Any potential interest that one person may have in a piece of property can be transferred to another using a quitclaim deed. It doesn't offer any ownership assurance.
A Quitclaim Deed: What Is It?
A quitclaim deed transfers any interest in real property. If the grantor has any ownership interest in the property, they formally and publicly transfer it to the grantee. The person who transfers ownership of a property is known as a grantor. Even if the grantor is not in the title, they can transfer an acquired interest. For instance, a grantor who is married to the property's owner may execute and record a quitclaim deed to transfer to the spouse any interest the grantor may have acquired in the property. The grantee is the spouse in this case. Quitclaim deeds cover only the grantor's interests at the time of the transfer. The prior quitclaim deed shall not apply to any rights which the grantor may hereafter acquire in or to the property. It's important to note that a quitclaim deed does not imply that the grantor has a real interest in the property or that the title is clear. For sales, which make use of warranty deeds of grant deeds, quitclaim deeds are not used. As an alternative to a quitclaim deed, there are some situations that might require an interspousal transfer deed. However, in certain circumstances, they can be useful.What Is the Process for a Quitclaim Deed?
When there needs to be an easy transfer of ownership, quitclaim deeds are helpful. One of the most frequent causes of quitting your job is divorce. In the case of joint home ownership, a quitclaim deed would have to be executed by the spouse who will not remain in the house. To the spouse who kept the house after the divorce, they would transfer interest in the property. This also holds true when someone merely passes a house on to a relative. Consider a father who wants to give his son a house without expecting anything in return. He could sign a quitclaim deed. There are other scenarios in which you might experience title problems. It might prompt inquiries about who owns it. Lawyers might try to get that person to sign a quitclaim deed, giving up any potential claims they might have to the property. Attention: If you don't know the person who is giving you the property, a quitclaim deed is not a good idea. Before executing a quitclaim deed to transfer property ownership, you should be certain that the recipient has legal ownership of the property.Effect of Mortgage
The name of a borrower is still listed on the mortgage after a quitclaim deed. This doesn't also release a borrower's obligation to make mortgage payments. Only in the rare instances of a refinance, a mortgage payoff, or the sale of the property that results in a mortgage payoff is a borrower released from the obligation.A Quitclaim Deed: How to Draft One
A quitclaim deed can be downloaded from a variety of websites. Your quitclaim deed must, however, have been properly drafted. You should also make sure that your interests are safeguarded. In many cases, speaking with a real estate-focused attorney or other legal experts is advisable. Along with being notarized and recorded in the county where the property is located, the deed must also be there.Deeds of Interspousal Transfer versus Quitclaim Deed
Similar to quitclaim deeds, interspousal transfer deeds release the parties from further claims to the community property. It can be signed by a spouse who is still married to you, a spouse who is separated from you, or a spouse who is going through a final divorce. These are also frequently applied in home refinancing. For instance, one spouse might have a higher credit score than the other. In this situation, the spouse with bad credit would transfer a claim to the spouse with good credit. An interspousal transfer deed does not require payment of any state or local transfer taxes for property that is transferred. Any mortgage obligations pass along with ownership during an interspousal transfer. The division of property ownership in a divorce can vary from case to case. Refinancing and buying out the ex-spouse are frequent options for the person keeping the house. Simple quitclaim deeds or interspousal transfer deeds cannot handle this type of transfer.Grant vs. Quitclaim Deed
A quitclaim deed alone is frequently insufficient to transfer ownership. This is because it makes no promises. In many cases, a grant deed serves as a more formal and explicit declaration of ownership. A grant deed, as opposed to a quitclaim deed, expressly states that the current owner has ownership of the property and transfers those rights. This protects against any possible title problems that might have arisen during the grantor's ownership period. However, it does not ensure that no title problems existed before that ownership period. Some states combine title insurance with an even stronger deed known as a warranty deed to accomplish this. The two most popular kinds of deeds used in sales transactions are grant and warranty deeds.Major Points
- You can give up any potential claims you might have to a piece of property with a quitclaim deed.
- It makes no representations regarding the guarantor's actual ownership of the property or the absence of any encumbrances on the title.
- Quitclaim deeds are helpful in title-clearing actions, easy transfers within the family, or in a divorce.
- They are not helpful when selling something or in other situations where the guarantor needs to make a more robust ownership guarantee.
