You might know that a deed is used to transfer (convey) ownership of a home from one party to another. What you might not know is that there are a few different kinds of deeds. A warranty deed is what is used when buying and selling a home. However, there is another type, a quit claim deed that is used when no money is involved in the transaction.
What is a Quit Claim Deed?
A quit claim deed is used when property ownership is transferred without being sold. This means that no money is involved in the transaction. It also means there are none of the usual buyer protections, including no title search and no title insurance issued.
What is a Quit Claim Deed Used For?
Most commonly, quit claim deeds are used to transfer property within a family. A quit claim deed could be used to add a spouse’s name to the title of the property, or to remove a name in the case of divorce. Other common uses are when a parent transfers a property to a child or other family members transfer ownership to one another. A quit claim deed can also be used to put a property into a family trust.
How does a Quit Claim Deed Work?
The rules about quit claim deeds vary by jurisdiction, so you’ll want to retain the services of the jurisdiction, a title company, or a legal expert to help you complete the process.
You’ll need to include the legal description of the property being transferred, the date of the transfer, and the names of the “grantor” and “grantee.” You’ll also want to have the deed signed by all parties in front of a notary public, and then copied and recorded at the county clerk’s office.
Keep in mind that quit claim deeds only impact ownership of a property and the name on the deed. It does not affect any indebtedness.
For more questions on this subject or anything relating to Real Estate contact Doug at Doug Moves You