LandInvestors.com Forums **Ask A Question** Limited Warranty/Quit Claim Vesting Deeds

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    Ellis
    Participant
    Post count: 43

    Question.

    Generally speaking, how does everyone handle an acquisition where the vesting deed is a limited warranty or quit claim deed? Title companies won’t insure them. So, unless selling wholesale to an investor, it will be difficult to sell to an end user as most end users want title insurance…right? I’ve been passing up on good deals due to this issue. I’m aware quiet title suits and/or quit-claiming from previous owners are options as well, but they take time and upfront money.

    I’m curious what everyone else does or has experience with.

Viewing 6 replies - 1 through 6 (of 6 total)
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  • Kyle Bryant
    Participant
    Post count: 71

    There are a few ways around this. First of all, not all end-user buyers want to buy with title insurance. For purely recreational properties, title insurance many times isn’t necessary (or for smaller dollar properties). I’ve sold several properties outside of title on the sell side.

    Another option is to use a title curative service like taxtitleservices.com (if you have a tax deed). They will perform title curative work without doing a quiet title action.

    But my first option would be to sell to people who don’t need title insurance to purchase your land. Be up front about what type of deed you are giving them, and hope for the best. If it’s a good enough deal, someone will buy it eventually (that’s my philosophy at least).

    Rod Hall
    Participant
    Post count: 355
    Pro

    A quit claim is also used to transfer from individual to a trust or family member. I have no problem with these kind.

    Shawn Swisher
    Participant
    Post count: 71
    Pro

    When you say vesting deed, are you talking about how the seller acquired the property or how you are acquiring the property from the seller?

    "Buy land, they're not making it anymore." -Mark Twain
    Ellis
    Participant
    Post count: 43
    Pro

    By vesting deed, I’m referring to the deed the seller has. The seller purchased the property from the state at a tax sale. The seller received a limited warranty deed.

    Shawn Swisher
    Participant
    Post count: 71
    Pro

    Ok, that’s what I was thinking but wanted to confirm. I’ve had title insure property where the vesting deed was a limited warranty deed or a quit claim deed. I’m too new at this to know if that’s normal or not but they sold me a policy. They weren’t tax sales though so maybe that’s the difference.

    "Buy land, they're not making it anymore." -Mark Twain
    Kevin Farrell
    Moderator
    Post count: 1728
    ProAdvanced

    Ellis – I will jump in here as “not an expert” and give you my opinion. Limited Warranty deed is insurable in most cases. A quit claim deed is usually between family members or from family members to/from trust. This is called a “non-arms length transaction”. When a quit claim deed is used for an arms length transaction it may be considered inappropriate use of a quit claim, and thus is not insurable for that reason. There are many articles about the different kinds of deeds and when they should be used on the internet.

    Kevin Farrell - Moderator
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