Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
9y
It is an excellent deal. The tax deed when issued wipes out all but a few outstanding liens even erases mortgages. I have a good many houses with SC tax deeds that I keep as rentals. I've sold a few to a cash buyer with a Quit Claim deed.
You can hunt down the previous owners get some paperwork signed and ask for a mortgage release if there is one and often clear up the deed pretty easy. Also SC only has a 12 month redemption period and the county mails you a deed if the property isn't redeemed. That is why SC is in the top 5 best states to buy tax liens.
a non-warranty deed or a quit claim deed just states that the owner is transferring their rights. It doesn't give warranty or protection about any other claims.
They are often used to remove or transfer ownership, like removing or adding family members, that aren't part of a regular sale.
Attorney · Akron, OH · Member since 2016 · 535 posts · 389 votes
9y
It's crap and don't take it. The grantor literally makes no warranties as to the status of the title or other covenants. Like, if you get a warranty on a car, they are warranting that the parts work. Here, the grantor is not warranting that the title will work. So it is the least safe option for a transfer.
You want either special warranty deeds or general warranty deeds.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
9y
This is why you should buy BOTH kinds of title insurance. Lenders will normally insist that you buy a policy that protects them. You should also buy a policy that protects you.
Of course, all that should come after a proper title search.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
9y
It is an excellent deal. The tax deed when issued wipes out all but a few outstanding liens even erases mortgages. I have a good many houses with SC tax deeds that I keep as rentals. I've sold a few to a cash buyer with a Quit Claim deed.
You can hunt down the previous owners get some paperwork signed and ask for a mortgage release if there is one and often clear up the deed pretty easy. Also SC only has a 12 month redemption period and the county mails you a deed if the property isn't redeemed. That is why SC is in the top 5 best states to buy tax liens.