Type of deed used in Wholesale purchase agreement?

Question

Hi,

Can anyone out there give me some advice on how you structure you wholesale purchase agreements. By structure I mean, do you require seller to provide a "Special Warranty deed" or do you require Quick Claim deed? Also, do you account for Title Insurance? This is all new to me. I appreciate any feedback

Thanks,

Anthony Micklus · Answer

Ideally you want to get a General Warranty Deed, this provides the highest protection for the buyer. A quit claim deed is actually the lowest level of protection as it has no covenants or warranties on the title. The Special Warranty Deed and Bargain and sale deed only guarantees that the grantor (owner) has title and that at the time of the transfer the property was not encumbered but someone could easily lay claim on it at a later date at which time you would have very little legal recourse. I would recommend that if you are getting anything other than a General Warranty deed you should purchase title insurance.

Guy Gimenez · Answer

A "wholesale" purchase agreement is nothing more than a "purchase agreement", so there is nothing special you need to do other than trying to get a very buyer friendly contract that can be assigned or otherwise sold to an end investor.

I can't comment on deeds in PA, but in Texas, quit claims are not recognized by Texas title companies so a special warranty deed would be the way to go in our neck of the woods.