What problems do you think Dr. Patel might see with the fact that you have taken the property under a quitclaim deed? A quitclaim deed gives no covenant of title. A quitclaim deed says: “I am conveying to you any interest I have in this property. I don’t know what other interests there may be.” This means that you may be taking on burdens of the past, such as a mortgage, attachment, judgment lien, or any other interest in real property un-knowingly. Therefore, if I default on the loan taken from Dr. Patel and he take’s ownership of the land and attempts sell it to get his money back, the land may not be worth what was lent because the property may have past interests. What would be the difference if Grandma had given you a warranty deed? When granting a warranty deed "The grantor covenants with the grantee that he is lawfully seized in fee simple of the granted premises; that the same are free from all encumbrances except as therein set forth, that he has good right, full power and lawful authority to sell and convey the same to the grantee and that the grantor shall, and his heirs, executors and administrators shall, warrant and defend the same to the grantee and his heirs and assigns forever against the claims and demands of all persons except as therein set forth." Having a warranty deed would ensure to myself as well as Mr. Patel what the exact, if any interests the family farm holds. You will know what the property is worth and Mr. Patel would be reassured that the property is worth the investment. This would be a fee simple and Mr. Patel and I would know there where no conditions of owning the property, we could do with it what we pleased.
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