Quit claim deed why use

For example, sometimes there is an issue with someone else potentially having ownership rights to a property. In those cases, that person could sign a quitclaim to be certain the new owner of the property has the complete title. However, quitclaim deeds should not be used as a method of selling real estate.

This is because the new owner of the property does not get a guarantee about the title or how valid that title is with a quitclaim deed. A quitclaim deed is most useful in a situation where you want to make a straightforward ownership transfer. Divorce is one of the main reasons to file a quitclaim deed, and this situation offers a good example of how these types of deeds work. If a divorcing couple jointly owns a home, the spouse who will not keep the home can sign a quitclaim deed, which then transfers their interest in the property to the spouse that has been awarded the home in the divorce proceedings.

Another common example is when one person passes their house to another relative. Parents can grant their house to their child without any expectation of receiving payment just by signing a quitclaim deed. Finally, you may have a case when there are issues with the title of a property that raises questions about whether another party may have ownership. A lawyer may seek to have the individual sign a quitclaim so that they relinquish any possible rights, thereby avoiding potential problems and disputes later on.

If you are looking to transfer a title by quitclaim, you will need a quitclaim deed form to exist in writing for the transfer to be considered valid. Keep in mind that a quitclaim can be a dangerous way to transfer property if you don't know anything about the party transferring their property to you.

You need to make sure that someone really has the rights to their property before signing it to you using a quitclaim deed. As with any type of deed transfer, the only impact is on ownership. Deed transfers cannot change any mortgage that exists on the property.

While a quitclaim deed removes an individual's name from the property title and removes that individual's right to property, it doesn't eliminate mortgage responsibilities. A quitclaim deed removes a name but does not absolve that person from needing to pay off any debts they incur as the property's owner. The mortgage is a separate document from the quitclaim deed. This can come into play during a divorce. For example, if one spouse quitclaims their property to the other spouse, this doesn't remove either spouse's name from the mortgage — nor does it remove the responsibility to pay that mortgage.

You should work with an experienced lawyer if you are using a quitclaim deed to transfer or receive property in this way. John Daniel "J. He was born in Fairhope, Alabama and after earning his undergraduate degree at Auburn University, he received a law degree from Thomas Goode Jones School of Law in After law school, he formed the Law Office of J.

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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Personal Finance Home Ownership. What Is a Quitclaim Deed? Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.

We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Alternative Investments Real Estate Investing. Key Takeaways A property deed is a written and signed legal instrument that is used to transfer ownership of real property from a previous owner the grantor to a new owner the grantee.

Related Articles. Partner Links. Related Terms What Is a Deed? A deed is a signed legal document that transfers the title of an asset to a new holder, granting them the privilege of ownership. Grant Deed A grant deed is a legal document used to transfer ownership of real property. What Is a Warranty Deed? A warranty deed is a transfer of title where the seller pledges to the buyer that the property is owned free and clear of all liens. Grantee A grantee is the recipient of a grant, scholarship, or some type of property.

Also keep in mind that there are many scenarios where this can happen, including when transfers of real estate are taking place within a family — and especially an extended family. It accomplishes the change of ownership, but you are not providing any warranty that applies to the transaction. Both types of legal documents transfer ownership of property. Warranty deeds and quitclaim deeds are binding documents that are filed with the local clerk of courts.

However, the level of legal protection is much different. A quitclaim deed suffices for transferring ownership to people you know and trust. But a warranty deed is the right document for most property transfers. How We Make Money. Holly D. Written by. Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics.

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