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Updated over 9 years ago on . Most recent reply

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Nick Bernhard
  • Part-time investor
  • South Bend, IN
1
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Buy with Quitclaim, Sell with Warranty?

Nick Bernhard
  • Part-time investor
  • South Bend, IN
Posted

I recently purchased a property for very cheap. I had a title search done (no title insurance) with only back taxes showing up. I ended up buying it via a Quitclaim Deed.

Fast forward... I am now looking at selling this house through a Realtor friend. When I go to close, the expectation is that there will be a Warranty Deed. There will also be an updated title search done with title insurance.

If I go through with the sale, what kind of liability (title-wise) will I have once the sale is complete?

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1,750
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Matt Motil
  • Rental Property Investor
  • Cleveland, OH
879
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Matt Motil
  • Rental Property Investor
  • Cleveland, OH
Replied

If you sell using a warranty deed you are warranting that the title is clear and if there is EVER an issue with title up to the time you sold it you will be liable to clear it. If you have no idea what the history was and purchased the property via quitclaim I would suggest trying to sell it with a limited warranty if the buyer will go for it. They should get title insurance, and you can warranty the title for a specified duration of time, after which the warranty will expire. 

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