Flipping A Quit Claim Deed Property
I just purchased a property from A older person who has owned the property for over 30 years. He lives out of state and basically just wanted to get rid of the house. The house is clear of any leins. We transfered ownership of the house via Quit Claim Deed. The deed has been recorded. Can I flip this property to an investor with another quit claim deed? If I get an interested investor, when we close is the quit claim deed good enough along with a title search, or do I need to give them a warranty deed? I am trying to keep this as simple as possible.[ Edited by CGOODEN on Date 08/07/2003 ]
This is very similar to a deal that I completed a few months ago, I picked up a property from someone living out of state and we didn't use a title company to complete the deal, I then sold the property a few months later using a title company and they made her re-sign to the fact that yes she did sell the property to me. Which ended up taking more time than was necessary to complete the 2nd transaction. As it was explained to me, the title insurer would not go forward with deal unless the first seller complied with this request. So to cover their ass in case of fraud.
if you find a buyer who is willing to purchase the property based on a quit claim then yes. with a quit claim deed, the seller, in this case you, makes no representation regarding the title. essentially you are transferring whatever interest you have, with any liens or other defects, to the purchaser. I would never buy on a quit claim unless i know what the other encumbrances were. i would demand a general warranty deed.
Remember, a QC Deed really grants you no interest, it's just the seller walking away, saying now it's yours...whatever he's owned.
As has been said lots of times, you or I could QC the Eifel Tower, London Bridge, etc...and what would the buyer have? Nuttin!
So when you take a QC deed, all you can pass on to your buyer, unless you then go and research & prove you've got good & complete title, is just what you own.