Seller (Bank) Only Offering Quit Claim Deed

[TJ396]

New York

We are interested in a property that was forclosed and an out of state bank now owns it. The bank is represented by a local real estate agent. My agent (another company) informed me that they are only offering a Quit Claim Deed. I want the security of a General Warranty Deed or a Warranty Deed with Full Covenants. My real estate agent recommended that I pay to have an abstract search but he was unsure if I can get a warranty deed even after I do that. How can I get a Warranty Deed for this property?

Thank you

 

[HomeGuru]

New York

We are interested in a property that was forclosed and an out of state bank now owns it. The bank is represented by a local real estate agent. My agent (another company) informed me that they are only offering a Quit Claim Deed. I want the security of a General Warranty Deed or a Warranty Deed with Full Covenants. My real estate agent recommended that I pay to have an abstract search but he was unsure if I can get a warranty deed even after I do that. How can I get a Warranty Deed for this property?

Thank you

**A: the bank policy is to only issue the quit claim deed.

 

[justalayman]

So be sure you do buy title insurance for you.

 

[HomeGuru]

So be sure you do buy title insurance for you.

**A: and read the current title report before closing.

 

[TJ396]

Thank you for the advice.

Is there any way I can pay to get a warranty deed or will I be stuck with the Quit Claim? My concern is when I go to sell the house I will have a problem.

 

[HomeGuru]

Thank you for the advice.

Is there any way I can pay to get a warranty deed or will I be stuck with the Quit Claim? My concern is when I go to sell the house I will have a problem.

**A: there is no way if the bank/seller chooses not to. Period. End of discussion. That is the norm when buying foreclosed reo property from the lender. Get with the program.

 

[Ohiogal]

If you really want a warranty deed or general warranty deed you can always deed the house to yourself that way. Okay so it doesn't solve the problem but title insurance will determine who has proper title to the house to dispose of it and a general warranty deed is not that big of deal if the title has been fully researched. Just make sure you invest in that.

 

[HomeGuru]

If you really want a warranty deed or general warranty deed you can always deed the house to yourself that way. Okay so it doesn't solve the problem but title insurance will determine who has proper title to the house to dispose of it and a general warranty deed is not that big of deal if the title has been fully researched. Just make sure you invest in that.

**A: you are right, that will not solve the problem. Especially in a chain of title search and when the writer sells giving a warranty deed. Too much exposure. That is why the bank is not giving a warranty deed.

 

[Ohiogal]

Homeguru,
That is why I said it wasn't a perfect answer -- it was just an answer.
I'm learning. I bow to your superior knowledge. And no that is not sarcasm.

 

[HomeGuru]

Homeguru,
That is why I said it wasn't a perfect answer -- it was just an answer.
I'm learning. I bow to your superior knowledge. And no that is not sarcasm.

**A: ok, gal, gotcha.

 

[TJ396]

It sounds like the type of deed isn't much of an issue as long as I have title insurance.

Thank you for your help.

 

[HomeGuru]

It sounds like the type of deed isn't much of an issue as long as I have title insurance.

Thank you for your help.

**A: not true since title insurance only insures the title "as is". If there are liens or other encumbrances such as encroachments etc. on title, insurance is not going to help. Search title insurance and read up.

 

[LindaP777]

**A: not true since title insurance only insures the title "as is". If there are liens or other encumbrances such as encroachments etc. on title, insurance is not going to help. Search title insurance and read up.

HG, just for my own clarification, if there was something identified on the title search, the buyer would have that option of buying it "as it" with the lien still on it, right?
Now if that same property was being financed, the lender would refuse to give financing due to the fact they wouldn't be #1? So when I have a title search (and go to closing) on a property I'm getting financing on, can I safely assume the title was clear (even though I have not read the report, as you so often instruct)? I've always assumed the professional would have let me know if something was amiss.
BTW - always, always get buyers title insurance. (Lenders require it to protect their interest, but it does not cover the buyers interest!)

 

[seniorjudge]

Q: if there was something identified on the title search, the buyer would have that option of buying it "as is" with the lien still on it, right?

A: Right.


Q: Now if that same property was being financed, the lender would refuse to give financing due to the fact they wouldn't be #1?

A: Yes, it's possible.


Q: So when I have a title search (and go to closing) on a property I'm getting financing on, can I safely assume the title was clear (even though I have not read the report, as you so often instruct)?

A: No, you cannot assume anything. Read the title report.


Q: I've always assumed the professional would have let me know if something was amiss.

A: Bad assumption.

 

[HomeGuru]

I agree for the most part with SJ.