Posted by John Merchant on October 20, 2009 at 23:07:51:
Never thought about this or known of anybody’s doing it but quick call to a local T Co would get you a fast answer.
Quit Claim…any problems defending future claims? - Posted by JA
Posted by JA on October 19, 2009 at 17:40:25:
Hello all!
Encountered an interesting situation. Was hoping someone could help.
Interested in purchasing a property. Seller obtained property via quit claim deed as part of a large package purchased from a bank. The quit claim deed from the bank for this property states that the bank did not perform a title search. The seller has not performed a title search. Seller wants to transfer proeprty to me via quit claim deed. So here’s my question.
If I buy this property and obtain title insurance, will the title insurance company defend me against any claims made by past owners that were not uncovered during the title search? How far back will the title need to be searched? To the last owner who issued a general warranty deed?
Please advise as soon as you can. Trying to wrap up this purchase soon. Thanks so much for your help.
-JA
Title insurance - Posted by John Merchant
Posted by John Merchant on October 20, 2009 at 24:21:26:
A title policy would insure that you get whatever docs from whoever in order to get you complete marketable title to this RE.
i.e. you’d get their assurance that you could pass good title to your subsequent buyer.
Or the TC’s report as to what docs they’d want to see done now so as to get you that kind of marketable title.
I’d advise you NOT to take the QC Deed until you get written assurance from the TC that you are getting complete marketable title.
And if it were to be later discovered that the title co. somehow missed catching some title deficiency they’d stawnd behind their title policy as it is issued, to the limit of their coverage amount.
Re: Title insurance…Increasing coverage? - Posted by JA
Posted by JA on October 20, 2009 at 23:00:07:
Thanks John for the quick response. I suspected that would be the case. More confident now to move forward.
One follow-up question. I’ve heard that it’s possible to increase your coverage by having the property appraised and, of course, paying an additional premium, once it’s been rehabbed. Any thoughts? Would appreciate your input. Thanks!
-JA