Quitclaim/warrantee deed

[sparklem50]

What is the name of your state? California
If a related person were to release their interest in a home to me, which form would be used, warranty, grant, or quitclaim? And can you explain about title insurance. How would I know if such insurance is in place within the current title?

 

[nextwife]

The current title insurance only covers the "insured buyer" up to the effective date on the commitment. If you were now deeded the property, you should not rely on the coverage from when they bought it- it only insures them up to their purchase date.

Is there a purchase involeved? Are you paying for this interest? If so, get a warranty deed.

 

[sparklem50]

Is it a good idea to have title insurance or is it something I don't need? If yes it is needed, can you explain the reason for title insurance?

 

[nextwife]

Title Insurance protects your ownership interest and verifies the "condition" of title. There are a myriad of issues that can cause a claim on title or a title failure. Even if one is getting a property for free, you still will want to improve it over the years, and don't wnat to have someone show up years later to collect on a lien or judgement or legally challenge your onwership. With title insurance, you would be made financially "whole" in the event of a title failure as a result of a covered matter.

"Owner's title insurance is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts as long as you or your heirs have an interest in the property. This may even be after the insured has sold the property. Only Owner's title insurance fully protects the buyer should a problem arise with the title that was not uncovered during the title search. Owner's title insurance also pays for any legal fees involved in defending a claim to your title."

The American Land Title Association has a good website about the industry
http://www.alta.org/cnsrinfo/eduabtti/content.htm#problem

Especially look at the section on Common Title Problems.