Auction purchase - QCD- uncharted water!-- CheckList to ensure all is good?

[Naveen Desai]

Hi, 

   Firstly, I would like to tell, Yes, I have bought many properties on auctions ( 26), all unseen, auction winner, bought and flipped. 

All my previous buys are either grant deed or SWD which came with title insurance at closing. However my 27th one is not the similar one. This one is a QCD. I did the bid knowing the fact. Well, sometime I have to get out in uncharted waters and explore and see what does it entail to get through this.  The purchase price is 25% of the actual retail estimate. So I thought this is going to be worth a try.

Before, going into the next steps, I am looking for some help from experts on what all to actually check if I am going to close on this.  Does anyone have kind of checklist? Let me also list out things I have in mind to verify. 

1. Property title search. 

2. Public utilities and country liens. 

3. Talk to HOA and get info on who owns it and story behind the unit, hoa docs, terms/conditions etc.

4. Encumberance details.  ( A detailed title search should give history upto 30 yrs), this property is only 13 yrs old.

5. Appraisal report & inspections. 

If I find a list of people's names on deed's history, should I reach them and get QCD. Is this something legal and possible?  I will be talking to an attorney as well. But also need to know all the right questions, I have to ask the attorney.

Has anyone gone through this kind of auction purchase? How did the process go? 

If not, would you take such a chance for such a discounted cost? Any and all thoughts, tips you can share is appreciated. 

Thanks. 

N.

[Joel Owens]

NO QCD.

QCD means whatever interest I have in title I am giving to you which could be worth nothing.

SWD means they are warranting from time of ownership.

GWD means they are warranting through entire property history.

You will see QCD's sometimes when a husband is moving title to the wife or vice versa or from their name into an llc they own. There are reasons to do QCD but generally when selling SWD should suffice.

You need to talk to a title company and an attorney about this to see if there is a way you will be protected for at least your capital outlay if things go bad.

No legal advice given.