What exactly was defective about it? 

Quitclaim deeds are designed primarily to cure title defects, NOT to transfer title to property.I've seen many situations where a title company will refuse to insure a property on a subsequent sale when title was required by quitclaim deed.Also, you could potentially be voiding your present title insurance policy if you use a quitclaim deed.To me, quitclaim deeds are one of the most misunderstood and misused things in real estate.I could do a 3 hour course on why NOT to use quitclaim deeds in most situations.

I won’t be chasing foreclosures again until I have cash  Interesting...if there are no obvious defects in the roof it probably would not be flagged by the appraiser. 

I have received more than a few letters mainly from Wells stating that they will but they turn out to be smoke.To remedy the defect if you transfer the deed w/o paying off the note just transfer the deed back to your name, send them proof and then at some later date transfer it back to the buyer.

Tell him what you expect and ask questions about defects.

It wouldn't hurt to contact the inspector and mention these defects to him and make sure they were in fact tested.

The only exception to this is if the seller intentionally or fraudulently tried to cover up a defect.

Yes, I did purchase a standard owners title insurance which after reviewing, says it covers the following: - A third party claims interest in title- Improperly executed document- Pre-policy forgery, fraud or duress- Defective recording of documents- Undisclosed restrictive covenants- A lien on your title- Unmarketable title

FSBO (for sale by owner) often believe that if they state the sale is "as-is" that they do not need to disclose material defects to the property.

That means all wiring up to code, new plumbing, fixing just about every known defect in the house.