A quitclaim deed can be employed to either release a claim of ownership or transfer ownership of land. It is most commonly used to release a claim of ownership in order to solve a dispute, like in a divorce case. When used to transfer ownership as part of a sale of their property, a quitclaim deed gives the buyer the least assurance under the law that he is getting good title to your property.
Function
A quitclaim deed is identifiable by the inclusion of the key term”quitclaims and releases” from the deed. The individual signing the deed–the grantor–is releasing whatever interest he has in the property to the grantee–the individual getting the quitclaim. The grantee is not necessarily getting any rights from the property, only a release from any claim from the grantor to your property.
No Warranties
Even though a quitclaim deed can be used to transfer ownership of land, it is the least effective means to do so. In a typical arms-length sale of land, a guarantee or grant deed is used to convey title to the property from the seller to the buyer. The purpose behind using these kinds of deeds is to provide the buyer with two major warranties from the seller: that the property hasn’t sold to another buyer, and that title to the land is free and clear of any liens or mortgages. These warranties obligate the seller to pay damages to the buyer if title to the property is not clear after the sale. A quitclaim deed doesn’t contain any warranties, and there’s no responsibility on the part of the seller to provide name.
Average Use
Because the principal function of a quitclaim deed would be to release a claim to land, a quitclaim deed is excellent for use when resolving a real estate dispute. For this reason, quitclaim deeds are typically used in disputes involving a”clouded” title. After the parties achieve a settlement of their dispute, the name can be eliminated using a quitclaim deed. This most often happens in intra-family disputes, especially in divorce cases.
Quitclaim Requirements
The complete requirements for a legal quitclaim deed will vary from state to statenonetheless, there are a number of basic requirements for all quitclaims. The deed must identify the grantor–the individual transferring the property possession –and the grantee–the individual getting the property ownership. A complete legal description for the property must be included, along with the property address. The deed should identify the county where the land is located and identify any consideration–that is, the cost or a statement that the land is a present. The deed must be signed by the grantor at the presence of a notary.
Misconceptions
A common misconception is that a grantor can quickly reverse a quitclaim deed once it’s been signed and delivered to the grantee. In fact, unless the grantee willingly agrees to quitclaim the land back into the grantor, reversing the impact of the deed will be difficult. As soon as you deliver a quitclaim deed, you have relinquished your rights to the property, and minus the grantee’s alliance in returning to you, the only way to reverse the deed is by a lawsuit. You will need to prove to a court which you signed and delivered the deed as the result of fraud, duress or undue influence upon the part of the grantee.