When you buy or sell property, a deed transfer takes place. A deed is a legal document that proves you have ownership in a piece of property.
Sometimes, properties may not have a clear title or line of ownership. If a property has any issues with its title, an owner may choose to provide a quitclaim deed. These deeds are also referred to as quick claim deeds because the transfer of property can happen much faster using this type of deed.
This guide will explain everything you need to know about the quitclaim deed.
What is a Quitclaim Deed?
A quitclaim deed is a legal document used to transfer property ownership from one owner to another. Typically, no money exchanges hands during these real estate transactions.
Quitclaim deeds are most often used when a property owner wants or needs to give a property away. With a quitclaim deed, the grantee, or person taking over the deed, can only claim an ownership interest the grantor, or person giving over the deed, has the rights to at the time of the transfer. In some cases, this type of deed can transfer no ownership or interest.
If a property doesn’t have a clear title, the owner may provide a quitclaim deed. However, keep in mind that a quitclaim deed offers no guarantees or warranties that the title or the property has no liens, restrictions, or encumbrances, and there is no recourse for the grantee if title issues come up later. The property transfer is based on trust between the grantor and grantee.
Quitclaim Deed vs. Warranty Deed
When it comes to real estate property, there are several types of deeds you should be aware of. The quitclaim deed and the warranty deed are some of the most common, but the two have differences. The warranty deed provides grantee protections that quitclaim deeds do not.
With a quitclaim deed, also known as a non-warranty deed, you won’t get title insurance, and no title search is done during the transfer. This means that any title issues or ownership…