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[quote]QUOTE: Originally posted by MichaelSol [quote]QUOTE: Originally posted by Limitedclear It is impossible to get a loan from a bank based upon a quitclaim, unfortunately. [/quote] ???? It's what the Title Insurance Policy looks like, not the form of the property deed [warranty deed v quitclaim deed], that is important. That is, due diligence goes to the examination of title, not the name of the deed used for conveyance. Best regards, Michael Sol [/quote] A quitclaim deed only grants that interest which the transferor held in the property. Accordingly, if there is a defect in the transferor's title it passes to the transferee without any of the warranties (including the warranty of title) contained in a warranty deed. Accordingly, the type of deed does indeed matter where the property is being evaluated by a lender. Further, I have yet to see a railroad deal with title insurance, nor have I met a major title insurer that will write railroad title coverage. Most railroad have never been surveyed except to the extent there are internal valmaps kept by the railroad itself which hardly carry the weight of an independent surveyor's license stamp. Localities maintain tax maps, but those can be notoriously unreliable in determining the exact dimensions of the property. Also, many railroads have some portions that are owned in fee and other portions that are easements "for railroad purposes" which indicates an old negotiated easement or an easement that resulted from an eminent domain taking or perhaps cetain state or federal land grants, depending upon the language of the grant (most are over a century old too, so finding the grant can mean extensive legal research all by itself) Taken together this makes banks extremely nervous about lending for RR deals based upon the real property. Some banks will lend for specific projects but most RR loans come from government sources. LC
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