Should I put this property under contract? (Wholesale)

6 Replies

Hi!

I had a property owner call me and she desperately wants to sell her house. It's about 30 minutes from Pittsburgh, PA and sits on a half acre lot.  It's a quit claim deed. The house is not local to me so I had a local contractor visit the house on my behalf. The owner told me that I could see the house anytime because the back door is unlocked (sounds shady) I didn't feel comfortable traveling that distance not knowing what I would be walking in to. The contractor went and was not able to get in because the house is boarded up and has a bunch of no trespassing signs on it. The homeowner lives in California and can not show the house herself. come to find out, she wasn't aware of the no trespassing signs. Is this worth my time? Here's the details: 

3 beds/1 bath single family house (detached) 

1116 sqft

$8000 in back taxes (She says but county records only show $150 in back taxes)

Comps in area: $74,000

Rehab needed: $30,000-60,000 (house is boarder up, no trespassing, etc Contractor was only able to properly see the outside of the house) 

lot size: 1/2 acre

Quit claim deed.

What do you think? 

Why quit claim deed versus warranty deed?

That would be a red flag for me...

I agree with J Scott. A quit claim deed usually indicates that they might only be part owner of the property, and Since they only transfer any interest the grantor (seller)  has in the property to a recipient, called the grantee (you), the deed contains no title covenant and thus offers the grantee no warranty as to the status of the property title. The grantee is entitled only to whatever interest the grantor actually possesses at the time the transfer occurs. This means that the grantor does not guarantee that he or she actually owns any interest in the property at the time of the transfer, or if he or she does own an interest, that the title is free and clear. 

Originally posted by @Martin Chavez :

I agree with J Scott. A quit claim deed usually indicates that they might only be part owner of the property, and Since they only transfer any interest the grantor (seller)  has in the property to a recipient, called the grantee (you), the deed contains no title covenant and thus offers the grantee no warranty as to the status of the property title. The grantee is entitled only to whatever interest the grantor actually possesses at the time the transfer occurs. This means that the grantor does not guarantee that he or she actually owns any interest in the property at the time of the transfer, or if he or she does own an interest, that the title is free and clear. 

 Thank you!