Q: My wife and I were given a house by a friend using a quit claim deed. Will we have any problems if we decide to sell this house?
A: You shouldn’t have any problems selling the home, assuming you received good title to the home from your friend.
A quit claim deed is as good as any other deed in conveying title from one person to another. The only real difference between the deeds is in a quit claim deed the former owner transfers whatever ownership and interest in the land that he or she owns. If that owner owns a 50 percent interest, he or she only transfers 50 percent interest. And with a quit claim deed, you can’t go back to the seller and claim he represented anything with respect to the transfer of the land.
With a warranty deed you, as the new owner of the land, could sue the former owner if he were to transfer to you title to the home and that title turned out to be “bad.” A warranty deed by its own terms tells the future owner that the title to the home is being transferred to the new owner in a certain condition and if that representation turns out to be false, the new owner has a claim against the old owner.
In your case, your quit claim deed allows you to step into your friend’s shoes, and you are free to own or sell the home in the same manner as your friend could have owned or sold it.
One last item to keep in mind: Since you received the home as a gift, when you sell the home, you will need to determine what the home’s value is to you — the tax basis of the home. Your tax basis will be whatever your seller’s tax basis was.
If your seller bought the home for $50,000 and installed a new roof, replaced the windows and put on new siding at a cost of $10,000, your cost basis for the home would be the same as his, $60,000.
Jan. 14, 2008.
Can I sell my property after signing over to someone else a quit claim deed?
My mother and I received equal shares in a piece of property after my father’s death.. My brother convinced her to sign a quit claim deed.
In the will both I and my mother are equal share holders can my mother and I still sell the property?
If the quit claim deed was legally done, then your mother no longer owns her share of the property. If it was done based on a fraud, then she may be able to work with an attorney to reverse it. But you didn’t sell your share or convey title to your share to anyone. A quit claim deed allows someone to convey what they own to someone else. In your mother’s case, she only owned half of the property. So, at the most, she conveyed her half share. You can certainly sell but if your brother now legally owns half and doesn’t want to sell, it may be tough to do without engaging an attorney to help force the sale.
Ilyce Glink, Publisher
My parents are looking to sign over our cabin with quit claim deed. Are there any tax ramifications for me on this? Do I have to claim the value of the cabin as income or anything like that? Also do I have to pay capitol gains tax if I where to sell the property in the future? This would be in Wisconsin
Hello, My father bought a home in his name for me I paid it back 1/2 in 6 years I paid all taxes and insurance and no interest was charged by my dad, He quit claimed me the house and I sold it the same month and paid my dad off in full for house again no interest was charged, so will I owe capital gains even though I lived and owned home for 6 years I just wasnt on the deed. please help if you can.
house sold was in Nevada and father lives in Utah if this helps?
Residence was quick claim to daughter with life use, I met the conditions of living in the house 2 out of the past 5 years and could exclude any gain on my tax return. The house was sold with my daughter’s name on 1099s and her Social Security number. The closing statement have both of our names. Who reports the sale?
Can I sell a property after a quick claim to a friend ?, The person stop making the mortgages payment and the property is in foreclosure. I still the person responsable for the mortgage
If I singed a quit claim deed on the grounds I was told the house was going in to foreclosed and it was sold do I have any claim to the progeny made off it
My mom quit claim deed on a house that she owned to me. The said house was sold and part of monies was spent rest of monies was turned over to my mom. 22 years later she wants monies spent returned even tho said house was quit claimed to me. Does she have rights to do so
Need help was quit claimed a home that is going into foreclosure because he owes what do i do
If My parents sold me their house for $1 through a quit claim deed, how will I be taxed if I sell the house?
Debbie: You’ll be taxed as if you bought the house for $1. The profit would be the sales price – costs of sale (i.e. broker’s commission, advertising, etc.) – $1 (cost of purchase or basis) = profit.