2/26/2023 0 Comments Quit claimThe legal description of the property-which includes the location, boundaries and specific identifiers-must be accurate. In any of the above-listed example, you must still ensure that the Quit Claim Deed is properly drafted. The owner wishes to transfer title to a relative before the owner’s death.The owner is uncertain of his or her legal ownership.An ex-spouse is removed from title as part of a divorce settlement.The owner is adding their spouse’s name to the title.The owner is transferring the property to their living trust or a company.The following scenarios are the most common and preferred instances to consider using a Quit Claim Deed: The inherent riskiness of a Quit Claim Deed is why it is often executed between family members or among related business entities. Hence a Quit Claim Deed is far riskier than a Warranty Deed, which is why it is rarely utilized in traditional, arm’s length real estate transactions. This means there will be no legal recourse if a title issue emerges or an outstanding claim is revealed. If any problems should arise contrary to the promises of the Warranty Deed, you can seek to hold the grantor liable to resolve the issue.īy contrast, a Quit Claim Deed makes no such guarantee that the grantor has full ownership of the subject property or that the property is free and clear of liens, thereby shielding the grantor from any liability. A Warranty Deed also states that the grantor is the rightful owner of the property and has the right to transfer the title. Think of the purchase contract as a promise by the seller to convey the property once you fulfill your obligations, while the deed is the conveyance itselfĪ Warranty Deed is named so because it is a warranty (or guaranty) from the seller that the property is free and clear of any problems with the title, such as unresolved claims or liens that will otherwise attach to the title and become your problem to bear once it passes. Although you might think you own a property once you have paid the sales price, it is only when the deed is properly executed that you can be said to legally own the property. Warranty DeedĪlong with the Quit Claim Deed, the Warranty Deed is one of the two main types of deed, although it is better known since it is used in most real estate transactions. This deed will also need to be recorded in the public records of the county in which the property is situated. Virtually any time that you acquire a property-whether as a buyer, heir, or spouse-you will need a deed signed by the owner that legally transfers the title from the previous owner to you. A Quick Guide to DeedsĪ deed is a legal document that “conveys”, or transfers, real estate from one party (the Grantor) to another (the Grantee). A Quit Claim Deed is one of several legal instruments that can used for this purpose, but it is critical that you understand how it works, when to use it, and how to ensure it is properly drafted and executed. the legal ownership rights-to someone else. There may come a time when you want to transfer the title to your property-i.e.
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