $1000 of the purchase price up to $100,000. Over $100,000, add $5 per $1,000 of purchase price up to 1 million.

5. Survey Cost

A survey of the property is done by a professional surveyor and will show the boundaries of the property.  Since it clearly defines the exact boundaries of the seller’s property lines, it’s a good idea to have it done. These costs are legally binding and professionally certified. If there are no new constructions since a previous survey, the buyer can accept an old survey also. This will save you time as well as money.  

What is the approximate cost?

The Survey cost depends upon the size, location, history and age of the property. It might also differ among locations and professionals. In most cases, it costs anywhere from $300 to $600.

6. Commission For Seller's Realtor

The fee of a realtor is one of the major factors to consider when selling a property. It is true that real estate transactions are negotiable. But, while selling your Palm Beach house, you will be paying a fixed commission to the realtor.

There are two types of realtors. First, a listing agent who is hired by the seller. The job of a listing agent is to list the seller's property (ies) to realtors that have potential buyers. Second is a buyer's realtor. Their job is to show the listed properties to potential buyers.

Realtors must be registered under a real estate brokerage. If not, they are running an illegal business. Additionally, a realtor may work both as the listing agent and the buyer's agent. So, they will be compensated for both the jobs. Also, the seller has to pay both the listing agent and the buyer's agent. The payment is derived from the property's sale price as the commission.

What is the approximate cost?

Commissions for different agents:

Listing Agent- 2.5 to 3%

Buyer's- 2.5 to 3% 

This means you will be paying around 5 or 6% commission to the realtor(s). This means, if your property is sold for $100,000, the commission will be approx. $5000-$6000.

Conclusion

Selling a house can give you some stress, especially on financial terms. That’s why knowing about the closing costs can help you. 

Do you want to sell your house in Palm Beach county? Guy DeGiacinto Luxury Real Estate can make your experience better. Contact me at 561-371-8287.

I am more than happy to provide you real estate services of the highest standards.

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Title fraud is on the rise. Here’s why it won’t stop anytime soon.

(Illustration by Nate Kitch)

When family members of Lycienne Prince Barber were about to sell their dead relative’s two duplexes in Biscayne Park, they made a startling discovery. During the prerequisite title and lien searches on the properties, they found that a 55-year-old man named Hencile Dorsey, whom Prince Barber’s relatives never met, had filed two warranty deeds transferring ownership of the properties to his own name in February and March of this year.

Neighbors in the small village told Prince Barber’s relatives that Dorsey had gained access to the duplexes to change the locks and was planning to rent out the properties, according to Chelsea Silvia, a real estate attorney representing the deceased woman’s cousins. Her clients sued Dorsey in Miami-Dade Circuit Court, alleging the deeds under his name were fraudulent.

“When you are dealing with the death of a relative, estates can get messy,” Silvia said. “The last thing you expect to deal with is a fraudster appearing out of nowhere, spawning thousands of dollars in legal fees just to sell a property that is rightfully yours.”

Dorsey, who is facing five other pending criminal title fraud cases in addition to these two, declined to comment for this story. 

From alleged one-man bandits like Dorsey to organized crime rings, the title fraud racket is booming in South Florida, a fertile ground for scams involving real estate assets of the deceased. Gary Singer, a Fort Lauderdale real estate attorney who owns a title company, said he encounters some type of title-related fraud multiple times a month.

“It’s very widespread, and everybody needs to be on the lookout for it,” Singer said. The region has all the ingredients to till property-pirating schemes. Title pirates, as Singer and other experts in title fraud call them, have a large pool of victims to prey on in Florida’s elderly population, for starters. In many cases, the owner of  a home targeted by title pirates is an older person who is severely incapacitated or has died. The next of kin is usually in another state, or there are no longer any living relatives to handle the estate.

Florida law also makes the state hospitable for title pirates because county recorders’ offices are legally barred from verifying if a person on the deed is the true owner.

“There is so much money to be made from title fraud, and it’s not that hard to do,” Singer said.

Pillaging for booty

Victor Petrescu, a Miami-based lawyer who specializes in litigating fake title claims on behalf of lenders, said title pirates cash in on the scam by renting out properties or fraudulently selling homes to unsuspecting buyers until the bogus ownership claims are dismissed in civil court and title is conveyed to the rightful owner.

A deed only requires that the document be notarized and signed by two witnesses, but county recorders’ offices all over Florida are not required to verify if the signatures and the notary stamp are legitimate, Petrescu explained.

“You take it to the county recorder, pay a nominal fee of like $15 and the deed is recorded,” he said. “When you pull the chain of title, this other person will now appear as owner of the property.”

In recent years, Petrescu has seen a rise in title fraud involving individuals and groups with no connection to the owners of the properties they are laying claim to.

In 2016, Petrescu represented a client who was locked in a legal tussle with members of the Moorish Science Temple of America over 11 properties in Seminole County. His client was a lender that had acquired the parcels via foreclosure proceedings.

“They started filing quitclaim deeds because they believed they had a right to the land,” he said, noting the temple members were squatters and not renters. Petrescu added that they also attempted to resell the homes while litigation was pending over the title claims.

“It ended up delaying my clients’ legitimate sale of the properties, with one deal falling through,” he said. “It took about a year to resolve.”

Once a fraudulent deed is filed, title pirates can make a small fortune dealing in properties they have no legitimate claim to. For instance, by the time a 2014 Florida Department of Law Enforcement (FDLE) investigation zeroed in on Robert Allen Tribble — a man with convictions for credit card fraud, credit card theft and forgery in Georgia — he had allegedly stolen $240,000 from renters and would-be buyers who believed he owned properties he was renting and selling to them. An FDLE report states that Tribble’s scam involved 35 homes in Miami-Dade, Broward, Palm Beach and Martin counties with a taxable value of more than $7.5 million. He allegedly collected mortgage and rent payments ranging from $2,500 to more than $20,000.

Tribble, convicted in November 2018 on five counts of organized scheme to defraud over $50,000, was sentenced to five life terms this past April. He is appealing the sentence on the grounds of double jeopardy.

Dead men tell no tales

Last year, the Broward sheriff’s office conducted Operation Tomb Raider, an investigation that ended with the arrest of seven people allegedly involved in a ring that illegally took ownership of 44 homes from unsuspecting owners and 18 deceased owners. The properties had a total value of $12 million and were mostly located in Coral Springs, Margate, Tamarac, Lauderhill, Parkland and Weston.

Using various shell corporations, the ring used stolen notary stamps and forged signatures to file fraudulent deeds and initiate property transfers without the knowledge of the true owners, according to arrest affidavits. Authorities alleged that ring members sometimes sold the same home to more than one person and collected mortgage payments from both buyers almost simultaneously. The case involved more than 600 counts of felony fraud.

Singer, the Fort Lauderdale lawyer, represented a relative of one of the dead owners, whose Margate home the ring illegally acquired through a fake quitclaim deed. He said his client learned about the fraud prior to Operation Tomb Raider, but the arrests made it easier to clear up the chain of ownership in civil court.

“The problem with this type of fraud is that the burden is on you to prove the deed is fake,” Singer said. “It took about eight months to get the fraudulent deed rescinded.”

Luckily, Singer had a laundry list of evidence that proved it was a fake deed, such as the notary public agreeing to testify that she did not stamp the document and that her signature had been forged.

“She didn’t even know anything about the deed and was willing to assist us,” he said. “There was also a long period of time between the date when the deed was signed and the date when it was recorded. Typically, you file a transfer deed on the same day all parties sign it.”

But criminal investigations are not enough of a deterrent against some title pirates. In July, Miami-Dade state prosecutors filed seven separate criminal cases against Dorsey, the man accused of illegally claiming ownership to the Biscayne Park duplexes. Dorsey is accused of forging deeds transferring title to five other residences in El Portal, South Miami and West Kendall. He’s facing dozens of felony counts of grand theft, organized fraud over $50,000 and unlawfully filing false documents. Dorsey is scheduled for trial in January, and if convicted faces a minimum of 30 years in prison.

Despite his legal troubles, Dorsey is still fighting to maintain his alleged phony claim to Prince Barber’s properties, said Silvia, the lawyer for her cousins.

“As it stands, the fraudulent deeds still appear as legitimate,” Silvia said. “The deeds still have the effect of interfering with clear ownership of the properties. No one will insure a property under those circumstances.”

On May 15, a Miami-Dade Circuit Court judge entered a default final judgement in favor of Prince Barber’s cousins after Dorsey failed to respond to their motion dismissing his claim to the property. But in mid-November, Dorsey, who doesn’t have a civil or criminal lawyer and is under house arrest, petitioned the Third District Court of Appeals to overturn the judgement, claiming he was not properly served court documents relating to the estate’s motion for default.

“We were hoping the criminal case would help, but it has not had any effect,” Silvia said. “Nearly 10 months later, the property has still not been sold, and the buyer is still waiting.”

Fighting fraud

Silvia said title fraud could be easily curtailed if county recorders’ offices were proactive in verifying deeds are  legitimate.

“[The Dorsey] case is a frightening and disturbing portrayal of the recorder’s office inability or refusal to look beyond the face of a fraudulent document,” she said. “Mr. Dorsey recorded deeds for different properties all in a row on the same day. If that doesn’t scream fraud, I don’t know what does.”

A spokesperson for the Miami-Dade clerk of courts recorder’s office said a change in state law would be needed to grant it the authority to approve or deny deeds before they are filed as official county records, and that as it stands, the office’s role is “strictly ministerial with no executive authority.” 

So if a deed is properly filled out and has a notary stamp, the office is required to file it, legitimate or not. Silvia said a few counties, like Pinellas, are enacting rules to prevent title fraud.

“Unfortunately, Miami-Dade is a breeding ground for real estate fraud,” she said. “It goes unchecked unless clients like ours choose to fight.”

The post Title fraud is on the rise. Here’s why it won’t stop anytime soon. appeared first on The Real Deal Miami.

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