Many adults have heard the terminology “quitclaim deed” thrown around. Few know what the process entails.
Even fewer people understand the consequences of filing a quitclaim deed. It may result in a partition lawsuit emerging among family members. It’s critical that you know why this happens and how to avoid it.
What is a quitclaim deed?
This terminology refers to a legal document that changes ownership and results in the swift transfer to two parties, the grantee and grantor, instead. This deeding process often moves at a faster rate than other deed processes. This process can move faster because there are fewer warranty and contingency issues that interested parties must work through when transferring real estate.
What are partition lawsuits?
Any instance in which the joint owners of a property cannot agree on a property’s sale may result in the filing of a partition lawsuit forcing its sale. The court may order the sale of a property and take any proceeds from it and divide them among owners in response to filing a partition lawsuit.
Do quitclaim deeds minimize the chances of partition lawsuits?
Judges often only force property owners to sell a property as a last resort. They generally prefer a property’s co-owners to try and sort their differences enough to move forward with its sale before filing a partition action.
There are little to no promises that real estate is free from encumbrances, warranties or contingencies when a seller transfers it via the quitclaim deed process. Partition lawsuits often emerge because interested parties can’t agree on what should happen with a property.
The court steps in and forces its sale and the division of proceeds if that occurs, thus minimizing owners’ legal recourses. But if the parties are able to come to an agreement as to sale or conveyance of the property, the parties may utilize a quitclaim deed to effectuate the conveyance. In this respect, quitclaim deeds may minimize the rate of partition lawsuits. An attorney can go into further details about why that’s the case.