AUCTION.COM buyers need to read the contract before bidding

AUCTION.COM buyers need to pay close attention to their contract for an auction property. We recently reviewed a contract where auction.com on behalf of Bank of America was selling a $120,000 property cash via a QUIT CLAIM DEED. What does this mean to the consumer? Though there is nothing illegal about this type of deed, it provides no assurances, warranties or title insurance from the seller. It the least secure form of transfer and the seller has no responsibility to convey clear title. The property can have other mortgages, liens, judgments and you are accepting any title defects upon signing their closing documents. Hire a real estate attorney or title company and conduct a full title search before bidding on any auction property. If it is too good to be true, it probably is. Here is a sample of the nebulous contract: