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
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:
- 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
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:
- In a divorce, when an ex-spouse transfers ownership of the property to the other.
- A spouse may add other spouse's name to the property title after marriage only by issuing the spouse a deed.
- 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.
- 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.
- 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.
- 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.
- 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.
- Fill in the names of the grantor and the grantee. If possible address of both the parties has to be filled in.
- Signature of the grantor should be there in the form. In some states, signatures of both the grantor and the grantee are required.
- A public notary should verify the signature of the grantor. Generally, the grantor has to sign the deed in front of a public notary.
- 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.
- 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.
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
- Which is better - Interspousal Transfer or Quitclaim Deed?
- Can quitclaim deed transfer mortgage debt?
Related Forum Discussions
- Will grantor lose rights on property after quitclaim?
- Can quitclaim remove name from title?
- Will quitclaim protect my home from creditors?
- Tax implication of quitclaim Deed
- Owner deceased: Is quitclaim deed possible?
- Which is better - quitclaim or warranty deed?
- Quitclaim prior to bankruptcy - how does it affect?
- Is a sample quitclaim deed available here?
- Where to get free quick claim deed form
My boyfriend and I bought a house last November. (stupid stupid stupid) Well, now we've broken up since then and I want to get out from under the mortgage. He's too stubborn to sell it, and he can't get refinanced because he got laid off at his job and hasn't been at his new job for very long.
How should I go about getting off the mortgage? I've been reading, and it doesn't seem that a quit claim deed would do the trick.
How should I go about getting off the mortgage? I've been reading, and it doesn't seem that a quit claim deed would do the trick.
Hi Lilli,
Welcome to Mortgagefit forum.
You are right. A quit claim deed won't remove you from mortgage responsibility. What it will do is remove you from ownership of the house.
Do not quit claim your rights over the house until your boyfriend is able to get the mortgage refinanced in his name. If you do that, you will have no ownership of the house but remain liable to repay the loan.
One option is that the house is sold and the mortgage paid off from proceeds of the sale. But you are saying he is not willing to sell it. Well you can force the house to be sold off if you wish to by what is known as a partition lawsuit. As a co-owner of the house you can force the house to be sold off & the proceeds divided between both of you even when he does not want the house to be sold.
Partition lawsuit can be started by any co-owner and the court then gives order for the house to be sold and proceeds equally divided between the co-owners.
If you are interested in taking this step then please go through the following page which explains this topic: http://www.mortgagefit.com/know-how/partitionlawsuit.html
Colin
Welcome to Mortgagefit forum.
You are right. A quit claim deed won't remove you from mortgage responsibility. What it will do is remove you from ownership of the house.
Do not quit claim your rights over the house until your boyfriend is able to get the mortgage refinanced in his name. If you do that, you will have no ownership of the house but remain liable to repay the loan.
One option is that the house is sold and the mortgage paid off from proceeds of the sale. But you are saying he is not willing to sell it. Well you can force the house to be sold off if you wish to by what is known as a partition lawsuit. As a co-owner of the house you can force the house to be sold off & the proceeds divided between both of you even when he does not want the house to be sold.
Partition lawsuit can be started by any co-owner and the court then gives order for the house to be sold and proceeds equally divided between the co-owners.
If you are interested in taking this step then please go through the following page which explains this topic: http://www.mortgagefit.com/know-how/partitionlawsuit.html
Colin
my sister has a house she would like to quick claim to me to avoid legal issues. the reason would be for me to put the property in my living will so her children will have it when I pass away. the property is free and clear is my understanding. my question is, does anyone have to pay a gift tax on this and what other costs can I expect.
Hi Vinnie,
Welcome to Mortgagefit discussion board.
What legal issues are you referring to? Are there any liens on the house (like tax liens)?
If there are no liens on the house then I don't see why your sister wants to quit claim the house to you. She can very well create a will on her own so that the house goes to her children after her death.
Assuming that because of some reason it has become necessary for her to quit claim the house to you, let me answer the questions you have asked.
You are concerned about gift taxes but as the grantee you will not have any gift taxes to pay. Only grantor is to pay gift taxes and that also only if the value of the gift exceeds the allowed gift tax exemptions limits. As being the grantee you do not have any tax obligations. Read more - http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
The other thing you have asked is about the costs to expect at the time of ownership transfer. There will be attorney fee, deed recording expenses, and property transfer taxes which will have to be paid.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
What legal issues are you referring to? Are there any liens on the house (like tax liens)?
If there are no liens on the house then I don't see why your sister wants to quit claim the house to you. She can very well create a will on her own so that the house goes to her children after her death.
Assuming that because of some reason it has become necessary for her to quit claim the house to you, let me answer the questions you have asked.
You are concerned about gift taxes but as the grantee you will not have any gift taxes to pay. Only grantor is to pay gift taxes and that also only if the value of the gift exceeds the allowed gift tax exemptions limits. As being the grantee you do not have any tax obligations. Read more - http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
The other thing you have asked is about the costs to expect at the time of ownership transfer. There will be attorney fee, deed recording expenses, and property transfer taxes which will have to be paid.
Do let me know if you have any other questions.
Thanks
Blue
I owned my property in Calif., for over 20 years, prior to meeting my husband. It was rental property when I met my husband. We rented an apt elsewhere. We moved into property after I retired and he then co-signed for an equity loan on the property. He is now badly in debt and currently unemployed. he is contemplating filing bankruptcy alone. I am afraid my property will be taken although he signed quitclaim to me shortly after our marriage. We have resided together on the property for a total of 5 years. If he is required to list my house as community property, how will the bankruptcy court determine his interest?
Me and my husband have been married for several years now. When I met him he had a home and I moved in with him. Since then we have recently paid off the home but my name isn't on it. What do we need to do to add my name to our property??
Toni a quit claim deed can be used to include you as co owner for the house. After the deed is recorded you will become co owner along with your husband.
Sandy , which bankruptcy is he filing 13 or 7?
Hi Sandy,
Welcome to forums.
First of all, I am doubtful as to whether your husband needs to list the property. You need to ask the bankruptcy attorney with whom you are dealing with. And yes, the bankruptcy that you'll be filing does matter a lot in determining whether you will have to list the property.
Thanks
Welcome to forums.
First of all, I am doubtful as to whether your husband needs to list the property. You need to ask the bankruptcy attorney with whom you are dealing with. And yes, the bankruptcy that you'll be filing does matter a lot in determining whether you will have to list the property.
Thanks
Hi Sandy R,
In general, when a bankruptcy is filed, it creates an estate which includes the debtor's entire interest in property excluding qualified pension plans. Now, if the debtor is married and stays in a community property state, and files a joint petition with his/her spouse, then the two estates are considered as a whole. And, the entire interest of both the spouses property including community property is included in the estate. The process after this is same as filing bankruptcy from a state which does not follow community property laws.
However, if a one spouse file for bankruptcy, only then is the affect of community property is considered. But in your case, I don't think your husband needs to list the property as community property because only he is the one filing the bankruptcy. Also, your husband will not have to list the property if it falls under the category of exempt property as specified by California bankruptcy laws.
Hope this helps..
God bless you.
Samantha
In general, when a bankruptcy is filed, it creates an estate which includes the debtor's entire interest in property excluding qualified pension plans. Now, if the debtor is married and stays in a community property state, and files a joint petition with his/her spouse, then the two estates are considered as a whole. And, the entire interest of both the spouses property including community property is included in the estate. The process after this is same as filing bankruptcy from a state which does not follow community property laws.
However, if a one spouse file for bankruptcy, only then is the affect of community property is considered. But in your case, I don't think your husband needs to list the property as community property because only he is the one filing the bankruptcy. Also, your husband will not have to list the property if it falls under the category of exempt property as specified by California bankruptcy laws.
Hope this helps..
God bless you.
Samantha
Hi Sandy,
In California, there are two schemes of exemption and one can choose either of them.
Under Scheme 1, you can keep your home if:
The equity (that is, current value of home minus sale costs minus payoff balances on mortgages and all liens) is not more than $18,450.
good luck
In California, there are two schemes of exemption and one can choose either of them.
Under Scheme 1, you can keep your home if:
- There isn't more than $50,000 equity in your property (current home value minus costs of sale minus payoff balances on mortgages or any other liens. Also, you should not be single and must not be disabled.
- There is $75,000 equity in your house and you have a family. But no other member should have a homestead.
- The equity in your home is $125,000 and you must be of 65 years age or older or disabled.
- Your home equity is $100,000 and you are 55 years or older. You must be single and should earn less than $20, 000. The creditors must have forced the sale. The sale proceed are exempt for 6 months after you received it.
The equity (that is, current value of home minus sale costs minus payoff balances on mortgages and all liens) is not more than $18,450.
good luck
My sister and mother bought a home many years ago and then refinaced it only in my mothers name. My mother and sister are both on the title but my mother is on the mortgage. They want to sell but they are thinking about writing the quit claim deed from my mother to my sister to avoid paying the capital gains tax. My sister has been living in the property for over 8 years. What do you think?
Hi Victoria,
Capital Gains Tax is paid only when one earns a profit through the sale of a property.
But as your mother is thinking to quitclaim her share of property interest to your sister, then she won't have to pay any capital gains tax. Instead, for doing the quitclaim deed, she may have to pay the required Gift Tax if she do not qualify for the lifetime tax exemption limit ($1,000,000).
Capital Gains Tax is paid only when one earns a profit through the sale of a property.
But as your mother is thinking to quitclaim her share of property interest to your sister, then she won't have to pay any capital gains tax. Instead, for doing the quitclaim deed, she may have to pay the required Gift Tax if she do not qualify for the lifetime tax exemption limit ($1,000,000).
your sister may have to refinance the mortgage in her after she gets full ownership of the house. before making the decision to go ahead with ownership transfer you need to check if she will be able to continue the payments on her own or not.
about the taxes, as larry said by quit claiming the house capital gain taxes will be avoided but as a donor your mother may have to pay gift taxes if consideration she receives is less than current value of her property.
read more on tax implication of quit claim deed
miller
about the taxes, as larry said by quit claiming the house capital gain taxes will be avoided but as a donor your mother may have to pay gift taxes if consideration she receives is less than current value of her property.
read more on tax implication of quit claim deed
miller
I'am the exective of the will a full paid off home i like to get my part in cah for the home i like to know what the steps i need to take will was filed with the court