When searching a property’s sales history on your local property appraiser’s site it is quite likely that you will find a quitclaim deed reflected for various properties. What exactly is a quitclaim deed? A quitclaim deed is a legal document that transfers the ownership of property from one person to another. Unlike a warranty deed, which makes guarantees about the ownership of the property, a quitclaim deed does not. This means that the person who is receiving the property (the grantee) is taking it “as is,” with no guarantees about its condition or ownership history.
When is a quitclaim deed used?
There are a number of situations in which one of these deeds might be used, including:
- Transferring property between family members: This is a common use for quitclaim deeds, as they can be a quick and easy way to transfer property between family members without having to go through the expense and hassle of a traditional real estate transaction.
- Adding a spouse to the title of a property: If you are married and want to add your spouse to the title of your property, you can use one of these deeds to do so.
- Correcting errors on a title: If there is an error on the title of your property, such as a misspelling of a name, you can use a quitclaim deed to correct it.
- Removing someone from the title of a property: If you want to remove someone from the title of your property, such as a co-owner who is no longer paying their share of the mortgage, you can use one of these deeds to do so.
- Transferring property to a trust: If you want to transfer your property to a trust, you can use a quitclaim deed to do so.
Pros and cons of using a quitclaim deed
There are a number of advantages to using a quitclaim deed, including:
- They are relatively inexpensive.
- They are easy to prepare and file.
- They can be used to transfer property quickly and easily.
However, there are also a number of disadvantages to using a quitclaim deed, including:
- They do not offer any guarantees about the ownership of the property.
- They can be risky if you are not sure of the property’s ownership history.
- They may not be accepted by all lenders.
A quitclaim deed is an important tool for adding someone to a property’s deed or transferring between family members. Of course, before using a quitclaim deed, it is important to consult with a lawyer to make sure that it is the right option for you. For additional information on quitclaim deeds, here are some resources:
- The American Bar Association: https://www.americanbar.org/
- The National Association of Realtors: https://www.nar.realtor/
- The United States Department of Housing and Urban Development: https://www.hud.gov/
Are you thinking about buying or selling real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app and have the power of the South Florida MLS right on your mobile device.