What is a Quit Claim Deed?
Quit Claim Deeds for Real Property
…before diving into a Quit Claim Deed - take a look at this…
In any deed transfer there is a Grantor (the person or entity transferring the interest) and the Grantee (the person or entity that is recipient of the transfer). There are several categories of real property deeds and they offer different levels of protection. Examples are general warranty, special warranty and quit claim deeds.
Deeds are also classified differently – private and official. Private deeds are between private parties and official deeds arise from official orders like court or tax proceedings.
A general warranty deed provides the greatest protection since it provides guarantees for title defects all the way back to the origin of the property. Sometimes, this level of guarantee and warranty protection is not required, so a quit claim deed may be used for those purposes requiring a simpler solution.
What is a quit claim deed?
It is a legal instrument that is used to transfer interest in real property. The Grantor transfers any interest held in the property to the Grantee.
When using a quit claim deed the parties are providing the least amount of protection of any deed available. By executing a quit claim deed the Grantor is releasing all interest, if any, in the real property to the Grantee.
Why would you use a quit claim deed?
If a quit claim deed offers the least amount of protection, why would you use one? One reason would be defects in title like a misspelled name. Another reason would be in divorce proceedings where the parties agree in the court settlement as to which individual will “get the house” and the court agrees. Quit claim deeds are also frequently used between related parties, or people who know and trust each other. An example would be conveying property in or out of a family trust.
Just remember that in a quit claim deed the ownership interest is transferred, along with liens or mortgages, but there are no warranties provided from grantor to grantee.
Caution:
Regular people are attracted to quit claim deeds because they are convenient, simple to draft and easy to understand. This means they are sometimes improperly used, as in a case where extended warranty protection is needed.
Remember that a deed is a legal instrument so a person should be professionally advised by an attorney regarding the type of deed conveyance required for a given purpose, i.e. – general warranty deed / special warranty deed / quit claim deed?
Example of a quit claim deed:
Besides the formatting and recording sections, here is an example of quit claim deed language that my attorney drafted for me in 2006 when I quit claimed a property to my wife at the time - now my ex-wife:
QUIT CLAIM DEED
THE GRANTOR ___________, a married man and husband of grantee, for and in consideration of, and to create separate property, convey(s) and quit claim(s) to ____________, a married woman and wife of grantor the following described real estate, situated in the County of _______, State of ________, including any interest therein which grantor may hereafter acquire:
LEGAL DESCRIPTION:
SEE “EXHIBIT A” ATTACHED HERETO, INCORPORATED HEREIN AND MADE A PART HEREOF.
DATED: _______________, 2006
________________________
SIGNATURE OF GRANTOR
I did not know at the time that I would be getting divorced and take notice that I quit claimed both current and future interest. After execution with a Notary Public the deed was recorded with the county and became part of the public record.
Review:
Folks are attracted to quit claim deeds because they are fast, simple and easy to understand. If you have read any of my other posts you know that I believe that almost nothing in real estate is fast, easy, or simple. But wait, that’s a contradiction!
Not really, since you need to do your homework before executing any conveyance deed and that part is not always fast, easy or simple. If you use the wrong deed instrument or fail to accurately consider future possibilities like divorce, you might regret it later.
Just remember that quit claim deeds are not suitable for situations requiring the transfer of guarantees or warranties on title. A qualified attorney is necessary to advise on what type of legal instrument is required, along with the creation and execution of it.
Making a thoughtful and professionally advised decision is key to get the job done correctly and stay out of trouble, both now and in the future!
