Should the escrow company be concerned with prior quit claimed deeds issued on the property?
Yes! California law provides that when a grantor quitclaims his interest to another party, he transfers his entire interest including all the defects and equities, which could then have been asserted against him.
This means that when the debtor quitclaimed the property interest the person who took title obtained, took it subject to the recorded lien and DCSS can still assert a support lien on that property. This frequently happens in dissolution cases, where the support obligor quit claims the property in dissolution of marriage to the former spouse, who takes the property subject to the support liens.
If the escrow you are handling involves a property where quit claimed deeds have been filed, a name search will need to be performed for the grantor of the quitclaim to avoid problems and future litigation.
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