A quit claim deed transfers your property rights to another party
Quitclaim deeds are used to transfer the interest in real property. With this legal document, your interest in the real property such as house, land or mobile phone is transferred to another party. The person who transfers the property is known as the grantor and the person to whom the property is transferred is known as grantee. With quit claim deed, only the interest of the grantor is transferred to the grantee, but the grantor does not make warranty of any kind on the property.
Most of the property deeds other than a quit claim deed, contain title covenant. However, there is as such no title covenant in case of a quit claim deed. That is why, it does not offer any warranty regarding the status of property title. This only implies that transfer of the interests possessed by the grantor to grantee. It may happen that a grantor has transferred a property to a grantee who the grantor does not own. In this case, the grantee actually receives no real interest in the property. Again, since no warranty is involved in quit claim deed, the grantee can not take any legal action against the grantor in order to recoup the losses.
Again, if a grantor is likely to own the property at a later date, the interest on the property does not rest on the grantee, because the grantee is entitled to receive the interest on property as per the date of the agreement. In other words, if one the date of the deed, the property does not belong to the grantee, and then it will not be transferred to the grantee through quit claim deed. Here we discuss about different situations when quit claim deed is used or is not used.
- Due to the absence of warranty, a quit claim deed is not generally used for traditional property sale, where buyer and seller are not known to each other. However, sometimes, in conventional property sales also, quit claim deeds are used. But in such cases, grantor and the grantee must have an existing relationship with each other.
- Quit claim deeds are widely used in case of property transfers between family members. This transfer is made under the veil of placing personal property in business, gifts and some special circumstances.
- Another case, when the quit claim deed is used very widely is divorce. With quit claim deed, you can terminate your interest in jointly held property and transfer it to your spouse.
- In some rare cases, quit claim deeds are used for tax deed sales.
You need to however know the rule prevalent in your state regarding quit claim deed. In majority of the states in the country, it does not require the signatures of both the grantor as well as the grantee in the quit claim deed form. Only the grantor needs to sign the form. Again, in some states, signatures of both grantor and the grantee, are required. However, the deed must bear the signature and the stamp of a notary public.
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