Quitclaim Deed What Is It and When Should It Be Used?
Quitclaim deeds are used to legally transfer real property rights to either another person or to a legal entity, such as a trust or a partnership, for example. This is one of the common means of transferring ownership, and it can be used in a range of situations. It is possible to use a quitclaim deed when you need to change a name on a title, or when you want to add or delete a name from a title.
When Are Quitclaim Deeds Usually Used?
These types of deeds are often used when a couple is getting married or divorced. It will allow them to add or remove the name of their spouse. They are often used when an owner has a name change, as well. For example, if the name were misspelled or the middle initial on the deed is incorrect, it would need to be changed and fixed.
If you are going through a divorce, it is important to realize that if you also have your name on the mortgage, simply getting your name on the deed does not absolve you of your financial duties. You would still be responsible for paying the mortgage, just like your spouse is if both of you are on the mortgage. This means that you have two options available to you.
You could both decide that you want to sell the property. Instead, you might opt to refinance the home and stay in it on your own. In that case, you would get a new mortgage, and you would want to have a quitclaim deed filed to get your ex off of the title.
Let’s look at another example of when you might want to use a quitclaim deed. Perhaps you and your spouse buy a home. You want to make sure that your children are cared for in the event that both of you were to die. It could be a good idea to put the title of your home or condo in the name of a living trust. You could then use the quitclaim deed to remove your names from the deed and to add the name of the living trust.
There are other potential reasons that you might want or need to use a quitclaim deed. Everyone will have their own situation, and you will need to determine what is best for you. It’s often a good idea to consult with an attorney to get a better idea of what will work best for your needs and to make sure that you are doing it correctly.
What Is on the Quitclaim Deed?
Quitclaim deeds will typically have several parts. There are two sections located at the top of the form. One of the sections is for the use of the recorder and the other is for the return address. The middle portion of the form includes the legal description of the property, the name of those who are involved, and the dates. At the bottom of the form will be the location where the notary will acknowledge they witnessed the signing by the parties involved.
After the document has been completed, it will need to be recorded in the county where the property is located. Keep in mind that there could be specific requirements in each of the county recorder’s offices. You will want to be aware of what these are and how they could affect the quitclaim deed.
Why Should You Avoid Free Online Templates
Today, you can find a range of options for free legal templates and documents online for transferring pieces of property and more. However, these can lead to more problems than you might realize. Although you might think you are saving some money with a free template, there is the potential that you will fill them out incorrectly or incompletely. This could create problems with the property later.
Instead of opting for a free quitclaim deed template, work with the professionals. It will reduce the risk of getting it wrong and running into issues later. If there are no major legal issues to work out, you can often work with professional document preparers to help get the paperwork in order, faster.
Are There Any Risks to a Quitclaim Deed?
These types of deeds tend to be a simple and effective means of changing the names on the title of a property when you aren’t selling it. However, it is important to realize that they do not provide any guarantees on the title. There aren’t any assurances that the title is clean. The only thing the quitclaim deeds will do is convey the rights that the conveyor of the deed has at the time of transfer.
There are also no due diligence requirements for these deeds. This is why they are most often used for simple changes like name changes, marriage, divorce, living trust, etc. Still, there are not any assurances that the title is free and clear. Because of this, when transferring property, it is often better to choose a general warranty deed or a special warranty deed. Again, it will all depend on your situation and your needs at the time.
Also keep in mind that if there are tax liens or other liens on the property, they will not be absolved when the title changes.
Consult with the Professionals
When you are considering a quitclaim deed, it is always in your best interest to work with the professionals to ensure you are getting the documentation you need. The certified document preparers at Modern Law can provide you with the help required for your quitclaim deed, so you can rest easy knowing it has been completed correctly. The cost for the service is $250.
The document preparers at Modern Law can also provide you with the help needed for a wide range of other types of deeds and documents. Take the time to get in touch and see what they can do for you.
See also: Special Warranty Deeds