Question: Auction Purchase with Quitclaim Deed – Title Concerns
Does anyone have experience purchasing a mixed-use property on an auction site sold "as is" with a quitclaim deed? I'm wondering if outstanding mortgages, taxes, or violations carry over.
The auction states that the title is free and clear of liens, but the contract only mentions a quitclaim deed without explicitly confirming a clear title. This is my first auction purchase, so any insights or advice from those familiar with this process would be appreciated.
The Quit Claim Deed raises the question why? I would ask why a Quit Claim Deed and not a Warranty Deed. Are there other potential ownship interests, are there potential lawsuits, re there potential municipal/state/Federal pending claims, etc. etc. etc. Told this story here before, we bought a property where the seller had been in a bar fight and had a judgement for medical injuries from the other person in the bar fight. Are there welfare liens, mechanics liens or other state liens NOT yet recorded?
Well the answer on whether outstanding mortgages carry over the answer is "it depends". It depends on who is foreclosing, what position they are in, what state is it in (is it a state where HOA usurps mortgages), are taxes being satisfied?
This is all the stuff you need to understand and should know before buying.
- Chris Seveney
It’s located in New York State, and I was informed (though I haven’t seen it in the auction contract) that all mortgages and taxes will be settled by the seller at closing. Attached is a copy of the auction description for your reference.
Title & Liens: Property is sold with title of record, free and clear of adverse liens or encumbrances at closing.
I am checking with the municipality to verify if there are any open violations. As for the mortgages, everything appears to be up to date.