Quitclaim Deed

Transfer ownership of real property from one party to another using a Quitclaim Deed.

WHAT IS A QUITCLAIM DEED?

Legal tool used to quickly and easily transfer real property interest to another person.

A Quitclaim Deed is a tool you can use to legally transfer your entitlement in any real property to a new person. It’s often used to transfer ownership of a land or house, usually used from one family member to another. You may decide to use a Quitclaim Deed when you want to gift property to someone who already has an interest in it (for example a parent may gift a house to a child).

A Quitclaim Deed is almost always used when property ownership transfers do not involve a transfer of money. The Grantor (the person giving up interest) simply gives up his or her interest in the property to the Grantee (the new title holder). This is done without any promise or warranty in regards to the quality of the title.

Create your Quitclaim Deed to easily and effectively transfer property titles to a new name, clear up title defects, or gift property to your family.

WHEN TO USE

When to Use a Quitclaim Deed?

Quitclaim Deeds may be a good option in a number of instances. If the Grantor and Grantee know each other well, and neither are looking for a lot of protection, a Quitclaim Deed may just be the simple solution you’ve been looking for. Quitclaim Deeds can be great if you are:

• Transferring property into a Trust
• Gifting property to family
• Handing interest over to an ex-spouse
• Needing to change your name on an existing deed
• Transferring property to a business

What You Need to Know about Quitclaim Deeds.

Quitclaim Deeds are commonly used for transferring property to another family member. They really should only be used for low risk transactions, where Grantor and Grantee know each other, and money isn't exchanged.

The title must be good when the deed is delivered for a Quitclaim Deed to be effective.

Typically, there’s no promise or warranty in regards to the quality of the title in a Quitclaim Deed transaction. This is why it’s so important to only use it in cases where both parties trust one another.

If a real estate title has been recorded with any defects, for example a signature is missing or the wording does not comply with local state standards, a Quitclaim Deed can be used to correct the error.

Generally, Quitclaim Deeds are not used on real estate properties that have an outstanding mortgage. It’s not impossible, but it’s important to know that the Grantor continues to be liable for any mortgage, even if ownership is transferred via a Quitclaim Deed.

When a Quitclaim Deed Works

While they’re not the perfect solution in every case, there are several times when a Quitclaim Deed might be a great way for you to seamlessly and cost effectively transfer asset ownership on a property. Consider using a Quitclaim Deed if you need to transfer property to:

• Spouse/Ex-Spouse
  There are times when you may want to give up your own interest in property so that either a current or ex-spouse’s name is on the title without yours.
• Family Member
  It's not uncommon to want to give your property to a family member (think: child or parent).
• A Trust
  The most important part of creating a Trust is funding it. Putting property inside the Trust can offer numerous forms of protection, but the Trust must legally own it for any benefits to be realized.
• Make a Name Change
  If a name is incorrectly spelled, or if your name changes, you can use a Quitclaim Deed to correctly update the spelling.
• Make Property Business-Owned
  There are a number of reasons it might make sense to make a property owned by a business. Since the business isn’t technically buying the property, a Quitclaim Deed is an easy way to do this.
• Resolve a Cloud on the Title
  If a property has a cloud on the title, the title company may ask you to remove it. This can be done by a Quitclaim Deed, and is very common when selling a property that has a lien on it or that’s under foreclosure - both of which can make it very difficult to sell to wary buyers.

When a Quitclaim Deed Works

While they’re not the perfect solution in every case, there are several times when a Quitclaim Deed might be a great way for you to seamlessly and cost effectively transfer asset ownership on a property. Consider using a Quitclaim Deed if you need to transfer property to:

• Spouse/Ex-Spouse
  There are times when you may want to give up your own interest in property so that either a current or ex-spouse’s name is on the title without yours.
• Family Member
  It's not uncommon to want to give your property to a family member (think: child or parent).
• A Trust
  The most important part of creating a Trust is funding it. Putting property inside the Trust can offer numerous forms of protection, but the Trust must legally own it for any benefits to be realized.
• Make a Name Change
  If a name is incorrectly spelled, or if your name changes, you can use a Quitclaim Deed to correctly update the spelling.
• Make Property Business-Owned
  There are a number of reasons it might make sense to make a property owned by a business. Since the business isn’t technically buying the property, a Quitclaim Deed is an easy way to do this.
• Resolve a Cloud on the Title
  If a property has a cloud on the title, the title company may ask you to remove it. This can be done by a Quitclaim Deed, and is very common when selling a property that has a lien on it or that’s under foreclosure - both of which can make it very difficult to sell to wary buyers.