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Should I Accept a Fiduciary Deed for a Cheap Property I am Looking to Buy for Cash?

Attorney Thomas B. Burton answers a reader question regarding whether the buyer should accept a Fiduciary Deed in Wisconsin for a cheap property the buyer is looking to purchase for cash.

Transcript of Video: Should I Accept a Fiduciary Deed for a Cheap Property I am Looking to Buy for Cash?

Today I'm going to ask some real reader

questions that have come in in the past

few months because I think many of these

questions will be instructive to other

people listening so this is a question

from earlier this month the buyer says

I'm looking at buying a cheap property

for cash the current owner has a

fiduciary deed what type of deed do I

get from him and the questioner goes on

to explain a little bit more the real

estate in question was owned by the

gentleman's father who passed away a

year ago he has no interest in the home

and wants to sell it for cash so if I

buy the property from the son who has

this fiduciary deed what type of deed

will I be getting my understanding is a

warranty deed is the best for a buyer

can I get one of these from him? So the

answer to this question is you can

probably not get a warranty deed for

this property the reason is that the

warranty deed contains certain

warranties of title this is the type of

deed you want to get when you're buying

a home or other real estate and you

obtain title insurance with it from the

home owner if however you're buying a

property from an estate the son in this

case did not live in the home therefore

we generally don't hold him to the same

standard as someone who lived there like

the homeowner if the son is the personal

representative under the Will he will

likely supply this buyer with what we

call it fiduciary deed in this case in Wisconsin

it's either a personal

representatives deed for a personal

representative acting under a Will or if

the son was acting under a trust

instrument it might be called a trustees

deed these deeds are acceptable the

difference is that they do not contain

the warranties of title so if you are a

buyer of such a property you may want to

make sure you get a good home inspection

and title insurance when you

buy the property the reason is the son in

this scenario the personal

representative does not have the

knowledge of the property that his

father would have had who presumably

lived there for many years therefore the

son is just going to sell it to you as

the personal representative on behalf of

the estate now this is a valid title

transfer as he's acting in his fiduciary

capacity as personal representative but

if you're a buyer of such property make

sure you protect yourself by getting a

home inspection so you know exactly what

you're buying and I also suggest title

insurance in order to defend you if

there were some claim against the title

later great question and thank you

reader for asking!

© 2019 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

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