Definition§
A quitclaim deed is a type of document used in real estate to transfer the interest or rights that a grantor may have in a property to the grantee. Unlike other deeds, a quitclaim deed provides no warranties or guarantees about the property’s title, meaning the grantee receives only the interest the grantor has at the time of the transfer. It is often utilized to clear up title issues or facilitate property transfers that do not require title insurance.
Examples§
- Family Transfer: John wants to transfer his property to his son, Mike, without any title guarantees. He uses a quitclaim deed to do so.
- Title Clearing: During a title search, it is found that the property had once been held by a partnership that subsequently dissolved. The current owner obtains quitclaim deeds from all former partners to ensure marketable title.
- Divorce Settlement: In a divorce, a quitclaim deed could be used to transfer property ownership from one spouse to another as part of the settlement.
Frequently Asked Questions (FAQs)§
What is the primary use of a quitclaim deed?§
A quitclaim deed is primarily used to transfer property between parties that know each other, such as family members, or to clarify or correct title issues without providing title warranties.
What are the risks associated with a quitclaim deed?§
The main risk of using a quitclaim deed is that it provides no assurance or warranty regarding the state of the title. The grantee could end up with no actual interest in the property if the grantor’s interest is defective.
Can a quitclaim deed be used to sell a property?§
Yes, but it is less common for selling property to unrelated third parties due to the lack of warranties and guarantees about the title. Buyers typically prefer a warranty deed for the additional protection it offers.
How does a quitclaim deed differ from a warranty deed?§
A quitclaim deed transfers the grantor’s interest without warranties, while a warranty deed guarantees that the grantor has a clear title and the right to transfer it. Warranty deeds also provide covenants to protect the grantee against future claims.
Related Terms§
- General Warranty Deed: A document that transfers real estate with a full guarantee of good title to the buyer.
- Special Warranty Deed: Similar to a general warranty deed but the guarantee is limited to the period during which the grantor owned the property.
- Cloud on Title: Any claim or encumbrance that may impair the title to real property or make it doubtful.
- Title Search: An examination of public records to determine the legal ownership and encumbrances on a piece of real property.
- Marketable Title: A title that is free from significant defects or litigation risks, making it easily transferable.
Online Resources§
References§
- Barlow, P. (2021). The Essentials of Real Estate Law. West Academic Publishing.
- Hovey, C. (2015). Real Estate Deeds: An Overview of Titles, Transfers and Recordations. Legal Reader Publications.
Suggested Books for Further Studies§
- Johnson, R. (2018). Real Estate Law and Practice in the United States. Lexington Books.
- Miller, R. & Hollowell, N. (2020). Modern Real Estate Practice. Dearborn Real Estate Education.
- Hinkel, D. (2016). Practical Real Estate Practice. Pearson.
