A quitclaim deed is a legal document used to transfer ownership of property.
The grantor of the deed, who is transferring the property, is referred to as the “grantor” and the recipient of the deed, who is receiving the property, is referred to as the “grantee.”
A quitclaim deed is often used in situations where two or more people are uniting ownership of a property, or when a person wants to transfer ownership of a specific property to another person.
Unlike most other legal documents, quitclaim deeds do not include any promises or guaranteed assurances from the grantor that anyone has a legal right to the property. This can make them significantly different from other forms of transfer of property ownership.
The grantor is essentially “quitting” any claims they have on the property, meaning they are surrendering any legal rights or interests they have in it.
The only thing that a quitclaim deed does guarantee is that if there are any other people who have claims of ownership on a property, the granting of the deed will legally negate those claims.
In other words, whoever receives the deed becomes the official owner and whatever legal claims someone else may have had over the property will no longer be recognized in court.
All quitclaim deeds must comply with certain state and federal regulations, so it is important to consult with a lawyer or real estate professional before signing any document.
Following Quitclaim Deed Rules
Most of the time, quitclaim deeds are used to transfer property when there is no sale and no money changes hands.
This could be between family members or people who know each other well. There is no money involved, and there are no legal clauses that protect the parties.
Even though they are less formal than other kinds of deeds, they still have to follow certain rules. The names of the grantor and grantee, a description of the property, and the date when the property will be transferred must all be written on the deed itself.
Then, both parties must sign it and have it notarized before it can be filed at a county clerk’s office. If the property is owned by more than one person, they must all sign the deed.
In some states, you may also need a signature from a witness. If the parties who are giving up their rights live in a different state, it’s important to make sure they sign and have their signatures witnessed in the right way.
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When A Quitclaim Deed Should Be Used
Most of the time, a quitclaim deed is used to transfer property between family members, to add or remove a person from the title, or to fix a simple mistake on the title, like a wrong address or a name that is misspelled.
This comes up a lot in situations like marriage, divorce, and giving gifts or leaving a will.
Quitclaims are also used when it is unclear who in the chain of title may have an interest because of an inheritance, like the decedent’s brother’s wife’s cousin, or a change in marital status, like the children or relatives of a couple who is getting a divorce.
If there is a mortgage on the property, a quitclaim deed does not change who owns the mortgage. Until it is legally given to the grantee, the grantor is still responsible for it.
Quitclaim Deed Vs. Warranty Deed
Deeds are used to transfer property in real estate. There are two kinds of deeds: quitclaim deeds and warranty deeds.
The main difference between a quitclaim and a warranty deed is how well they protect the interests of the grantee or recipient.
A warranty deed changes who owns the property and guarantees that the grantor, owner, or seller has legal rights to all or part of the property. It gives a full description of the property and says that the grantor has clear title to their share of the property.
It also says that there are no liens, restrictions, or other problems with the property. In other words, it guarantees that the grantor owns the property, has the legal right to sell it, and will transfer the title without any liens or claims from other parties.
A warranty deed is more formal than a quitclaim deed. It changes who owns something, but it doesn’t say what that person’s interest is or if the title is good. Simple but limited, it only transfers the legal rights to a property, if they exist, from the grantor to the grantee without any promises, claims, or “buyer protection,” so to speak.
The warranty deed is the more complicated of the two. The title can be transferred just as well with a quitclaim deed as with a warranty deed, but only if the title is good.
On the other hand, warranty deeds give the grantee, recipient, or buyer more protection. The grantee can sue the grantor if the grantor lies about the title or who owns the property. With a quitclaim deed, the person who gets the property would not be protected in this way.
People usually use quitclaim deeds to transfer titles between friends, family members, or former relatives. Warranty deeds, on the other hand, are more common between professionals and in complicated real estate deals.
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Bottom Line
If you want to use a quitclaim deed, you need to know how to write it according to the rules in your state. Language and laws can be different depending on where you are.
Before you start the process, you should talk to a real estate lawyer for help. A small mistake or omission can be expensive in the long run, both in money and in time.
The costs of getting a deed may include the fee of the real estate attorney, who finds out who the parties are, what the legal description of the property is, and prepares the paperwork.
Administrative fees charged by your county or city for recording and filing the deed may also be a cost.
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