Does Anyone Have a Purchase and Sale Agreement - As-is via Quitclaim Deed

Question

Does anyone have a purchase and sale agreement for buying/selling a property as-is with a quitclaim deed?  Cash transaction, deposit held by seller, no title insurance, etc.  Title/lien search is being performed, so deposit needs to be refundable in the case anything uncurable comes from the search.

I understand that this may not be a legally enforceable document as we are not using the standard contract for Florida.  This is more to make the other party feel committed.  Low chance the sale doesn't complete, but since there is a deposit involved that will be held by the seller, thought it better to get something on paper and signed by both parties.

Thanks!

Wayne Brooks · Answer

Bill Gulley

Stephan apparently, is buying a property from someone who bought it at a Florida Tax Deed auction.  The tax deed isn't clear title until the buyer has gone through the Quiet Title process (4-6 month process), to actually extinguish the other liens that are extinguished in a tax deed auction, assuming the tax deed process was done properly, and all required parties were properly notified by the county clerk's office, etc.

I am Assuming they are doing a normal title search And verifying the clerk's process.  If there was a defect in the tax deed process, a lienor could unwind the sale, returning the initial purchase price.

There are certainly some risk buying from someone who acquired by Tax Deed, and hasn't done the Quiet Title process.  I assume Stephan is aware of this.

Bill Gulley · Answer

Sorry, I didn't mention Special Warranty Deed except out the warranty to the redemption and assume that risk.

That's what I get coming down from the ceiling and posting after reading a couple posts :)

Bill Gulley · Answer

@Stefan K.

Stop, you aren't doing this properly. Did you do any searching at all here on QDs? It has no bearing whatsoever on any title search or how much time you have. Do not go to the seller's attorney, sounds like the beginning of a scam, cash in hand and quit claim in five minutes.

Quit claim has nothing to do with quick, quick anything, doesn't take a second longer to sign a Warranty Deed, if a seller isn't willing to use a WD it's like sending up red rockets bursting in air, not just red flags, that they don't have good title.

You tie up a property with a standard contract and line out what doesn't apply, write in the terms, put money down. File a notice that the property is under contract, if you need to, done. If the seller is leaving town, close and get a warranty deed and file it, you can get title insurance later.

If you have no intensions of buying, use an option, why are you messing with it ? :)

Wayne Brooks · Answer

I guess they're not an "attorney" title co.  Find a RE attorney, which you should have to prepare the deed, and review the title search.  By the way, you can use any valid Fl purchase contract, just modify the deed section.  In addition to public records, have title search co. order a "city/county lien search" which will uncover any unrecorded, pending violations, which will become liens.

Stefan K. · Answer

@Wayne Brooks     Multiple title companies have told me that they can only perform a title search if title insurance will not be part of the transaction.  They cannot coordinate the closing, prepare the deed, hold escrow, etc.

QCD because it's a lower value tax deed property being sold for a discount as quiet title action has not been taken.

Wayne Brooks · Answer

No law against seller holding deposit, just not wise.

No title insurance?  You can get title insurance with a QCD.

The tile co./whoever you're going to use to prepare the document Can hold the deposit, whether or not title ins is being obtained.  They may not want to do it for "free".

More importantly--Why is this being done by QCD, as opposed to Warranty Deed.

Stefan K. · Answer

@Wayne Brooks - sorry, typed the above from my android phone so it didn't link your name.

Stefan K. · Answer

@Wayne Brooks - This transaction would of worked that way but both parties want the property of the market and there's a funding dely, thus the deposit.

Title company can't hold escrow because there is no title insurance.  They said the seller can legally hold the deposit.  Are you saying that's not true?  If so, is there something in the FL code that says it?

Wayne Brooks · Answer

Being that I have the "Realtor blinders" on, I have only used the standard FARBAR contract.  But, when I've bought by QCD, on "hurry up" deals, I've done title search, and then simply exchanged certified funds for a QCD executed by the seller, prepared by my attorney....maybe not necessarily the best way to do it.  You can probably find a generic contract, but the deposit needs to be held by the title co., Not the seller.