Right, but the bank just verified the buyer, they aren’t in the business of verifying that the buyer isn’t buying some variation of the Brooklyn bridge.
I honk quite claim deeds are the problem. Require warranty deeds for loans and sale of property. Quit claim deeds should be for possible tangential owners of a property. People who buy property should buy title insurance.
Correct. That's why if you are using a loan to buy a piece of property, the lender insists that you buy lender's title insurance. It will protect the lender in a case like this.