Posted by fletch on September 08, 2003 at 09:04:46:
Thanks for your response. I will assume then that if the seller is able to secure title insurance for us in spite of the QCD then we should be okay.
Fletch.
Liquidated Prop & Quit Claim Deed - Posted by fletch
Posted by fletch on September 04, 2003 at 09:53:31:
Hi,
We have signed a PA for a property that is being sold by an attorney form that is liquidating an investor group here in Michigan that went belly up.
My question, the PA states that the deed will be a Quit Claim Deed and that title insurance will be purchased. My question is we never buy property on a QCD, always Warranty, and I am a little nervous. Since there will be title insurance purchased by the seller, should I be ok? or should I be checking something else out?
Fletch.
How about a compromise… - Posted by Ben (NJ)
Posted by Ben (NJ) on September 08, 2003 at 18:53:37:
around here we have a bargain and sale deed which basically has covenants against grantor’s acts. This essentially says the grantor attests to the fact that he has not previously sold the property to a third party, etc, but makes no other warranties. This, as well as a quit claim is used widely in the foreclosure arena. Title companies are a lot more comfortable with a bargain and sale deed.
A lesson on title insurance… - Posted by William Bronchick
Posted by William Bronchick on September 05, 2003 at 19:42:57:
Well, I’m not sure how title companies operate in PA, but I assume it is not much different than other states. The insured on a title policy is the BUYER. If someone makes a claims against the property, the buyer looks to the title company. The title company fixes the problem and steps into the shoes of the insured (buyer) - this is called “subrogation.”
The buyer, if he received a warranty deed, can go after the seller for breach of warranty; so the title insurance company can also subrograte to the rights of the insured and go after the seller. If the buyer received a quitclaim deed, the buyer would have no claim, and neither would the title company, which is why title companies generally INSIST on a warranty deed as a condition of insurance.