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In looking at properties on one of the popular property aggregator sites, I've seen some transactions labeled as being "insured non-residential grant deeds." This is usually accompanied by a sale at a price obscenely low compared to prevailing market rates (an 80% reduction in price in some cases).

Part of me thinks these are cases where the cost of repairs exceeds the value of the home, but some of these are $500k houses being sold for $50k-- the "non-residential" clause and fire-sale pricing makes me think these are meth lab cleanups or asbestos/mold remediation projects just one step away from condemnation.

I just can't find a straight answer (any answers, really).

Anybody else have any insight into what this term actually means?

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  • Grant deeds only exist in a few states in the United States. You should check with a local attorney rather than seek advice on here. The terms will vary from state to state enough that you won't get detailed enough advice here. It does, however, look like a scam.
    – Dave Harris
    Nov 19, 2017 at 22:01

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I've seen this pattern in undeveloped lots that are transferred to Pretium Partners, LLC and held until ready to develop the property. Properties pooled into same locals, streets, and neighborhoods. The property is then sold back to the REO Private Investor Groups via the "Insured Non-Residential Grant Deed." They will build the homes and in my pattern examples will sell to straw buyers. A Substitute Trustee's Deed postures a phony foreclosure. After equity is skimmed the properties are "flipped" (laundering the chain of Property Title) back to Pretium Partners, pooled as an investment returning long term profit back to the banks that have enabled this fraud scheme. In a Grant Deed no party guarantees the Property Title. This is because the Property Flip facet of this scheme requires hiding the chain of theft in the MERS System, selected title transfers and sales withheld from the county Register of Deeds office. Here is a good link with good description of a Grant Deed. A transfer among investors and not a residential sale. In fact... these properties are never offered to the buying public on a level playing field though that pretense exists. Start to finish a conflict of interest, arm in arm, fraud scheme. https://www.biggerpockets.com/renewsblog/2015/06/23/title-deed-real-estate/

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    What's your evidence of fraud? (The link mentions nothing about fraud.)
    – RonJohn
    Nov 19, 2017 at 20:45
  • If you want to read about the chain of theft that impacted me a good overview is my appeal at the 6th Circuit. Case No.17-5618, Alexandra Clair v. Bank of America, N.A. et al... Thanks for the inquiry. When absentee land lord ownership outnumbers private property ownership well... history has shown us where this leads. By use of this fraud scheme Banks are feeding property to this market.
    – Alexandra Clair
    Nov 21, 2017 at 16:28
  • "my appeal" IOW, you lost at trial?
    – RonJohn
    Nov 21, 2017 at 17:24

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