Posted on: 27th Jul, 2007 10:27 am
i found a good house to buy. but i just noticed on the county assessor website, the seller purchased the house 6 years ago with quit claim deed, rather than warranty deed. if i buy the house, is there any problem on title transfer and title insurance?
Hi Flora,
Welcome to Mortgagefit discussion board.
There is no problem with the use of a quit claim deed for acquiring property ownership. If there were no liens on the house then he holds clear title to the house.
But before purchasing the house you have to perform a check to know if there are any liens against the house and a title search will be useful in this regard. A title search will locate if there are any liens on the house title or not.
If it is found that the title is clear then you can go ahead with the purchase. And there will not be a problem in getting title insurance.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
There is no problem with the use of a quit claim deed for acquiring property ownership. If there were no liens on the house then he holds clear title to the house.
But before purchasing the house you have to perform a check to know if there are any liens against the house and a title search will be useful in this regard. A title search will locate if there are any liens on the house title or not.
If it is found that the title is clear then you can go ahead with the purchase. And there will not be a problem in getting title insurance.
Do let me know if you have any other questions.
Thanks
Blue
"I found a good house to buy. But I just noticed on the county assessor website, the seller purchased the house 6 years ago with Quit Claim Deed, rather than Warranty Deed. If I buy the house, is there any problem on title transfer and title insurance?"
Warranty deed is most appropriate to get property ownership as then you have the assurance that seller is warranting clear title. But with quit claim deeds it is not so.
Your concerns regarding use of quit claim deed are reasonable. To get assured that the seller is holding clear title to the house, before the purchase is finalized you should contact a title company for performing a title search. A title search will reveal liens if they exist.
Warranty deed is most appropriate to get property ownership as then you have the assurance that seller is warranting clear title. But with quit claim deeds it is not so.
Your concerns regarding use of quit claim deed are reasonable. To get assured that the seller is holding clear title to the house, before the purchase is finalized you should contact a title company for performing a title search. A title search will reveal liens if they exist.
"If I buy the house, is there any problem on title transfer and title insurance?"
If the title is clear then you will not face any difficulty in getting title insurance for the property.
If the title is clear then you will not face any difficulty in getting title insurance for the property.