Who can contest a quit claim deed?

[John F]

Jurisdiction

Florida

Recently, I sold a townhome to a buyer. As a result of a survey, we learned that a portion of the property was never deeded to the association. We found the builder and he did a quit claim deed to the HOA of what are the common areas of the community. My client is concerned that one of the other 6 owners in the HOA can contest the QCD. They never had any claim to the property transferred. Can they challenge the QCD?

 

[adjusterjack]

Can they challenge the QCD?

Sure. All they have to do is hire a lawyer, file a lawsuit, and it's "challenged."

Will they be successful? Depends the reason for the challenge. No way to predict.

Why is your client concerned about a potential challenge? What, exactly, exactly is he afraid of? Anything specific? Or did he just ask the "can" question?

Understand that all a quitclaim deed does is convey any interest the grantor might have without guaranteeing that the grantor had any interest at all or any right to grant it.

Is the buyer of the townhome concerned? Did the buyer buy a title insurance policy?

Has anybody had an attorney review the situation? Might be a good idea to do that now, rather than end up spending big bucks to fix something later.

 

[Tax Counsel]

Recently, I sold a townhome to a buyer. As a result of a survey, we learned that a portion of the property was never deeded to the association. We found the builder and he did a quit claim deed to the HOA of what are the common areas of the community. My client is concerned that one of the other 6 owners in the HOA can contest the QCD. They never had any claim to the property transferred. Can they challenge the QCD?

Their challenge would likely get kicked out court very quickly for a lack of standing. Moreover, it would likely be stupid for the other owners to do it. All a quit claim deed does is transfer whatever rights your buyer had in that land to the HOA. If you had rights to that land, then so did he and the transfer to the association would be good. If he didn't get any rights to that property from you (i.e. you never had any right to it) then the quit claim deed is worthless. The only way the neighbors would have standing is if they have some credible claim to the property themselves. In which case they could bring a quiet title action. That can get expensive and may not be worth it to anyone.

Besides, why would they object to the land going to the HOA? That's makes the HOA more valuable and they have a stake in that as that improves the value of their homes. Presumably the HOA would not have accepted the deed if the property in question would cost too much to maintain to be worthwhile.

 

[zddoodah]

Recently, I sold a townhome to a buyer. As a result of a survey, we learned that a portion of the property was never deeded to the association.

Let's start here. I'm not sure what it's like in FL, but ownership of a "townhome" typically means that the owner owns the structure but not the land on which it sits. I'm going to assume that, at all relevant times, you only owned the structure.

You noted that "I sold a townhome" (singular pronoun), but then you wrote that "we learned" (plural pronoun). Who are "we," and how did you learn this.

You then wrote that "a portion of the property was never deeded to the association." I assume we're talking about a homeowner's association, but what property are you talking about, and who never deeded it? Also, when you refer to "a portion of the property," what exactly does that mean? Some of it was deeded, but some of it wasn't? How did that happen? And when?

We found the builder and he did a quit claim deed to the HOA of what are the common areas of the community.

I'm confused why you had any continuing involvement after you sold your home - especially if the property in question is part of the common area.

My client is concerned that one of the other 6 owners in the HOA can contest the QCD.

Your client? So...does this mean that this story, in which you used first person pronouns, is not actually about you? And what is your profession?

Can they challenge the QCD?

In the abstract, and without clear facts, virtually anything is possible. Again, though, why do you or does your client care if this is about common area property?

 

[flyingron]

Let's start here. I'm not sure what it's like in FL, but ownership of a "townhome" typically means that the owner owns the structure but not the land on which it sits. I'm going to assume that, at all relevant times, you only owned the structure.

In Florida and most places except in certain cities where ground leases are prevelent, you do own a small lot under your townhouse comprising the footprint of your unit as well as a front and back yard (and if your'e and end unit a side yard).

Not that it matters here. Deeding the structure itself has pretty much the same implications.

If the builder (or the occupants) deeded area to the association (common areas and possibly the land), there's no way for the individual property owners to deed away the stuff the HOA now owns. If it was interest was explicitly deeded to a unit owner, that owner can only deed away the interest they actually have.

The only difference a quit claim has over anything else is it disclaims any representation that the grantor of the deed actually has the interest in the property he's conveying. Primarily it is used when you don't think you have an interest, but want to make it clear to someone that whatever you do have, you're giving to them.