Does A Quitclaim Deed Give You Ownership?

Bit About Quitclaim Deed

The quitclaim deed may be the best option if you wish to transfer the ownership of your property quickly and efficiently. It only makes sense when certain circumstances are present. In this article, we’ll look at what it is, how it compares to other property transfer deeds when to use it, and how to fill it out.

In California’s terms, a quitclaim deed transferee transfers the grantor’s interest in the real estate title to the grantee. A quitclaim deed does not guarantee an interest in a property. The grantor transfers the property while the grantee receives it.

 

What Is The Process Of A Quitclaim Deed?

Using a quitclaim deed could be the most efficient way to transfer property ownership between two trusted parties.

You’ll have to fill out a quitclaim deed form to begin. You’ll have to include the grantor’s name, the grantee’s description of the property when you’d like it to pass, and other details specific to your transaction. Signing the form and legitimizing it by a notary is the first step. After filing the document at a county clerk’s office, both parties must sign it.

The quitclaim deed does not affect a mortgage directly. Unless the guarantor has paid off their mortgage or a legal mortgage transfer to the grantee. The mortgage remains a separate document the guarantor handles after they grant the property to someone else. Your local laws may vary regarding quitclaim deeds.

 

Do We Need a Quitclaim Deed & When Do We Use It?

Most commonly, quitclaim deeds apply when transferring property between family members. For instance, one spouse may officially sign a quitclaim deed to transfer home ownership following a divorce.

Quitclaim deeds can help when transferring real estate into a Living Trust. Before doing so, you must get the approval of the Trustee. Because quitclaim deeds don’t affect mortgages already in place.

Quitclaim deeds can also help to quickly reissue the title if there was an error during the initial transaction. A quitclaim deed can correct spelling mistakes or missing signatures on the title.

 

Using a Quitclaim Deed to Transfer Property

A quitclaim deed form must be in writing to be recognized to transfer property using a quitclaim deed. To be recognized as a legal document, quitclaim deeds must contain the following:

• Legal explanation of property that is suitable for transfer.
• It’s the county of the site.
• The date on which date of transfer is.
• The name(s) of the person who transfers this property (grantor).
• A character (s) of the individual who will receive this property (grantee).

Quitclaim deeds do not suspend any mortgage obligations but must include any money exchanged. Quitclaim deeds are usually received from the grantor, not the guarantee.

You shouldn’t use a quitclaim deed if you’re buying an actual property because it doesn’t give you the protection you need. In such a transaction, Chuck Vander Stelt warns against using quitclaim deeds.

 

A Quitclaim Deed Gives You the Freedom to Own Property.

It does transfer ownership rights from one party to another when a quitclaim deed applies in a given case. It does not, however, give you the freedom to own property.

 

 

Quitclaim deeds transfer the rights and interests of the grantor to the grantee. It does not confirm whether the grantor is a complete, partial, or non-owner (the document does not specify the grantor’s ownership status).

You must conduct a title search before closing to ensure the property belongs to you. Use a warranty deed if you want more protection for the buyer (or grantee). The warranty deed provides additional security and verifies the ownership status. But. Due to its guarantees and protections, it is more complicated than a quitclaim deed.

Giving someone ownership of a property with a quitclaim deed is possible. But it does not specify how much right it involves.

 

Do Quitclaim Deeds Sufficiently Transfer Ownership to Family Members?

Quitclaim deeds are a great option when transferring ownership to another family member. However, they have a few drawbacks. It is possible for the person receiving the title to receive a title tainted with problems or not get full ownership since quitclaim deeds provide no guarantees or legal protection.

As the grantee of such a deed, you should still verify the property’s ownership status and check for any liens or encumbrances on it, even if the deed was given to you by a family member.

Families should only execute quitclaim deeds when they are confident of their ownership status and are willing to verify it.

Using a quitclaim deed is an easy and quick way to pass on property to a family member, provided you are comfortable with the transaction, and the ownership and potential problems seem clear.

 

A Quitclaims Deed Is Enough For Title Insurance, Do You Think?

It is common for title insurance to be non-transferable. This means that if the grantor of a quitclaim receives ownership, new title insurance will need to be acquired. If you own a quitclaim deed, obtaining insurance can be more complex and impossible in most cases.

Insurers may hesitate to provide title insurance due to the deed’s lack of verification of ownership status or title problems. A warranty deed offers greater assurance about the property’s title and is preferable to other deeds.

Before accepting a property through a quitclaim deed, you should check with an insurance company or real estate lawyer. If title insurance isn’t unavailable, ensuring a quitclaim deed belongs to you is even more critical.

 

Ownership Rights Upon Executing a Quitclaim Deed?

Quitclaim deeds are an option when selling a property, but buyers should be cautious when accepting them. Sellers relinquish all ownership rights upon executing a quitclaim deed.

When you purchase property from the grantor, you will inherit the grantor’s ownership rights and accept any title clouds. It is unlikely that many potential buyers will use quitclaim deeds since the deeds don’t offer much legal protection and do not verify ownership details.

A home buyer could later discover they only partially own the property because other entities claim it. By purchasing a home via a quitclaim deed, for instance, a buyer could acquire ownership via a quitclaim deed. That could be a more appealing scenario.

To reduce the time it takes to find a buyer for your property, you should avoid using a quitclaim if you intend to sell it to someone who is not a friend or family member.

 

Is A Quitclaim Deed Equivalent To A Warranty Deed Concerning Ownership?

In the same way as a warranty deed, a quitclaim deed can provide ownership assurance but not the same level of ownership protection. It is possible to transfer property ownership with both types of deeds. But a quitclaim does not specify how much ownership is moving or what limitations are attached to it.

In contrast, a warranty deed assures the grantee that the property is free of any title defects and that the grantee receives full ownership.

Buyers with warranty deeds can take legal action against their seller if they discover issues with the property’s title (buyers with quitclaim deeds have fewer rights if title issues arise).

The grantee should not view these two deeds as interchangeable even though they provide the same level of ownership. A warranty deed provides a greater level of protection and assurance.

Except when a quitclaim deed serves as a means of transferring ownership, these are the best deeds to use.

 

What about Other Ownership Suits Overridden By a Quitclaim Deed?

A quitclaim deed cannot override property ownership claims. Deeds only transfer rights and interests from grantors to grantees. A quitclaim deed will not remove a property’s mortgages, liens, or other partial ownership interests.

Also, a quitclaim deed cannot resolve property disputes. It will be necessary to go to court if there is no agreement with the other parties. Before accepting a quitclaim deed, buyers need to determine if there are any other claims on the property.

Working with a real estate lawyer can uncover potential issues and other claims. If you accept the transfer without identifying these claims, it may prove costly.

 

Ins and Outs of Quitclaim Deeds

Benefits

1. Simplicity: Using a quitclaim deed simplifies the process of transferring property ownership.
2. Cost-Effective: A quitclaim deed is typically less expensive and quicker than other types of property transfers.
3. Speed: The transfer will proceed quickly and without delay, since no title search or insurance is required.
4. Flexibility: A quitclaim deed can allow you to transfer property without going through lots of paperwork or formalities.

 

Deficiencies

1. Limited Protection: Compared to other types of deeds that provide more robust legal protections, grantees of quitclaim deeds have limited protection against any claims made against the property.
2. Not Suitable for All Situations: If you are buying property or selling it or want to sell it to a third party, quitclaim deeds might not be appropriate.
3. Potential for Disputes: There may be disputes over ownership or claims against the property, which can lead to costly legal battles. A quitclaim deed may need to provide the grantee with more protection.

 

Questions Frequently Asked About Quitclaim Deeds

There are a variety of questions that people have about quitclaim deeds, but here are some of the most frequently asked ones.

 

What is the expiration date of a quitclaim deed?

Because quitclaim deeds permanently transfer ownership between two parties, they do not expire. However, a new deed must be recorded with the county clerk’s office to establish the official transfer of ownership.

Legal and financial issues can arise if the new deed does not go through the recording process.

It is advisable to file a new deed as soon as possible after the transfer, though there is no set deadline. It may be easier to transfer the mortgage if there is an official public record. If another family member claims the property, the deed on file can also be challenging.

 

Notarizing a Quitclaim Deed is necessary?

You must notarize your quitclaim deed before filing it with the county clerk, and depending on your state, you may also need a witness to sign it.

 

Do Quitclaim Deeds count as inheritances?

The transfer of ownership of the property through a quitclaim deed constitutes a gift to the law rather than an inheritance since the owner signs the deed. At the same time, they are still alive, rather than transferring ownership under a last will.

When a person who owns a property via a quitclaim deed passes away, an heir can inherit the property. In such cases, it becomes an inheritance. The initial quitclaim deed would only have legal significance if another claim to ownership arose.

 

Are Quitclaim Deeds Taxable?

A quitclaim deed is a gift from the grantor to the grantee based on federal gift tax rules. Because no money exchanges hands at the time of transfer, the federal government considers the gift a gift. A grantor would be responsible for gift tax implications, and their lifetime gift tax exemption would depend on the home’s value.

Tax forms for the grantor would need to be filled out after issuing the quitclaim deed. A property would almost certainly exceed the $15,000 gift tax limit per recipient, but a lifetime exemption of approximately $11.5 million is essential to remember.

Choosing a tax-forward strategy for managing your finances requires consulting with your financial advisor and estate planning team.

 

Final Thoughts

A quitclaim deed is an excellent option for some people when transferring property, resolving minor disputes, and performing title corrections. There are minimal requirements for quitclaim deeds, making the documentation process straightforward.

It’s simple, but there’s a catch. Taking on defective titles is risky due to the absence of guarantees or warranties in these deeds. However, all parties involved in this type of deed should have a trusting relationship with one another, such as family members and friends.

You should contact an attorney for guidance and an analysis of your situation when considering an agreement to quitclaim.