Definition of un-warrantable apartment conversion

[littlecb24]

What is the name of your state?What is the name of your state?What is the name of your state? GA

When an apartment to condo conversion is described as un-warrantable, is the description referring to:

1. The actual building or structure being un-warrantable?

2. The construction or improvements done to the converted apartment being un-warrantable?

or

3. The title being un-warrantable (i.e. passing title via Limited Warranty Deed or Quitclaim Deed)? Related to this part, if the description is referring to the title, what implications does this have on title insurance? Can a closing attorney issue lender's and/or owner's title insurance on an un-warrantable title, especially if the title exam shows no title defects? I would think so, because in the deed the seller is "warranting" to the buyer, not the lender or the title insurer. The attorney certifies first lien position to the lender (and consequently the title insurance company) and clean title to the buyer, so should it matter how title actually passes from the buyer's, lender's or title insurance company's perspective?

I think that I may have answered my own questions, but any input would be greatly appreciated.

 

[HomeGuru]

What is the name of your state?What is the name of your state?What is the name of your state? GA

When an apartment to condo conversion is described as un-warrantable, is the description referring to:

1. The actual building or structure being un-warrantable?

2. The construction or improvements done to the converted apartment being un-warrantable?

or

3. The title being un-warrantable (i.e. passing title via Limited Warranty Deed or Quitclaim Deed)? Related to this part, if the description is referring to the title, what implications does this have on title insurance? Can a closing attorney issue lender's and/or owner's title insurance on an un-warrantable title, especially if the title exam shows no title defects? I would think so, because in the deed the seller is "warranting" to the buyer, not the lender or the title insurer. The attorney certifies first lien position to the lender (and consequently the title insurance company) and clean title to the buyer, so should it matter how title actually passes from the buyer's, lender's or title insurance company's perspective?

I think that I may have answered my own questions, but any input would be greatly appreciated.

**A: you need to be asking the lender that question. Tle list is short but could range from physical issues such as the property being located in a flood zone or having mold issues and no insurance could be obtained, the property is in litigation, the units too small or obsolete..to non physical issues ie. the property is leasehold with a short lease, too many issues on title that can't be cleared etc.............