Quit Claim Deeds, Can they be cleaned up?

2 Replies

After doing a little bit of research via public records, I don’t see any break in ownership or issues with the deed of a vacant lot I’m interested in. The realtor said the current owner has Quit Claim Deed that would be transferred to me at closing.

This is a very inexpensive lot and I’m doubtful there are any unseen liens or family members willing to lay claim on the lot. I would like to build a small rental home or even a low priced spec home.

I’ve purchased a lot and built in this area before with pretty good luck in selling, but not on a lot with a Quit Claim Deed. How tough will it be to turn a Quit Claim into a General Warranty Deed?

I would discuss with a local title insurance company: what would it take to insure the next transfer from you to your buyer in order to secure title insurance?  

You can't turn a QCD into a WD, as the trite saying goes, it is what it is.

Even if there isn't a break in the chain of title it doesn't mean you're home free.  If the current or former owner has a judgment against them that under SC statutes is a lien on the real property, then it continues as a lien even after you take title, unless and until a release is obtained.  Additionally, while the property may not be worth much now, I assume it will be worth considerably more after you improve it with a house.  The increase in value may be enough encouragement for a lien holder to bring an action to force a sale to recover what they're owed.

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