Help! Difference between Quitclaim Deed & Special Warranty Deed
I'm currently in the process of purchasing my first foreclosure which happens to be a VA owned property. We are scheduled to close on this property on 1/12/21. Today I received an email from the escrow company that I've copied below.
The Deed has been recorded and is finally indexed on 669 Artic. The VA will allow closing to take place by 1/12 if you are willing to accept title via a Quitclaim Deed rather than a Special Warranty Deed. The VA has not issued approval to close with a SWD yet. The alternative would be to extend the contract closing date until the VA has a SWD approved to close (but there is no timeframe for that). We can insure on a VA closing with title insurance just the same on a Quitclaim Deed as we do on a Special Warranty Deed. Are you OK with proceeding forward with the Quitclaim from VA?
As stated, this is my first foreclosure deal and also the first time I've come across the possibility of closing a property via quitclaim deed. Seems the title insurance will be issued in the same manner either way, so is there really anything I should be concerned about? Will it be harder or take longer to have this recorded/transferred into my name or cause issues down the line? This is a cash purchase with no lenders involved and the reason why this option even exists. Any feedback would be great.
Most Popular Reply
A SWD is typical in a foreclosure. I would recommend you wait for one and not do the quit claim. A quit claim deed is only transferring the interest held by the person issuing the quit claim. There could be others with ownership in the property as well.