I am interested in bidding on a single family home on auction.com. The property is being sold without title insurance, and the owner (a bank) will offer a quit claim deed. There is no inspection of the property allowed, and the property is already occupied. I'd like help identifying the potential risks of losing money by buying this property, so I can see if it is worth it to a) accept the risk, or b) reduce/eliminate the risk somehow.
Hire a real estate lawyer to search the title, get property tax information and review all other facts. Otherwise, all your money is at risk. You say it is being sold without title insurance, but that does not stop you from getting it. If the title is uninsurable, the answer is usually pretty easy.
Real Estate Attorney
It is very risky to buy an online property without ever seeing the property, without having the property inspected by a professional inspector and without a title search. Georgia is a caveat emptor state, meaning buyer beware. It is the Buyer's responsibility for due diligence. You can do some due diligence but you cannot eliminate risk. If you have a title problem that does not show on the face of the title search and you cannot get the problem insured over by a prior policy, you have a host of possible serious problems. The seller is conveying via quit claim deed I.e. without warranting the title.
I agree with my colleagues - hire an attorney and pay for a title search and a Phase I environmental due diligence search.
There may be tax liens, creditor liens, mortgages, easements, use restrictions, or environmental contamination (leaking oil tank, asbestos, etc).
If you buy the property without doing the searches, you may be paying for a whole lot of headaches.
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