Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 4 months ago, 09/21/2024

User Stats

43
Posts
9
Votes
Michael Belz
Pro Member
  • Rental Property Investor
  • NYC
9
Votes |
43
Posts

Question: Auction Purchase with Quitclaim Deed – Title Concerns

Michael Belz
Pro Member
  • Rental Property Investor
  • NYC
Posted

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.

  • Michael Belz
  • User Stats

    3,467
    Posts
    2,585
    Votes
    David Krulac
    • Mechanicsburg, PA
    2,585
    Votes |
    3,467
    Posts
    David Krulac
    • Mechanicsburg, PA
    Replied

    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? 

    User Stats

    17,396
    Posts
    14,964
    Votes
    Chris Seveney
    Lender
    Pro Member
    • Investor
    • Virginia
    14,964
    Votes |
    17,396
    Posts
    Chris Seveney
    Lender
    Pro Member
    • Investor
    • Virginia
    ModeratorReplied
    Quote from @Michael Belz:

    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.


    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
    business profile image
    7e investments
    5.0 stars
    15 Reviews
    BiggerPockets logo
    BiggerPockets
    |
    Sponsored
    Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

    User Stats

    43
    Posts
    9
    Votes
    Michael Belz
    Pro Member
    • Rental Property Investor
    • NYC
    9
    Votes |
    43
    Posts
    Michael Belz
    Pro Member
    • Rental Property Investor
    • NYC
    Replied

    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.

  • Michael Belz