Quitclaim deed OK, but title insurance needed
Sellers who are divorcing often use such a deed, but buyer needs to protect self with owner’s policy
Q: We are trying to buy a house from a couple involved in a nasty divorce. They each have “street fighter” divorce lawyers who use one tactic after another to delay the sale closing. Just when we get close to a closing date, it gets postponed. The latest tactic is we will get only two quitclaim deeds, one signed by the ex-wife and one signed by the ex-husband. Is this dangerous for us?
A: No. Quitclaim deeds are very common in divorce situations. Neither ex-spouse wants to make any warranties or representations as to the condition of the property title.
Your best protection is to obtain an owner’s title insurance policy from a reputable title insurance company. Read it very carefully to be certain there are no liens or encumbrances you weren’t expecting. It is perfectly safe to accept a quitclaim deed if you also receive an owner’s title insurance policy.