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Quitclaim Deed: A Document that transfers property-interest

Posted on: 05th Jun, 2005 10:42 pm
A quitclaim deed is a legal document that transfers your interest to another individual in the property such as
  • House - A building for human habitation
  • Land - A place which can be used for habitation, investment or any other purpose
  • Mobile home - A movable house that is parked in a place
Two parties are there in a quitclaim deed process – grantor and grantee. Grantor is the party that transfers the property and the grantee is the party that gets the property. In a quitclaim deed, no promises are made by the grantor that the property is lien-free. Before opting for this deed, it is advised that the grantor should consult an attorney and know about the possible consequences of such property transfer.

To help you get a clear idea of what a quitclaim deed (often misspelled as quick claim deeds or quit claim deeds) is, the whole information is divided into different sections:

When to use quitclaim deed

A quitclaim deed is commonly used in the following situations:

  1. In a divorce, when an ex-spouse transfers ownership of the property to the other.
  2. A spouse may add other spouse's name to the property title after marriage only by issuing the spouse a deed.
  3. At the time of purchasing a property, ownership is transferred from the seller to the buyer. For such transfer, parties involved may use a quitclaim, general warranty, or special warranty deed.
  4. Sometimes, previous owner of the property may retain some ownership interest in the property. This interest can be transferred to the new owner with the help of a quitclaim deed.
  5. A person planning a will or a living trust can use the document to transfer ownership of the property into a trust or the person they want to inherit the property.
  6. Parents willing to transfer the ownership in a property to a child or a relative before the property gets stuck in a probate.

6 Steps to follow in a quit claim deed

Preparing a quitclaim deed is very easy. Here are some quick steps to do so.

  1. First of all, obtain a quit claim deed form. You can get the form online. You can also obtain it from the office of the local county recorder.
  2. Fill in the names of the grantor and the grantee. If possible address of both the parties has to be filled in.
  3. Signature of the grantor should be there in the form. In some states, signatures of both the grantor and the grantee are required.
  4. A public notary should verify the signature of the grantor. Generally, the grantor has to sign the deed in front of a public notary.
  5. A legal description of the property is a must. This is because of the fact that without the legal description, deed can’t be recorded in the recorder’s office.
  6. In order to make the deed valid, it should be recorded in the recorder’s office.

Life estates and quitclaim deeds

Even after transferring a property through quitclaim, you can have the right to stay there till your death. This is possible only if you retain a life estate for yourself. A life estate is a kind of estate where you retain interest in the property for your lifetime, and specifically name the person to whom the property is to go to immediately after your death.

Reverse/undo quitclaim

Once you have signed a quitclaim, the only way to get the property back is to have the grantee quitclaim it back to you or prove the transfer was invalid. If you can prove that you signed the deed under threat, external pressure, or the grantee made you sign by telling you false information, then you can have the quitclaim deed invalidated. For invalidating a deed, consult an attorney in your state. Learn more...

This legal document is a good way to transfer property if you are transferring it between family. The best way to transfer property to or from someone who is not family is to use a general or special warranty deed which gives the buyer warranties as well as transfers property.

Related Readings

Related Forum Discussions

My husband and i got divorced but did not settle the house. Right now I have to file for my homestead and because I'm divorced, can't do it. How long does the quit claim take.?
Posted on: 02nd Jan, 2007 09:09 am
Hi Norma,

Welcome to Mortgagefit forum.

It does not much time as it does not involve going to court for finalization of the property transfer.

All you have to do make out the deed, notarize it and get it recorded with the local county recorder's office.

Colin
Posted on: 02nd Jan, 2007 10:52 am
yeah, doesn't take much time to get recorded, depends on the county recorder's office actually.
Posted on: 02nd Jan, 2007 10:40 pm
Is it possible in the state of Georgia for a contractor to quick claim deed a home for use as collateral until payment is paid in full, and although the work hasn't been completed change the locks thus enabling entry into the home by the grantor?
Posted on: 03rd Jan, 2007 08:18 am
Hi Tasha,

If the contractor quit claims then the home ownership will get transferred in the name of the other person.

After which the person getting the ownership can use it as collateral if required.

Henstridge
Posted on: 03rd Jan, 2007 10:34 am
My mother and a father own a home with re-financed loan). My dad past away last year. My mom wants to remove my fathers name from deed and add mine ( daughter), is quick claim the best way to go...also I'm confused about the ownership portion of the form ie. joint tenancy, survivorship etc... thanks
Posted on: 03rd Jan, 2007 05:44 pm
Yes Cynthia, quit claim deed can be used here. If your mom gives away your father's share of interest to you, then it will be tenancy in common.

If both your mom and dad had undivided interest in property, that is joint tenancy, then after your father's death property will pass on automatically to your mother. This is the right of survivorship. And, after this, your mother may wish to add your name on it through quit claim.

To get a better idea about the forms of ownership, you may go through our previous discussion on Joint-tenancy vs Tenancy-in-Common.

Thanks,

Caron.
Posted on: 03rd Jan, 2007 10:31 pm
We, my husband and I bought a home with a partner 4 yrs ago. (maybe as a spec house, but decided not to sell that way) We, husband and I have decided to keep and make our permanent residence. would a quit deed be a way to take him off title and would it affect the property tax base.
Posted on: 04th Jan, 2007 08:11 pm
Yes Tami, a quit claim deed can be used to take him off the title.

What you can do is talk to him and if he is willing to take off his name, request him to quit claim his share of interest in property to you and your husband. Verify if he has got the deed drafted by an attorney.

Regarding the property tax base, you and your husband will continue to pay your portion of taxes and the taxes for the part of property initially owned by the partner, will be paid by you or your husband.

Thanks,
James.
Posted on: 04th Jan, 2007 08:38 pm
Clarifing question about tax base...in Calif when you sell property, new property taxes are based on the selling price. Since we wouldn't be buying or sellings the property since we already own it. just ammending the way the title is held...using a quit claim deed. would that affect the annual property tax base. There are $$ involved, with initial investment repayments, which may look like buying the property from partner but it is just paying him back what he invested as well as an investment appreciation.
Posted on: 04th Jan, 2007 08:59 pm
Hello:

My father is a disabled veteran who owns a home in CT. The house is paid for and I am his caretaker. Our concern is that this will increase the tax bill on my father's account if my name is on the deed since I am 46 and working.

My Dad is concerned about his not having power and authority over his property that he and my late mom purchased back in 1972.

And my concern is God forbid he passes, by not having done the quit claim process the property would be taken by the state, etc.

Please help!!!!

Thank you very much,
Vernice
Posted on: 05th Jan, 2007 11:03 am
Hi Vernice,

Welcome to Mortgagefit forum.

Sorry to hear about your father's condition.

In the situation you have described, creating a revocable living trust will be the correct option. The title of the house will be transferred into the trust. Your father will be named the manager of the trust or who is called the trustee and also the beneficiary. This transfer will not involve any income tax charges. Creation of the revocable living trust is not regarded as a gift; hence there are no gift taxes to be paid.

Your father is concerned that he will lose his rights over the home, but with such a trust, as a trustee he will have complete control over the trust with the right to sell the home or give it to someone else. As the trust will be a revocable living trust, your father will be able to change the trust or close the trust any time he wishes. The trust will also mention how the property will get distributed after his demise.

Hope it will be the right solution for your concern.

Colin
Posted on: 05th Jan, 2007 12:02 pm
No Tami, that won't affect the property tax base anyway.

I don't think investment repayments will be considered as buying property from the partner. You should have relevant documents with you regarding the investment payments you made to him.

Thanks,

Caron.
Posted on: 05th Jan, 2007 11:27 pm
Yeah Vernice, going for the trust will be a good option. What your father can do is to quit claim his interest in property from him as an individual to himself as the trustee of the revocable trust.

For related information, you can go through our previous discussions on Revocable Trust .

Thanks
Posted on: 06th Jan, 2007 12:02 am
i am loking to helpp my friend out who is going into foreclosure by using a quit claim deed. my question is this: once we do this what rights do i have that he does not take out a second mortgage or has a lien put on the house after the fact. also can he sell it since he is still on the title.
Posted on: 07th Jan, 2007 04:25 am
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