Warranty deed vs title insurance

Title insurance will give you fairly certain assurance that you are getting clear title. It will also provide you a defense in the event a title issue should arise and a fund from which to pay if the title issue leads to a loss. The difference between a warranty deed and a quitclaim deed is whether you would have a right of action against the grantor. Ideally, you would be receiving a warranty deed, which would be the expectation in most transactions in which you're paying value for the property. The seller should be willing to warrant his ownership and right to sell, but there are circumstances in which a quitclaim deed is appropriate. Perhaps the seller's basis for using a quitclaim deed would reveal something to you. In any event, if you are getting a deal with which you are satisfied and getting a clear title policy (considered by an attorney), then the seller's use of a quit claim deed should not necessarily discourage you.

a warranty deed and title commitment are two different things. You will get a deed from the seller. I would not accept a quit claim deed. While title insurance guarantees you get good title, it will only guarantee you get a good quit claim deed. A quit claim deed Only transfers the interest the seller has. So, if the seller doesn't own the property, you get nothing. Jeff Jacobson (redacted)

I agree with Mr. Repay and would further add that you should still be leery of a quit claim deed and under the circumstances, you most definitely should hire a real estate attorney to review all documents and protect your interests. Fees for such a transaction are minimal but could protect you and prevent disaster down the road. Title insurance and deed are different documents/concepts although they are both part of a real estate transaction.

Don't accept a quit claim deed. If seller is not willing to warrant clear ownership/title then he's hiding something. I would strongly suggest you hire a real estate lawyer to review this transaction. The fees are nominal and can save you a lot of headache.

One question I have is what kind of deed the contract requires. The standard contracts require a general warranty or warranty deed. You should contact a real estate attorney and send him or her your contract to review, at least.