A quitclaim deed form is a legal document in which the grantor relinquishes ownership of a property in writing to the grantee. You should consult a diligent estate planning attorney before signing the form to confirm it contains all relevant information and is formatted correctly in your area.
Once finished, you must file it with the county clerk’s or recorder’s office. In addition to working with a legal professional, it is also a good idea to check with your local county office to ensure you followed their rules and regulations. Learn more about quitclaim deeds by calling Amity Law Group, LLP today.
Quitclaim deeds typically encompass several primary components, including the following:
In addition to transferring property amongst family members, a quitclaim deed can be used to remove a name from a property title and clear a title problem.
Quitclaim deeds are one of the most popular methods of transferring property to family members because there is typically no money involved, and both parties trust each other.
For example, a quitclaim deed might be employed when transferring real estate property to a family trust. In addition, these documents may be utilized when an owner marries and wishes to add their spouse’s name to the title or deed.
In the event of a divorce, grantors can remove their ex-spouses from the property deed or title. However, a title insurance company may want to ensure that the future owner does not try to claim the property.
Even if an individual files a quitclaim deed, the mortgage will still have their and their ex-spouse’s name on it. To remove an ex-spouse from the mortgage, a person will have to renegotiate it.
If the title to a property is ambiguous, an unpublished lien, claim, or document may invalidate it. In this situation, an individual can file a quitclaim deed to effectively clear the title by relinquishing their interest in the property.
A cloud on a title can be a repossessed property where the owner who defaulted on their mortgage may still have rights to their home or probate issues. Documentation, in this case, may become lost over time, raising questions about who legally owns the land. By having the prior owner sign a quitclaim document, the new owner can be assured that they have complete title.
While a quitclaim deed is a convenient way to transfer property, it is not always the best solution. As previously stated, this sort of transaction does not ensure that the property is free of liens or interests. There could be legal and financial ramifications if someone discovers other people or entities have a claim to the property. It does not mean the individual filing the quitclaim has a legal claim to the property; instead, they either are or are not transferring ownership.
Even if someone gifts another person their property, changing the title to a new owner in certain states could result in tax responsibilities. An individual should speak with a legal professional to determine if a quitclaim deed is the best option and whether they can incorporate wording in the deed that exempts the grantee from paying a transfer tax.
A quitclaim deed is the most effective way to transfer property, remove a grantor’s name from the title, or clear a title cloud. After carefully weighing your options and deciding to proceed, completing and filing your deed correctly is essential.
In addition, be hypervigilant if you are transferring or receiving property from someone you do not completely trust, as it could save you time and money in the long run. Schedule an initial consultation with Amity Law Group, LLP today to discuss quitclaim deeds and how they could accomplish your estate goals.