Posted by David Butler on May 04, 2008 at 18:54:02:
In Reply to: Is This A Good Deal? posted by Steve on April 28, 2008 at 14:55:48:
Hello Steve,
You don't specify the type of interest each party owns; what each party receives in conjunction with that interest; the collateral value of the property; nor what the discount offered will be (answers to the first three questions play a major role in determining whether the final answer is commensurate with those answers).
Couple things to consider. First, minority interests are generally worth less. Though purchasing four of six would seem to indicate controlling powers, no other information provided supports that occurrence.
Second, you indicated executor-sibling resides in property. Possession is 9/10ths of the law they say... so the nature of that occupancy is important here. Is it based on a lease, or other type of rental agreement? Is the rent at street value? What are the terms of the lease/rental agreement?
Third, are there any deed restrictions or other clauses in the deed interests, or will, that otherwise diminish the interests of the individual heirs to each other, or in terms of free transferability in the title?
Finally... be aware that a quit claim deed transfers (conveys) only that interest in the property in which the grantor has title. Quitclaim deeds do not warrant good title.
Quitclaim deeds are commonly used to clear up questions of full title when a person has a possible, but unknown interest in the property. They are also sometimes used in transfers of title or interests in title, often made to family members, divorcing spouses, or in other transactions between people well-known to each other.
But grant deeds and warranty deeds guarantee (warrant) that the grantor has full title to the property or to the interest the deed states is being conveyed, and are the instrument you would want in any investment situation, along with title insurance protecting your interests. These are considered valid title transfers in most cases.
Hope that helps, and...
Have Fun For A Living
David P. Butler
www.hotspurinvestmentgroup.com