There is more to a piece of property than its utility. As families create memories there, they develop a value beyond dollar signs and market estimates. Whether it’s a long-held home, a treasured piece of land or even a vacation condo, how can you ensure a piece of property will go to someone that appreciates it in every way?
The answer, in many instances, is a quitclaim deed.
What is a quit claim deed?
A quitclaim deed is a way for one person to hand ownership in a property over to someone else—sometimes with money exchanging hands and sometimes without. In essence, the person giving up the property (the grantor) is releasing their interest in it, and giving it to someone else (the grantee).
It’s important to note a quitclaim deed doesn’t provide anything else. There are no warranties, no guarantees about other owners’ claims to the property and no protections against debts or liens. A quitclaim deed also has no impact on the mortgage.
When a quitclaim deed might be used
A quitclaim deed can be a useful tool if you want to give property, or interest in a property, to a loved one. For example, they’re often used when:
- Adding a spouse to a home’s property title
- Removing a spouse from a title after a separation
- Gifting property to a family member
- Passing property to a loved one via an estate plan
A quitclaim deed should never be used carelessly. This is a legal mechanism, and can carry with it a number of consequences. It’s important to understand the full scope of a quitclaim deed before committing to anything – particularly because it can be quite hard to overturn one.
However, if you have gone through all the details with an attorney and understand the full ramifications, a quitclaim deed can be an effective, convenient tool.