Don’t Go Cheap on The Important Stuff

Don’t Go Cheap on The Important Stuff

Walmart has its purpose.  I’m all about spending less on day-to-day things, but when it comes to important things, don’t go cheap.  In just the past couple of weeks I’ve seen two separate real estate title problems caused by “going cheap.”  These are so similar that I couldn’t help but blog about them.

The first issue involved a family transfer of real estate.  The grantor bought a quit claim deed from the stationary store and tried to convey the property to one of his relatives.  In doing so he filled out the deed incorrectly and included himself as the grantor and the grantee.  Years later the other families members competed additional transfers, and each time they made the same mistake.  Now, it’s years later and one of the family is trying to sell the home but he can’t convey clean title without getting corrective deeds from the individuals before him in the chain of title.  The problem is that two of those individuals passed away long ago.  It’s a mess.

In another case an elderly couple decided to sign a a beneficiary deed to allow their kids to take title to the property upon their passing without the need for probate.  The couple filled out the correct beneficiary deed form, but they did not record the deed, thinking it would work like a will and could be recorded after death.  Under Colorado that deed is now invalid because it wasn’t recorded before they died.  They had the right idea, but they just didn’t get the guidance they needed.

Having deeds prepared correctly and getting guidance on important estate matters is definitely worth the up front costs.  If you don’t pay now, you will definitely pay later.  This is why I don’t do my own taxes!

 

 

 

 

 

 

 

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