When it comes to transferring property, people get overwhelmed thinking about the hassles they’ll have to go through. It takes a long time for the paperwork, verification, and whatnot.

However, there is an easy way of transferring property from one owner to another—a quitclaim deed. It is a quick and easy legal approach for property transfer. It is also known as a quick claim deed.

If you are considering a quitclaim deed for your property transfer, we suggest you go through the entire article. It will give you an in-depth idea about how it works and in which situations it is applicable.

What is a Quitclaim Deed?

A quitclaim deed is a document that allows transferring ownership of properties. The grantor (the initial owner of the property) transfers their property to the grantee (the new owner) without any additional clauses. The grantee will receive the property as it is without any guarantee of relinquishing from the previous owner’s side.

A quitclaim deed does not involve too many legal restrictions or authorizations since it is done between two trusted parties. Typically, a quitclaim deed is used to transfer property among family members.

Types of Deeds for Property Ownership Transfer

In general, there are two types of deeds that allow transferring property. Depending on the circumstances, one of them is used.

1.Warranty Deed

A warranty deed allows the transfer of property with some additional statements or legal obligations. Without satisfying those requirements, one cannot claim a warranty deed. Statements in a warranty deed include:

• The grantor is the owner of the property.

• The grantor has the right to transfer the property to the grantee.

• The grantor states that there is no mortgage, liens, or creditor involved, and such parties cannot claim the property.

Title insurance provides backup for warranty deeds. Therefore, they need to verify the authenticity of the claims before finalizing the transfer.

2.Quitclaim Deed

On the other hand, quitclaim deeds do not have many legal restrictions or statements. Usually, there is no money involved; only the transfer between two owners. Moreover, no title insurance will be issued for the quitclaim deed. Hence, there will be no verification for the grantor or the property.

Warranty Deed vs. Quitclaim Deed

The significant difference between a warranty deed and a quitclaim deed is that a warranty deed involves monetary transactions and legal restrictions.

It is used to buy and sell real estate, where the previous owner gives the full right of the property to the new owner, cleaning out any mortgage, debts, etc. It is a more formal and time-consuming approach to property transfer.

On the other hand, a quitclaim deed is only about transferring property between two parties. There is no legal clause involved for further speculation. It does not affect or change the mortgage on the property.

An Example: Warranty vs. Quitclaim Deed

Here is an example for better understanding. Imagine you live in Georgia and want to buy land there from a real estate agent. You will provide money and get the land in return. In such a scenario, you will get a warranty deed from the county clerk in Georgia.

On the flip side, imagine your father owns land in Georgia and wants you to own it from now on. in this case, you need to go for a Georgia Quit Claim Deed.

In this case, there will be no exchange of money or verification. You will simply become the new owner of the property.

When Do You Need a Quitclaim Deed?

As we have already mentioned, a quitclaim deed is used when both the parties trust each other, so usually, it’s between family members. However, there can be few circumstances when a quitclaim deed is relevant.

1.Transfer Between Family Members

A quitclaim deed can be useful when one family member wants to transfer the ownership of a property to another family member. In most cases, one family member is interested in property investments and later transfers the property to family members.

For example, parents transferring ownership to their children, a sibling transferring property to another sibling, and so on.

2.Adding a New Family Member after Marriage

When one gets married, they might want to add their spouse to the title of a property they own. In that case, they can do so by quitclaim deed.

3.Removing Spouse after Divorce

When you want to remove your partner from the ownership of a property, especially after divorce, that too can be done with a quitclaim deed. Keep in mind that other mortgages or loans will remain the same.

4.Gifting Property

This is similar to inheriting property. When one wants to transfer ownership to another family member as a gift, they can obtain a quitclaim deed.

5.Correcting Defects in Title

If you need to change or update the title of a property, the easiest procedure is to do it through a quitclaim deed.

Apart from personal reasons like inheritance, marriage, or divorce, change in property values, involvement of technology in property investments, inflation, change in government policies, etc. can also make people consider transferring ownership of their property to someone else.

How to Initiate a Quitclaim Deed

The information that must be in a quitclaim deed is the property description and location, grantor, grantee, and date of transfer. This document needs to be notarized by the local county clerk.

To Conclude

We hope you now have a fair idea about what is a quitclaim deed and when you should get it. Remember that the quitclaim deed should be done among two trusted parties as it is a very loose legal agreement.

Also, keep in mind that if you are not entirely sure about your decision on transferring your property, you should consult a lawyer.