What is quitclaim deed form?
A Quitclaim Deed form, also known as a non-warranty deed, transfers a property holder’s interest to another person without warrantying that the property holder has full rights to the possessions. It means that other claims on the property title could exist. Because of this, people who believe in each other, in particular, family members, frequently use this type of deed (Quitclaim Deed).
On the other hand, a Warranty Deed provides protections for the new possessor. In property sales, people mainly use Warranty Deeds to guarantee that the grantor has complete and clear interest in the property title. A Warranty Deed also makes certain that a property is unburdened of all liens.
Warranty Deeds are far more usual in the sale of real estate because they ensure what Quitclaim Deeds do not. It addresses many of the exact details and takes more time to create. Some of the additional information involves:
- Warranty that the grantor has the authority to sell/trade the property and warranty of the title
- Responsibility and legal insurance if a third-party challenge for the title to the property
- Guarantee that there are no debts regarding the property or other unpredicted burdens
- Complete description of the property, together with its exact legal boundaries
Warranty deeds offer better protection and take longer time to set up. It has its obvious advantages, but that does not make the Quitclaim Deed unattractive either.
Creating a Quitclaim Deed form is a prompt way to transfer property interest to someone else.
Property title meaning
The property title refers to all the rights of property possession, including the owner’s ability to transfer interest in it through a deed or sell the property. There are no guarantees or warranties that a property owner has full rights to the property title. when using a Quitclaim Deed.
What does a Quitclaim Deed do?
A Quitclaim Deed transfers possession of a property without making any guarantee. You may use a quitclaim deed form, if you have sole ownership of a property. You can use above form to:
- Include a spouse’s name to a property title
- Transfer property to a sibling, child or another member of the family
- Transfer property to LLC (Limited Liability Corporation)
- Leave the property to someone in a last will upon death
In case of joint ownership of a property, you may use a Quitclaim Deed form to:
- Transfer your property interest to a sibling, child or another member of the family
- Transfer your property interest to a business associate
- Take a spouse’s name out from a property title after divorce
If many people jointly possess a property, each person has only partial possession rights and cannot transfer the full property title to someone else. Instead of that, they can only transfer their property share to another person. For instance, if four people cooperatively own property, each individual can only transfer their respective half of the property share to another person.
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Rectify a defect on the title
Quitclaim deeds are also an effective means of rectifying a mistake on the title without additional time and costs in legal litigations. Mistakes can be as complex as ambiguity around who the real title holder is or something as simple as a spelling error in the name of the titleholder. The quitclaim deed can settle all of these by using the accurate and intended information for the title that then is notarized by a local county or city official.
Once such inaccuracies or defects are cleared up using the Quitclaim Deed, a Warranty Deed or special Warranty Deed may be used to settle any finer details regarding legally binding clauses in the transfer of property.
Who are the parties in a Quitclaim Deed form?
In Quitclaim Deed the parties are as follows:
- Grantor: the party that gives the interest in a property they hold, to someone else. In other words, a person transferring the property title
- Grantee: the party that receives the interest in a property from the grantor. In other words, a person receiving the property title
In a Quitclaim Deed, it is possible for someone to be both a grantor and a grantee. For instance, if you presently hold the property title to your house and want to transfer some part of the interest to your new husband or wife, you would mention your spouse as a grantee and yourself as both the grantor and a grantee
How to fill out a Quitclaim Deed form?
In general, by completing the steps listed below, you can create and execute a Quitclaim Deed form:
- List the grantee(s) and grantor(s): Grantees and grantors and can be corporations or individuals
- Settle consideration: Consideration is the cost the grantee remunerates the grantor for the property interest. To have a valid agreement, you must list an amount for consideration. You must list a small amount, such as $15, even if the transfer is a gift
- Detail the property: Involve the legal description of the property. Find this description at your local County clerk or registry office or on an old deed. In some instances, you must list a parcel identification number as well, which you can find on former tax statements.
- Execute the quitclaim deed: The grantor should sign the deed before a notary public. In some states witnesses are require to sign the deed. Once the signature is made, file the deed with the local Registry Office or County Clerk. The office will record the Quitclaim Deed form then send it to the grantee
Does a Quitclaim Deed Form remove a person from the mortgage?
Though, you can utilize a Quitclaim Deed Form to remove your ownership rights and name from a property title, it does not completely remove your responsibility for the mortgage.
If your name is still on the mortgage when you transfer your ownership stake to your ex-spouse, the bank may still hold you accountable for missed payments. Throughout divorce proceedings, a court may make a decision that your ex-spouse (who keeps property ownership) is solely accountable for all future mortgage payments. Once your divorce is complete, contact your mortgage provider to remove your obligations of mortgage, as you will not have an interest in the house any longer.
Can Quitclaim Deed can be revoked or canceled?
In general, you cannot cancel a Quitclaim Deed. Once you file and notarize a Quitclaim Deed form, it cannot be revoked unless a court determines that you made it under undue influence from another person, like the grantee.
The court may agree to transfer the property back to you if you have already filed and notarized your deed but want to revoke it, depending on your relationship with the grantee.
Should a Quitclaim Deed be used during a divorce?
If you are divorcing or separating from your spouse with mutually owned property, you can utilize a Quitclaim Deed form to change the mutual ownership into sole ownership. Filling out a Quitclaim Deed form transfers the property title to the spouse that will keep the property.
If you and your spouse agree on who should maintain property ownership, a Quitclaim Deed is often the quickest way to pass on the property title.
The spouse who obtains sole possession of the property can mortgage or sell the property without the consent or approval of their ex-spouse. Sole ownership also permits them to involve the property in their Last Will and Testament.
Is it secure to use a Quitclaim Deed form?
In general, a Quitclaim Deed form is safest for low-risk transactions or property transfers between individuals who know and trust each other. If you are obtaining property interest or property from someone you are not familiar with, you would likely want assurance of their ability to transfer the title to you. You can acquire assurance with a Warranty Deed.
Is it necessary to take Quitclaim Deed form to a notary public?
In order to execute the Quitclaim Deed, the grantor should sign the Quitclaim Deed form in front of a notary public. Some states also require witnesses to sign the deed, in addition to notarization. Once the signature is made, the deed form should be filed with your local registry office or County clerk.
For your information
Related documents to a Quitclaim Deed form are:
- Warranty Deed: a deed that passes on property with the warrantee of a clear and good title
- Survivorship Deed: a deed that makes certain that a surviving spouse receives the remaining interest in a title after the passing of their significant other
- Contract for Deed/Land Contract: a contract that defines a real estate transaction in which the seller gets the property title after the buyer pays the balance fully
- Gift Deed: a deed that passes on a gift to another person
Below you can download free Quitclaim Deed form