Editorial Note:
This story comes from Bernie Richter’s archives. We’ve updated it to include practical education for today’s investors. It’s a reminder that clear title is the foundation of every successful loan.
The Problem With Quit Claim Deeds
In real estate, the word “quit” can cause problems — especially with quit claim deeds.
We’ve seen too many investors try to save time or money by transferring title with a quick signature on a quit claim deed — only to discover later that the title was clouded, ownership wasn’t properly recorded, or the transaction wasn’t valid.
That’s why at North Oak, we won’t process a loan until we see a title commitment proving that the seller has clear, valid title. Without that, a deal can unravel before it even begins.
What Is a Quit Claim Deed?
A quit claim deed is a legal document used to transfer ownership (or potential ownership) in real estate. But unlike a warranty deed, it makes no promises about what the grantor (the person transferring) actually owns.
In plain terms, a quit claim deed is like saying:
“If I own any part of this property, you can have it. But I’m not promising I actually do.”
Common Uses:
- Adding or removing a spouse after marriage/divorce.
- Gifting property to a family member.
- Moving property into a trust.
- Fixing clerical errors on a title.
Risks:
- Provides no guarantee of clear ownership.
- Can leave you with clouded title or even no real ownership.
- Can delay or kill a deal when it comes time to sell or borrow.
Why This Matters for Investors
At North Oak, our promise is clarity, integrity, and people-centered lending. That’s why we have a strict rule: no loan moves forward without a title commitment.
It’s not about red tape — it’s about protecting your investment and ensuring you don’t end up with a costly problem buried in the paperwork.
The Bottom Line
Don’t gamble your project on a quit claim deed. For real estate investors, clarity in ownership isn’t optional — it’s essential.
Thinking about your next deal? Start with a clean title and a lending partner who won’t let you step into preventable problems. We’ll help you act fast — and smart.
