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letsgo08 · Sep 5, 2008, 10:10 AM

The seller did not specify what type of sale it was on the Auction listing. However, it was said that buyer must do due dilligence about the property. So, I asked the seller about any other cost such as liens, back taxes or loan/mortgage on the property? He replied that there may be around $500 back taxes owed and he sent a report that kind of supported his answer (taxes owed from 2006 for $129).

I thought that I could deal with that number as it was not too high. So I purchased the property through auction. It was until I receive the deed that I discovered that this is a quitclaim sale (this was never mentionned on the auction listing). To make matter worse, I have been slapped with two tax bills the school municipal and the county totalling $19K.

WHAT CAN I DO?

letsgo08 · Sep 5, 2008, 10:14 AM

Can the grantee reverse or reject a quitclaim deed?

rockinmommy · Sep 5, 2008, 10:26 AM

Due Dilligence goes WAY beyond asking the seller what may be owed on a property.

Have you paid for the property? What exactly has transpired so far?

deedgrabber · Sep 5, 2008, 01:44 PM

Has the deed been recorded? If not, destroy the deed.

If so, I don't know if you could do anything. Some states allow a "disclaimer of interest" to be recorded but I don't know if that would work if there is only a single grantee.

letsgo08 · Sep 5, 2008, 03:20 PM

The grantor/seller never mentionned the type of deed on the listing. I asked him about any other costs such liens, back taxes etc... His response was there may be around $500 of back taxes owed based on the county's report. I thought that I could work with that.

But, I found out I am getting a quit claim deed when I receive the deed? To make matters worse, I am getting slapped with a county and school Municipal tax bills totalling $19k.

I Want to reject the sale based on fraud/trickery. Do you have a claim or is it possible?

LisaB4657 · Sep 5, 2008, 06:52 PM

Whether you have the right to cancel the sale depends on the wording of your contract and the listing. Most standard contracts provide that any outstanding taxes will be deducted from the seller's funds and paid at closing. The type of deed you will receive is usually addressed in the contract as well.

As long as you get a title search done and then buy the title insurance policy then receiving a quit claim deed isn't that bad.

letsgo08 · Sep 5, 2008, 11:49 PM

Here is the exact wording featured on the listing? As already stated there was no mentionned of quitclaim or warranty deed?

SELLING THIS HOUSE AS-IS. Bid Price + 10% premium is the total purchase price for title. Do whatever you want with the property after that. Fix it or keep just the land and rebuild.

Can I reject /reverse this transaction?

letsgo08 · Sep 5, 2008, 11:52 PM

Here is the exact wording featured on the listing? There was no mentionned of quitclaim or warranty deed?

SELLING THIS HOUSE AS-IS. Bid Price + 10% premium is the total purchase price for title. Do whatever you want with the property after that. Fix it or keep just the land and rebuild.

I receive a quitclaim deed as final paperwork. That's not what I expected?

Can I reject /reverse this transaction?

LisaB4657 · Sep 6, 2008, 06:36 AM

I saw that you had another post where you said this property was sold at auction and that you had the opportunity to do due diligence before the auction. That was the time that you should have ordered the title search. The title search would have shown the outstanding taxes and you could have adjusted your bid price to allow for those taxes. From what you've told us here I don't see how you can reverse the transaction now.

ScottGem · Sep 6, 2008, 06:40 AM

Please do not keep posting the same question. I've merged all the threads into one. I think your question has been answered.