Posted by Ben (NJ) on November 03, 2000 at 18:51:08:
sometimes if a property is acquired as a result of a very complex foreclosure, the seller may want to sell it via quit-claim deed in the event someone comes out of the woodwork at some point and claims an interest. In any event, there is no excuse to not have title insurance.
Quit claim deed - Posted by Lew Moore
Posted by Lew Moore on November 03, 2000 at 16:38:01:
I have an opportunity to buy a house from another investor. He will only give me a quit claim deed. How do I protect myself from a bad title or unpaid leins in this case?
Re: Quit claim deed - Posted by Claude(Sacramento)
Posted by Claude(Sacramento) on November 03, 2000 at 17:30:09:
I’m not an expert, but couldn’t you have a title company perform a title search before the quit claim and also purchase title insurance to protect your investment?
Re: Quit claim deed - Posted by Kara
Posted by Kara on November 03, 2000 at 16:59:04:
What is a Quit Claim Deed? I’m unfamiliar with the term. Thanks.
Re: Quit claim deed - Posted by Eduardo (OR)
Posted by Eduardo (OR) on November 03, 2000 at 16:58:13:
Lew–
By far and away the vast majority of houses sold in this country are transferred via warranty deeds, say about 95%. (It is only in a few cases of divorce or multiple ownership where one ex-spouse or partner wants out are ownership interests commonly transferred by quit claim deed.) There are very few other legitimate cases, usually where a lawyer has advised using a quit claim deed for some legal reason. Except, there is a small number of transfers done where there is something wrong with the title; these are often sucker deals where somebody is likely to get hurt. In your case, there is absolutely no reason that a seller would insist upon a quit claim deed unless there is something wrong somewhere. This is a big red flag of warning. Don’t be a sucker, if you are going to buy this property insist on a general warranty deed AND title insurance. The fact that the seller is an investor should double the warning to you. If in doubt, consult your attorney. --Eduardo