Read Before You Sign: The Risks of Quitclaim Deeds in Brooklyn Real Estate Transactions

A deed is a legal document used to transfer legal ownership of real estate in New York. Two of the more common types of deeds are quitclaim deeds and warranty deeds. When purchasing real estate from a buyer that you do not have a personal relationship with, it is more common to use a warranty deed, as it contains certain guarantees as to the property’s title. A quitclaim deed, in contrast, offers no warranty or guarantee of any kind with respect to title.

NY Courts Refuse to Undo Transfer from Mother-in-Law to Daughter-in-Law

Quitclaim deeds are often used in an estate planning context. For example, if you decide to create a revocable living trust and transfer your home into that trust, you would do so with a quitclaim deed. Similarly, if you decided to transfer ownership of your house to a child, you could easily do so through a quitclaim deed. In either scenario, the quitclaim deed effectively relinquishes any individual claim you might have in the property.

Of course, as with any legal document, you need to carefully read and review a quitclaim deed before signing it. Even when dealing with other family members, it is in your best interest to consult with an independent attorney to ensure that you do not inadvertently sign away valuable rights in your property. Because unfortunately, if it later turns out the quitclaim deed had an effect other than what you intended, it may be too late to do anything about it.

A recent decision from the Appellate Division, Second Department, provides a cautionary tale on this point. In this case, Dodobayeva v. Rubinoff, a woman signed a quitclaim deed in 2013 that she believed transferred here one-half ownership of some residential properties in queens to her son. Seven years later, however, she discovered the deed actually transferred the properties in question to her daughter-in-law, who was now the sole owner.

The woman subsequently filed a lawsuit to set aside what she alleged was a “fraudulent conveyance.” She said that as a native of Uzbekistan who possessed limited English comprehension, she simply did not know what she was signing and relied solely on representations made by her daughter-in-law. The courts, unfortunately, dismissed the woman’s lawsuit as baseless.

As the Second Department explained, one problem was that New York has a six-year statute of limitations for civil actions involving fraud. The plaintiff here waited nearly seven years to file her case. She alleged that was acceptable since New York allows for a two-year extension when there is evidence the plaintiff could not have reasonably discovered the alleged fraud earlier. But the Second Department said that exception did not apply here. As the person who executed the quitclaim deed, the plaintiff was responsible for doing her “due diligence” before signing on the dotted line. Her limited English proficiency was not a valid excuse.

Contact a New York City Quitclaim Deeds Lawyer Today

Before transferring ownership in any property you own, it is imperative that you seek qualified legal advice from a New York City quitclaim deeds lawyer. Contact Yeung & Associates, LLC, today at 718-889-7568 to schedule a consultation. Our office speaks Mandarin & Cantonese in addition to English.

Source:

scholar.google.com/scholar_case?case=9590738331581911591