Quit Claim Deed, Yes or No?

[Charles Mazzini]

I won an auction on a house and the contract consist of a Quit Claim Deed.  I did research at the county clerk office and the property seems to have no liens, but from what I understand, there is not only no warranty on the deed but no title company will insure a QCD.  In addition, from what I understand, once a QCD is issued on a property, the property can no longer have a Special Warranty Deed if I sell it.  This means that I may have difficulty selling in the future.

So my question is this. Does anyone recommend buying property on a QCD or should that be something to avoid at all cost?

[Charlie MacPherson]

You CAN get title insurance with a Quitclaim deed.  When I was licensed in Massachusetts (not too long ago), virtually every property conveyed with a QC deed and buyers routinely got title insurance that covered both them and the lender.

Whoever provides that insurance will run a title exam and it will have to meet their standards, but I assure you, QC deeds can be insured.

To be sure we're on the same page, a QC Deed transfers whatever interest the seller holds to the buyer.  It doesn't not guarantee a clear chain of title.

A warranty deed protects the buyer from prior clouds and defects.  I've only seen a SPECIAL Warranty deed in foreclosure sales.  That protects the buyer from defects that occured during the seller's ownership of the property.  In a foreclosure, the seller is typically the bank, so they're trying to shed liability. https://www.investopedia.com/t...

The bottom line is that you need someone - attorney or title company - to do a thorough title search and issue a policy that protects YOU and not just the lender.

Good luck!