Buying from Sec. of Ag

[Chris Lee]

I’m a new investor. I’m looking at buying a foreclosure and the listing reads, “...Seller is the Secretary of Agriculture. Seller to convey title via quit claim/non-warranty deed only. Property was built prior to 1978 and lead based paint potentially exists.”

The paint thing is straightforward enough. It’s the quit claim issue I’m wondering about. As I understand it, a quit claim may or may not convey clear title. And I’d be on the hook for doing the title search and uncovering any liens on the place. But assuming there aren’t, I should be able to sell it later (i.e. after renovations) and convey a warranty deed like any normal sale. Is that correct? What other issues could this pose and/or what should I watch out for? In other words, what’s the worst case scenario here? 

Thanks in advance!