People who own multiple pieces of real estate may, at some point in their lives, give a house to someone else, such as a sibling, give it to a child or grandchild, or sell it. During these cases, the law requires the owner to execute a quitclaim deed to ensure that he will no longer claim an interest in the property.
A quitclaim deed is a legal document authorizing title to property. It is used in the transfer of an interest in property to another person. By name alone, it means that the owner waives any claim to a home or land. The person who waives the claim is known as the grantor, while the one who accepts ownership is called the grantee. Dealer assumes all risk, especially if no warranties or warranties are made on title.
The deed, however, only transfers interest and does not guarantee whether the grantor actually has ownership rights to the property in question. It also does not ensure that the property is free of debt.
To be enforceable, the deed must be signed by the grantor, after which it must be signed and sealed by a notary public. However, in some states, the dealer and other witnesses must also affix their signature. In addition to a notary public, officials in states other than where the property is located may also certify the deed.
There are different situations in which a quitclaim deed can be of great help. For married couples, a spouse who was able to purchase property before the marriage may add or remove their husband’s or wife’s name from the property title. In a divorce situation, a couple can transfer ownership of their marital property to one of the spouses.
During a home sale, a quitclaim deed executed at closing transfers the seller’s interest in the property to the buyer. In other words, the seller gets rid of the ownership rights entirely and guarantees that he will not come back to haunt you no matter what.
Another situation in which the deed may be used is if a certain owner is planning an estate or living trust. In this case, the deed transfers ownership of your home to a trust.
If it is a life estate, the grantor may still retain their right to own the property even after signing a quitclaim deed. Generally, a life estate gives the owner the absolute right to stay in the property until the owner’s death. Only after the death of the owner can the grantee obtain the right to own the property.
It is important to understand that once the deed is signed, it will be difficult to reverse or undo the deed. Only if the grantee agrees to relinquish claim to the property can the previous owner repossess the property. Otherwise, the grantor must prove the nullity of the transfer.
A quitclaim deed is a valid option to relinquish interest in the property. But since this document does not guarantee the transfer of title or property rights, it is better to accompany it with a guarantee deed.