I bought a property that only had a quick claim deed help!!!

8 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

Frank can you call  me on Monday?  i own a title company in Michigan called Legacy Title and we can look to see what is needed or if it is ok......  my phone is in my profile or private message me

Thank you so much I really appreciate it what’s a good time to call

A title company will help you. For the record, I never purchase with a quick claim as it often places buyer at risk, offering little assurances.  Good luck!

I’m interested in hearing how a title company can help someone after the fact who paid cash for a quitclaim deed from a non-owner... or subject to existing financing. 

@Frank Brown so you just handed somebody money for this property, no closing, no attorney, no title search?! Just trying to wrap my head around the context of how this "sale" occurred. 

Dont ever, ever, EVER close without a title company. The title company will make sure that this does not happen. If they make a mistake, they will pay up to the amount of the the purchase.

Maybe the title company can help clear up some liens or at least let you know how you can get good title. I would definitely speak to a title company immediately.

Think about the name, "Quit Claim". The sellers are quitting their claim on the property. It does not say that they own the property, but merely quitting their claim. The legal definition says something like IF they have an interest in the property they are giving you that and that only.

You would want to purchase a property from someone who is guaranteeing that they own the property and that they will defend the title and that their heirs will defend the title. 

"Quit  claim", not "quick claim".  As @Rick Pozos explains that sort of deed means the grantor is giving whatever rights they have to the grantee.  Those rights may be absolutely nothing, but its still a valid deed.  Quit claim deeds are legitimately used when ownership is unclear and one person might have a claim based on that ambiguity.  A poorly worded will, for example. 

@Frank Brown you should contact a title company and have a title search done on this property.  If the "seller" did, in fact, not own the property then your quit claim deed is worthless.  It gives you no rights to the property if the seller had no ownership.  The next step would be to take action against the seller to get your money back.  Hopefully there is just some confusion and it can be resolved.  Always buy with a warranty deed and always have the seller provide you with an owner's title insurance policy.

Your in good hands with a title company. They can run a title search and check out the ownership details/records for you. 

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