Question

Selena Gomez is under contract to buy a mansion. After receiving the abstract of title, her lawyer informs her that there is a potential unrecorded interest in the property dating from the time of a previous owner. Selena does not want to lose the house to love it, and she wants to avoid going to court. What’s her best option?

a. Agree to pay the potential interest holder and then have that person sign a quitclaim deed b. Ignore the problem and close anyway c. Buy standard title insurance d. Ask the seller for a special warranty deed

Answer 1

Agree to pay the potential interest holder and then have that person sign a quitclaim deed.

A quitclaim deed is a legal instrument that is used to transfer interest in real property. The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee.