Q: My husband and I are divorcing. He is refinancing our property and buying me out. He says I will get the check two or three days after signing the quitclaim deed.
My local bank says normally there is just an exchange of signing and money at the same time. He is financing at a Federal Bank. Does this make a difference or is there something else going on?
A: Whether you’re working with a local bank or national mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate., when you refinance your primary residence, there is a 3-day right of rescission. That means you have three business days to cancel the transaction. So, it’s possible that your husband won’t receive the funds until 3 business days after the transaction closes.
But you have to protect yourself as well. I wouldn’t just hand over quit claim deedA Quit Claim Deed is a deed that operates to release any interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. in a property that a person may have, without a representation that he or she actually has a right in that property. For example, Sally may use a quit claim deed to grant Bill her interest in the White House, in Washington, DC, although she may not actually own, or have any rights to, that particular house. and trust that your soon-to-be ex-husband will come through with the cash. What you might do is deliver the quit claim deed in trust and give the escrow company specific instructions not to hand over the quit claim deed until your check has been received. That should protect your interests.
The problem is many escrow or titleTitle refers to the ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of a particular piece of property. companies won’t do this. If they won’t, then you should refuse to sign over the quit claim deed until you have a check in hand.
Please consult a real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate. for further details or other ideas on how to handle the situation.
Feb. 12, 2008.