what does a "quit claim deed" signify?

[Jon Joro]

Hey all, new investor here with 1 deal in the pipeline. this is a deal im in at the moment.

I made an offer an a 3 unit investment property and the seller comes back saying “ I could work with your price however this is a cash sale with immediate closing. If funds are received today the quit claim deed can go off to the recorder Monday since its going to be pretty cut and dry; as is, no tax prorations, or warranties offered. With the amount of attention its received I will not be holding it. ”

With all education I have taken I haven’t heard of this. What would you do in this situation?

Thank you in advance

[Charlie MacPherson]

@Jon Joro A quitclaim deed is one where the seller transfers whatever rights he has in the property to you.  Those rights may be encumbered by liens, encroachments or even by previous title defects.

The first thing to do is to run a title search to see if there are any liens on the property.  Only then should you proceed.

The second thing to do is to buy owner's title insurance.  That protects you in the event of a future challenge to the title.

I was licensed in Massachusetts and Maine.  In Massachusetts, I saw quitclaim deeds on almost every property I sold.  That's the custom there.  In Maine I saw warranty deeds and only rarely a quitclaim deed.

The seller's comment "cash sale with immediate closing" raises a red flag for me.  It might be nothing, but it might be that he's rushing you for nefarious reasons.  Is he allowing a property inspection?  If not, I'd be very suspicious of defects that he doesn't want uncovered.

Far better to miss out on a good deal than to get rushed into a disaster.

Good luck!