QUESTION

I,am looking into buying a piece of rural acreage in suburban estates in Osceola county (1.26acres).The owner only has a quitclaim deed,

Asked on Feb 19th, 2012 on Real Estate - Florida
More details to this question:
The owner informed me that he can not get a warranty deed and that all of the parcels in this 10,000 acre estate are aquired with a quit claim deed. Are there instances where a quitclaim deed is acceptable to complete the transaction? He is not a relative and it would be cash deal. thank you
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1 ANSWER

A quitclaim deed transfers legal title, but comes without warranties of title.  Therefore, if there is something wrong in the chain of title you cannot make any claim against the prior owner. One solution for this is to get title insurance on the transaction.  The title underwriter will conduct a search of the chain of title (and some other things) and assuming the search shows that title is "marketable", will issue you an owners title insurance policy.  Usually lenders would require title insurance, but since you indicate that there is no lender, no one would force you to get title insurance.  However,  I think the risk these days of title problems (especially in light of the problems that have arisen due to foreclosure and real estate crises) together with the quitclaim deed really points to the title insurance solution. For title insurance, a single premium is paid at closing.  There are minimum "promulgated" rates required by statute in Florida.  There are also some other costs associated (search fees, e.g.) and sometimes credits (prior policies, e.g.).  You might want to require that the seller pay for and provide this coverage, and also pay for the documentary stamp tax on the deed. This is specific to Florida law and does not constitute legal advice as the facts presented are anonymous and incomplete. This is intended for general education only and does not create an attorney-client relationship. This should not be relied on and you must seek your own attorney client relationship.
Answered on Feb 22nd, 2012 at 2:00 PM

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