![]() This lets them avoid probate, a legal process for transferring property after death. ![]() A living trust allows someone to transfer assets to another person before they die. Placing a property in trust: A quitclaim can be used to transfer ownership of a piece of property into a living trust.A quitclaim deed can fix any typos or spelling errors in a name or a problem with the legal description of the property. Correcting minor errors: Mistakes happen, but if they occur on a property deed, you can’t just hit delete.One spouse gives up rights to the property, and the other becomes the sole property owner. For example, when a couple is dividing assets during a divorce, they can use a quitclaim deed to indicate who gets the house. Removing a spouse from the title of a property: A quitclaim deed can also terminate ownership rights.The two of you become joint owners, and the quitclaim deed replaces your original deed. Adding a spouse to the title of a property (interspousal transfer): If you get married (congratulations!), a quitclaim deed lets you add your one-and-only to the property deed of your home.A quitclaim deed officially transfers ownership rights without expensive and time-consuming litigation. Maybe you’ve landed a fabulous job abroad and you want to give your condo to a sibling. Transferring property between family members: Maybe your parents are downsizing and they want you to own your childhood home.Here are some scenarios where a quitclaim deed might come into play: There’s a lower risk if you know both the grantor and the property pretty well.Įmail Facebook LinkedIn Reddit Twitter When Is a Quitclaim Deed Used? Quitclaims aren’t a good approach for a traditional real estate sale where a buyer is dropping a large amount of money on an unfamiliar home. But, when it comes to property from your parents, siblings or other members of your family, it’s pretty straightforward. Since there are no warranties regarding ownership, you should only enter a quitclaim deed with someone you know. Quitclaim deeds don’t include a title search or title insurance that confirms the grantor has rights to the property in the first place. ![]() Essentially, they “quit” their claim on the property.īut, spoiler alert, the quitclaim deed may not grant you ownership. Grantors typically use a quitclaim deed to give up all or some of their ownership rights to a home or piece of land. The party that’s transferring their ownership interest is the “grantor.” The party that’s receiving the ownership interest is the “grantee.” The parties can be people, corporations or entities. How Quitclaim Deeds WorkĪ quitclaim deed involves two parties. So, it’s normally used between people who know and trust each other. While a quitclaim streamlines the property transfer process, it also comes with risks. It’s kind of like wrapping a house with a beautiful red bow and handing it to someone you know. Unlike a conventional sale and purchase, there’s usually no title search, payment or mortgage involved. What Is a Quitclaim Deed?Ī quitclaim deed is a legal document used to make a straightforward transfer of a property between two parties. They’re usually used by people who know each other well, like parents, siblings or other relatives.Ĭurious if this type of deed is right for your situation? Here’s what you need to know before signing one. Quitclaim deeds are used to quickly transfer ownership of real property from one person to another, typically in situations of nontraditional sales. Inheritance, a special trade between two parties, is a type of property transfer that doesn’t follow the usual routine.Įnter: the quitclaim deed. When it comes to owning property, we pretty much know the drill: find the property, get it financed with a loan, sign a general or special warranty deed and then it’s yours.īut not all property transfers happen this way.
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