Posted by JPiper on April 16, 1999 at 15:37:50:
Sounds like you’re being told that the bank will transfer the property by quit claim…and that you can get title insurance.
A quit claim simply transfers whatever interest the bank has. It makes no warranty as to what that interest is, or whether they have any interest whatsoever.
Should you proceed with caution? Of course. It would be irregular in my experience for a bank to transfer with a quit claim. More commonly the transfer is made via special warranty deed. But regardless of the type of deed, you may well have an insurable interest.
I’d make my offer subject to your receipt of a preliminary title report and approval thereof. Your transaction should also be made subject to receipt of a committment to insure title by a title company licensed in your state.
Deeding by quit claim raises some red flags…especially if the seller is a bank. But it’s easy enough to find out whether the title is insurable…have a title company run a title report and issue a committment, make your offer subject to this, and have the seller pay for it.