Putting together the right quitclaim deed is important because one that is not done correctly can cause major problems for you. One purpose of a quitclaim deed is to get a recorded document stating that a person no longer has an interest in a particular piece of property. Another purpose would be to add an individual not previously on the title.
When should you use a quitclaim deed?
A quitclaim deed can be used to help show someone’s disinterest in a property. For example, if you own an office building and get married, your spouse could sign a quitclaim deed to say they do not have any interest in that property. This quitclaim becomes public record, as well.
Quitclaim deeds are typically used when family members want to transfer property or when there is a problem with a title that needs to be corrected. Keep in mind that an improper quitclaim could leave you with similar issues. For example, spelling your name wrong on a quitclaim deed could make it invalid.
Quitclaims can also be used to clear clouds on titles, such as resolving a problem with a missing signature or problems with the wording of the title.
When shouldn’t quitclaim deeds be used?
Quitclaim deeds are generally not used when there is an outstanding mortgage on a property, because the deed can’t affect a mortgage in any way. Usually, these deeds don’t involve money transferring hands at all.
Quitclaim deeds might also not be used if there are other possible solutions to a question of ownership, such as obtaining a corrective deed. In some cases, a warranty deed would better serve the parties.
Quitclaim deeds may help transfer property but there are no title searches involved. . Unfortunately, grantors may use quitclaim deeds when they are not t sure of the title’s status, which means that the use of a quitclaim deed could put a buyer or new owner at risk with no recourse if something goes wrong.
Quitclaim deeds are helpful, but only when used correctly. Be sure you understand the legal implications of using a quitclaim or accepting one as a method to clear a cloud on a title or transfer property.