Flipping a house bought with Quit Claim deed

[Cal C.]

I have a house in GA under contract and I won't be able to get a warranty deed on it, just a quit claim. The law firm I used to close my last purchase says their title insurance company will not insure the title on a property bought via quit claim.

However, a second attorney said the title insurance company he uses will insure a quit claimed property. He also stated that the next buyer will be able to obtain a warranty deed since I will have had title insurance.

OVERRIDING CONCERN is whether or not end next buyer after me will be able to obtain warranty deed and thus title insurance. Obviously one lawyer says that I can, but I'm looking for some verification or for that matter refutation. Its also obvious that houses bought through quit claim are mortgaged all of the time, but I'm unfamiliar with what exactly has to happen for that to happen. Last thing I want is to get a rehabbed house under contract and find out it may take months for the buyer to obtain a warranty deed due to the quit claim purchase.

Thanks!

[Bo Wagner]

I checked with my title insurance provider (Old Republic Title) over a year ago when an investor client was about to be stuck receiving a quit-claim from an institutional seller and ORTC didn't have a problem issuing owner's title merely because you receive a QCD through closing. We always pull a full 50 year search and will sort out any issues prior to closing and the issuance of a title policy or else we don't close.

For what it's worth, moving forward, you can sell off using a Limited Warranty Deed (like REO banks typically do) which limits your exposure back to the date when you actually received title, but not further.

And as also noted, you can definitely use the same title company to re-insure if a problem does surface as effectively they are already 'on the hook' for that issue.

(FWIW, thank God no one is using "quick-claim" or "quick deed" on the forums, but of course BP users are much more intelligent ; )