Quitclaim deed: Your guide

Quick insights

• A quitclaim deed transfers whatever ownership interest the grantor has in a property to the grantee without guaranteeing clear title.
• Quitclaim deeds are often used for family transfers, resolving title issues and simplifying estate planning.
• Quitclaim deeds transfer ownership without guarantees, offering minimal protection, while warranty deeds assure valid title and protect the buyer from future claims.

Imagine you and your sibling inherit a family property after a relative passes away. You want to make it easier for your sibling to take over the property, especially since they plan to move in. In this scenario, a quitclaim deed could be a great solution. This legal document allows you to transfer your share of the property quickly and simply without having to deal with the complexities of a traditional sale. While it does not guarantee a clear title, it can be a practical choice for trusted relationships where speed and simplicity are key. Understanding when and how to use a quitclaim deed can help streamline property transfers.

What is a quitclaim deed?

A quitclaim deed is a legal document that allows you to transfer your ownership of a property to another person. What sets it apart from the traditional deeds is that it comes with no guarantees about the title, making it a quicker but riskier option for transferring property.

This type of deed is typically used between trusted individuals like family members or friends. You may also see it referred to as a “quit claim deed”, “quick claim deed” or “simply quitclaim.” It’s important to learn the nuances of quitclaim deeds to efficiently navigate real estate transactions.

What does a quitclaim deed do?

As mentioned above, a quitclaim deed allows you to give up your interest in a specific property (the grantor) to convey whatever rights you have to the person receiving it (the grantee). Here are a few things to keep in mind:

• No guarantees: The grantor does not guarantee that they own the property outright or that there are no other claims against it. The grantee receives whatever interest the grantor has, if any.
• Quick transfer: It’s often used for quick transfer typically between family members and friends or even in divorce situations.
• No title insurance: Because it does not confirm ownership, buyers usually won’t get title insurance with a quitclaim deed.

When to use a quitclaim deed?

There are several scenarios where a quitclaim deed can be a convenient option:

• Marriage: Allows you to easily add your spouse to your title.
• Divorce: If you get divorced and need the title transferred to you or your ex-spouse.
• Wills: If someone dies and they’ve granted the title to a friend or relative.
• Gifts: If you’ve gifted someone your property and want an easy, less costly title transfer.
• Fixing errors in titles: If there is an error in the title of your house and you need it updated.

Each transfer involves two trusting parties where the risk of a bad title agreement is usually low. These aren’t the only instances where you’ll see the use of a quitclaim, but they are the most common.

How does a quitclaim deed work?

A quitclaim deed form can be obtained from a legal supply store, online or a local government office.The complete, signed and notarized deed should be filed with the county recorder’s office or equivalent local authority. This makes the transfer official and public.

The quitclaim deed form usually requires the following:

• The names of the grantor (the person transferring the property) and the grantee (the person receiving the property).
• A legal description of the property, which can usually be found on the property’s deed or tax records.
• Any payment or value exchanged (even if it’s just a nominal amount like $1).
• Both parties’ signatures and a notarization—the notary verifies identities and witnesses the signatures, adding a notary seal to the document.

A quitclaim deed does not affect any existing mortgage on the property. If the property has a mortgage, the original borrower is still responsible for the loan unless they refinance or formally transfer the mortgage.

Quitclaim deed requirements vary by state and locality. It’s important to check local laws to ensure compliance.

Pros and cons of quitclaim deed

A quitclaim deed has specific advantages and disadvantages that you may want to consider:

Pros of quitclaim deeds

• Simplicity: Easy to prepare and execute. Ideal option for straightforward transfers.
• Speed: Allows for quick transfer of ownership without the need for extensive paperwork.
• Cost-effective: Typically, the fees and costs are on the lower end compared to other deed types since title searches are not required.

Cons of quitclaim deeds

• No warranty: The grantor does not guarantee clear title, meaning the grantee could inherit potential liens or claims.
• Limited protection: If disputes arise regarding ownership, the grantee has limited recourse against the grantor.
• Not suitable for all transfers: This may not be the most optimal option for transactions involving buyers and sellers, as it does not assure clear title.

Quitclaim vs. warranty deed

A quitclaim deed and a warranty deed are both legal documents used to transfer property ownership, but they differ significantly in the level of protection and guarantees they offer to the buyer.

Quitclaim deed:

• Transfer of interest only: Transfer the grantor’s interest in the property, if any, without guaranteeing it’s valid or free of encumbrances.
• No warranty: The grantor makes no promises about the title’s legality or condition.
• Used for quick transfers: Common for transferring property between family members, divorcing spouses or clearing title issues.

Warranty deed:

• Full guarantee: The grantor guarantees that the title is clear, free from liens and that they have legal ownership to transfer.
• Promises on title: The grantor promises to defend against any future claims against the property’s title.
• More protection for the buyer: Offers more security to the buyer since the seller guarantees ownership and clear title.

Facts about quitclaim deeds

Quitclaim deeds have some interesting characteristics worth noting. Here are three additional facts about quitclaim deeds:

• Curing title defects: In some instances, quitclaim deeds may prove to be effective in “curing” title defects by clarifying ownership among parties. This could be a useful tool in family transfers or divorce settlements where clarity of ownership is lacking.
• Minimal legal protections: A quitclaim deed offers the least amount of protection for the grantee compared to other deed types. This means the grantee takes on all risks associated with potential claims against the property.
• Common in estate planning: Quitclaim deeds are generally used in estate planning, allowing individuals to transfer property to heirs or trust beneficiaries without the intricacies of probate.

In summary

Quitclaim deeds can be a powerful yet straightforward option for transferring property, especially in personal and familial situations. While they lack the protective warranties found in other deed types, their efficiency and simplicity make them an appealing choice for many different scenarios.

Whether you’re navigating a family estate planning, understanding the ins and out of quitclaim deeds can empower you to make informed decisions. Consult with a professional to ensure that your property transactions are smooth and secure.

Quitclaim deed FAQs

Below are some common questions about quitclaim deeds to help you better understand their function and implications.

Does a quitclaim deed give you ownership?

Yes, it transfers any interest the grantor has, but it doesn’t guarantee valid ownership.

How long is a quitclaim deed good for?

It’s effective immediately once signed and recorded, with no expiration.

What is a quitclaim deed used for?

It’s used for family property transfers, resolving title issues and estate planning.

How to file a quitclaim deed?

Draft the deed with all necessary details, sign and notarize it, record it at the local county recorder’s office and keep a copy for your records.

How long does a quitclaim deed take?

The process usually takes about a week to complete. The signing and notarization take a short time, and recording at the local office typically takes just minutes to a few hours.