A Recordable Document by Which a Legal Entity Renounces any Ownership They May Have in a Property
A quitclaim deed describes a recordable instrument by which a legal entity ("grantor") renounces any ownership the grantor
may possibly have in a portion of real estate (real property) and delivers any such claim to someone else (a
grantee). Use of a quitclaim deed does not warrant or make any statements that the grantor's has a valid claim. This is in contrast, to deeds most often used for a sale of real estate (called a grant deed or warranty deed, depending on the region) contain a guarantee from the person making the deed (grantor) to the Person receiving the deed (grantee) that there is clear title. The exact character of the warranties differs from region to region. Quitclaim deeds are often used for title transfers among family members, inserting personal property within a business arrangement, gifts, or the elimination of clouds on the title, or some other unusual or unique circumstances.
A divorce situation, The most often use of the quit claim deed where a party is granting full rights to the other, and removing any ownership in, a
real property to which at one time both parties shared an ownership. If a married couple own a property and subsequently divorce, and his wife ends up with the property in the divorce, the husband would deliver the quit claim deed which would eliminate any interest in the real estate. The name of the husband would stay on the mortgage and he is still financially accountable or answerable if the wife does not make payments on the loan, although, he would have zero interest in the home if his ex-wife sold the home, the husband would not have any claim to monies obtained from the sale. A different circumstance is where a quitclaim might be employed is where a spouse disclaim is having any interest in real estate that their spouse might own.
Quitclaim deeds also are most often created with Tax deed sales when real estate is sold at auction to pay off outstanding tax debt.
Apr 11, 2011
Legal Real Estate Books