Why so many Quit claim deeds in Detroit?

Question

Came across “quit claim deeds” for the first time today as I was researching low cost houses/rehabs in Detroit? Is it best to steer clear or just research to ensure the title is clear?

Lavance Reed Jr · Answer

@Tiffany Grant I'm in the Detroit market and quit claim deed's are used to avoid the fees of a title company. They are also commonly used when there are lien's, mortgages, or money owed for taxes and a warranty deed cannot be obtained without these things being taken care of.  This is generally only done on cash sales and prevent the buyer from having added expenses until they decide to do something with the property. Many homes are in a state that no bank will give a conventional loan so it tends to be a benefit to acquiring a property and making necessary updates or repairs to get it habitable again. As an investor always check the title with a company and consider title insurance. Everyone doesn't always own what they are trying to sell in Detroit. There also may be additional owner's. Good luck!

Clint Shelley · Answer

They don't want or cannot warranty against a title defect. Just look at the description. If it's the same as previous conveyances, then see how the prior properties were conveyed. If yours is the first QCD, ask more questions and get title insurance.

Clint

Tiffany Grant · Answer

I guess a better wording of my question would be, for seasoned investors that have done deals with QCD, what has the outcome normally been? Assuming due diligence is always done, and the title research is completed, which would expose title concerns, what benefit does the seller have by doing this? Trying to understand why a seller would choose this when not selling to a family member or something of that nature.

Why so many Quit claim deeds in Detroit?

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