Read the following scenario and answer the question in 5 sentences at least. You
ID: 351412 • Letter: R
Question
Read the following scenario and answer the question in 5 sentences at least.
You have started a successful business and are now ready to buy some property as your storefront location. You find one piece of property on a prime corner lot downtown. The owner of that property is willing to sell it to you with a quitclaim deed. The property has been in his family for multiple generations and he is not sure if any cousins have a legitimate claim to the property. You find another piece of property of similar size that is in a slightly less ideal location, but the owner is willing to sell it to you with a warranty deed. Based on your knowledge of the types of deeds, briefly discuss the risks involved in buying each property, which one might cost you more, and who has the burden of cost if a claim comes against the title of the property after the purchase.
Explanation / Answer
Ans: Types of deeds:
1. Grant Deed: It certainly states the seller should be in one word when it’s come to selling it with all the agreed conditions.
2. Bargain and Sale Deed: In this it shows the seller will not own the property or there might be some issues needs to be cleared.
3. Quit Claim Deed: Here, there is no guarantee and no money involved. It generally focuses on simple transfer of property rights in family members, divorcing, friends etc.,
4. Warranty Deed: The name itself says warranty so here the properties are sold only when they have proper warranty. The seller should compensate the buyer with the necessary information
Risks for first property:
1. The people involved in that property can claim us
2. We need to pay for the mistake which haven’t choose to do
3. Certain properties will always have something or the issues
4. Proper agreement must be mentioned
Risks for second property:
1. Place is smaller
2. We don’t have any right to claim the seller
3. Even in the agreement we may keep certain points which help us but that agreement can be treated as void agreement in court
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