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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111548
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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My sister and I own property in joint tendency in Colorado

Customer Question

My sister and I own property in joint tendency in Colorado and see wishes to sell her half to me and I wish to buy it. She is destitute and has a lot of credit card debit and hasn't filed taxes in years. It wouldn't surprise me if she files for bankrupts in the future. She wants to convey the property to me with a simple contract and a quit claim deed. I am worried her creditors might try to come after me after the sale and put a lien on the title or come after me for money. Would it be better to use a warranty deed with title insurance instead of a quit claim deed to protect my investment? Is there anything I can do to keep her debts from becoming mine?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Colorado
JA: Has anything been filed or reported?
Customer: No
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 1 month ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
As long as there are no liens against the property and you are buying the property from her at or close to market value, then the creditors cannot come back and claim the property, even if you do this with a contract and a quit claim deed. As long as you file that quit claim deed before any creditors start looking to place liens on the property you should be clear. However, a warranty deed can make it easier for you in the long run to sell or refinance, since the warranty deed represents that there are no deed issues from the very beginning. So sometimes if she has credit issues, using the warranty deed better protects you into the future for certain and it is worth the approximate $1500 it would cost to do the warranty deed and title insurance.
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