I bought a house with a quick claim deed help!!!

3 Replies

I bought a house in Michigan from a neighbor of my family’s and he gave me a quick claim deed, and I’m new to the real estate world. Just 2 days ago I found out that the house was owned by the land bank!!! What do I do if I paid cash for the house and have already started cleaning it out and fixing on the property? Please help thanks

How are you coming to know just now the property is owned by the land bank?  I take it there was no title/escrow Involved & you had no agent or attorney representing you?

The seller quit their interest in the property to you. If they didn't have any ownership interest to give, or 'quit, it is worthless.

Sorry, but you got a quick claim to nothing. Always run an E&O search with a title company. Will show you ownership and encumbrances for about $150.

@Frank Brown You need to lawyer up RIGHT NOW, and be sure you get an attorney who specializes in real estate.

BTW, it's a "quitclaim" deed.  @Steve Vaughan is exactly right - a quitclaim deed simply transfers the grantor's interest in the property to you, the grantee.  If the title is cloudy, you inherit the cloud.  

You might have a case for fraud, but your attorney will help you to figure that out.  Of course, collecting on a judgment is another thing entirely.

I'm sorry you're going through this, but I hope it's a lesson to other new investors.  Always use an attorney or title company to close - and buy OWNER'S title insurance, not just the lender's policy.

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