An extremely quick and convenient way to transfer property ownership, the quitclaim deed is often used but scarcely understood in the real estate world. It might not be the most widely known of transactional tools, but it plays a key role for certain property owners and investors who find themselves in need of specific property transfer services.

Read on to learn more about quitclaim deeds and their various advantages and disadvantages. If you’re a homeowner or property investor, this article will help you to understand why you might need (or might want to avoid) a quitclaim deed.

What Is a Quitclaim Deed?

Well-known as one of the quickest and easiest property ownership transfer methods, a quitclaim deed offers fewer assurances and protections to buyers and sellers than other tools that facilitate the transfer of property rights and changes in property ownership. This makes the quitclaim deed ideal for non-sale situations in which property changes hands between family members and other parties that share a great deal of mutual trust.

For example, a quitclaim deed can streamline legal processes for a homeowner who wants to rapidly transfer a property title to a loved one. They can also prove quite useful when adding a spouse to a property title after marriage, removing a spouse from a property title after divorce, establishing ownership of inherited property, clarifying an easement, and transferring property into or out of a revocable joint living trust.

The average quitclaim deed includes a legally binding description of the property as well as the names of both the grantor (the party transferring property ownership) and the grantee (the party receiving the transfer of property ownership). Because its streamlined structure provides few guarantees, the quitclaim deed requires the grantee to accept the risk that the grantor may not have valid and full ownership interest in the property.

The Difference Between a Quitclaim Deed and a Warranty Deed

Both the quitclaim deed and the warranty deed change how a property’s title is held. However, the warranty deed provides far more protection to buyer and seller alike. For this reason, the warranty deed is preferred in most purchase transactions and, therefore, the most common method of transferring a property title.

A warranty deed stipulates monetary compensation and includes legal clauses that protect new titleholders against liens and other potential issues. By avoiding these assurances, the quitclaim is far more efficient.

When To Use a Quitclaim Deed

A quitclaim deed is useful in property transfers between two trusting parties who have little or no concern about a bad title agreement. While this type of transfer might arise in any number of scenarios, the following are the most common:

  • Marriage (for adding your spouse to your title)
  • Divorce (for removing your ex-spouse from your title)
  • Wills or Gifts (for granting a title to a family member or friend)
  • Updates (for fixing errors and establishing other changes in titles)

In all these cases and more, a quitclaim deed can be a highly convenient property transfer option. For more information, contact the document experts at First Class Signing today.

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