Quit Claim Deed...will it hurt resale?

[Julia Vang Hart]

I am considering buying a property from a landbank for a song and a dance. However, I would only be given a Quit Claim Deed at closing. I plan to fix it up and sale it. I know the differences between Quit claim and Warranty deeds. I know there's some risk with a Quit Claim Deed and that some buyers may not want to buy the property due to only being given a Quit claim deed. I may get an abstract of title done before I put in an offer but I hate to put out the expense but I also hate to be stuck with a property I can't sell later.    

Worst case I can hold the property as rental but I hate to tie up my money like that. Has anyone here had a problem with selling property on quit claim deeds? Is it worth the risk?

[Wayne Brooks]

You likely won't like the "dance" that comes with this property. The simple fact of receiving just a QCD in and of itself is not issue, as far as reselling goes......either you can deliver clear title to a buyer, or not. The REAL issue is whether you are receiving clear title or not. And the issue with that is Not only if you could resell with clear title, but the property May could be taken away from you. To buy a property, Especially from from a reseller calling themselves a "land bank", without a title search, and title insurance, could be one of the dumbest things you could do as an investor. Sellers who insist on selling by QCD usually know there is a title issue, and are looking for some sucker to pass it off to. There a bunch of guys down here trying to sell houses they bought at HOA Foreclosures to unsuspecting buyers , "for a song" because they don't realize there is a mortgage still attached to the property for far more than the property is worth, which will be foreclosed on at some point. Also, there are plenty of guys peddling tax deed/lien acquired properties that have a host of title issues, offered by QCD of course. If you want to buy some worthless real estate, just go eBay for real estate offered by QCD.....there's plenty for the taking.