Repercussions of a Quit Claim Deed

Attorneys Real Estate Group

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“Property ownership in California passes using three different types of deeds. A quitclaim deed can be used by those selling property within the family or through a trust to avoid extra hassles. A grant deed can transfer property within the family or through a trust, but it could do more harm than good.”

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Repercussions of a Quit Claim Deed

Our goal is to help you make the best decisions regarding your situation. To help you understand what a quitclaim deed is, when to use one, and where it falls short, we will help you know what Repercussions of a Quit Claim Deed will have for the future.


Quitclaim deed – what is it?

What is a quit claim deed in California? A quitclaim deed, also known as a quitclaim title or quitclaim agreement, is an important document that transfers ownership rights of a real estate property to another person. Besides resolving disputes and removing names from titles, it is also possible to gift or transfer property between family members without a sale.

The following blog explains what a quitclaim deed is, how it works, and its advantages and disadvantages.

Transfers between family members or divorcing spouses often occur with quitclaim deeds. Also, they may be helpful when the seller is still determining their ownership interests. Such as when there may be competing claims or unclear title rights.


Why Does A Quitclaim Deed Exist?

It is common for buyers and sellers to use warranty deeds to transfer property since quitclaim deeds do not guarantee the seller has total ownership interests in the property. You can protect yourself from risky property deals by understanding the differences between these deeds and others.


How Repercussions of a Quit Claim Deed Work?

There is no guarantee about the title of the transferred property in a quitclaim deed. Instead, the grantor transfers their ownership interest to the grantee.

In a quitclaim deed, the grantor transfers the property to someone else. The grantor is the person who is currently the owner of the property. In addition to the names and addresses of the grantor and grantee, a property description, and the date of transfer, the grantor must complete the quitclaim deed.

There must be the presence of a notary public when the grantor signs the quitclaim deed. The notary public verifies the grantor’s identity and witnesses the process. The grantee receives the quitclaim deed.

Upon receiving the quitclaim deed, the grantee must register it at the county recorder’s office, where the property lies. By doing so, they create a public record of the transfer of ownership and help protect their ownership interests in the property.

It’s important to understand that quitclaim deeds do not guarantee title to a property. This is why they are popular when the grantor and grantee know each other well. And when there is no doubt about their relationship or the property’s ownership.


Deeds of quitclaim vs. deeds of warranty

Despite the similarities between quitclaim deeds and warranty deeds. There are differences between them regarding the level of protection they offer the buyer during real estate transactions.

There is no guarantee or promise regarding the title in a quitclaim deed, but the grantor does transfer the property interest to the grantee.

A grantor surrenders all rights to property without making any promises or guarantees about the title. The grantee should know of any liens, encumbrances, or defects associated with the title.

Unlike a warranty deed, a warranty deed transfers property ownership and includes the grantor’s promise that the property is clear and marketable.

Grantors guarantee that they own the property free of liens or encumbrances. And that they have permission to transfer ownership to grantees. Grantors may be liable and compensate the grantee for any losses incurred after the transfer if there are any issues with the title.


Deed of Quitclaim: When to Use It

What is a quitclaim deed California? A quitclaim deed is a way to purchase a property requiring thorough research and trust. Since trust is essential, quitclaim deeds often occur when transferring inter-family property. Using a quitclaim deed instead of title insurance and attorney fees may be an alternative for families who wish to avoid these costs.

In a bank refinance, for example, a bank would not grant a mortgage to a trust. Because a natural person must own the property, quitclaim deeds are also used. Thus, a trustee can use a quitclaim deed to transfer property ownership to a real estate agent before securing a bank loan. Then, the property will be reverted to the trust after the loan is safe.

How to overturn a quit claim deed? Transferring property ownership via a quitclaim deed between spouses is possible. However, inter-spousal grant deeds are more common in real estate transactions.

Unless you know the seller deeply, avoiding transactions that use a quitclaim deed is a good idea. Taking on the risk of quitclaim deed transfers may substantially cost you and your family.


Using a Quitclaim Deed to Transfer Property

It is essential to have a quick claim deed California in writing to be recognized when transferring property. An actual quitclaim deed consists of a legal description of the property sold:

  • Its location,
  • The date of transfer,
  • The name(s) of the transferor (grantor),
  • And the name(s) of the recipient of the property (grantee).

It is important to note that if money is exchanged hands, it must also appear in the quitclaim deed. The quitclaim deed does not suspend your mortgage.

Quitclaim deeds are usually notarized and registered with the county clerk where the property lies. Generally, a grantor signs the deed but not necessarily the guaranteed recipient.

It is essential to ensure your real estate transaction is safe by a California quitclaim deed when purchasing real estate. A real estate agent in California warns against using California quit claim deed in such a transaction. It should raise a red flag for the buyer to use a quitclaim deed in an arm’s length transaction.


Creating a Quitclaim Deed

Creating a quitclaim deed involves several steps. Here are the following important steps to follow:


Identify the Parties Involved.

It is essential to identify both the grantor (the person who transfers the property) and the grantee (the person who receives the property).


Get the Property Information.

Get details about the property, such as the legal description, the address, and the county in which it lies.


Draft the Quitclaim Deed.

During the write-up of the quitclaim deed, include both parties’ names. The property statement states that any interest the grantor has in the property will pass to the grantee. A real estate attorney can draft the quit claim deed loopholes California, or you can find templates or examples online.


Sign the Quitclaim Deed.

The grantor must sign this document before a notary public or other authorized official.


Record the Quitclaim Deed.

As soon as the ownership transfer document is signed and recorded with the appropriate state or county authority, including the county recorder’s office, it is considered official and becomes a public record.


The Repercussions of a Quitclaim Deed

In some situations, a quitclaim deed may be helpful. But it’s essential to understand the repercussions associated with its use.


The Repercussions of a Quitclaim Deed


Needs improvement in Warranty protection.

Quitclaim deeds lack warranty protection, which is one of their main downsides. Quitclaim deeds offer no such assurances as warranty deeds, guaranteeing the grantors legitimate ownership and the absence of any liens and encumbrances on the property. The grantee must take responsibility for all risks associated with the title, including hidden liens and legal issues.


Undiscovered title issues with quitclaim deeds.

There is a risk of undiscovered title issues with quitclaim deeds. The grantee is responsible for any existing liens or mortgages on the property.

The grantee may face unanticipated financial obligations or legal disputes. If there are any liens, mortgages, or other claims against the property. Before accepting property through a quitclaim deed, you must conduct due diligence.


A lack of adequate protection for grantees

The grantee receives little protection from a quitclaim deed. Even though the grantor can transfer their interest in the property with it. Whenever there is disagreement or a title problem involving the property. The grantee may be able to seek some limited legal relief from the grantor.

This lack of security makes quit claim deed loopholes less suitable for real estate purchases. On the other hand, warranty deeds are often preferred due to their extensive guarantees.


Financial Obligations and Mortgages

Quitclaim deeds do not absolve grantors of existing mortgages or financial obligations. The grantor controls any unpaid loans or debts related to the property following the transfer. Both parties must communicate these commitments throughout the transfer process to avoid problems or misunderstandings.


Relationship Dynamics in Families

Suppose a quitclaim transfers property within a family or between parties with high trust. In that case, it can significantly impact family dynamics and relationships. Conflicts can arise if there is concern about how transferring property ownership will affect finances or rights. Open communication, openness, and legal counsel are crucial in such transactions to reduce any repercussions.


Quitclaim Deed Benefits

Quitclaim deeds provide several benefits. One significant advantage is that they are fast and easy to complete when both parties are familiar with each other. In addition to sharing property without incurring transfer taxes. A quitclaim deed California can transfer property to family members or business partners.

In California, a quitclaim deed is valid for transferring real estate ownership. Accordingly, the grantor’s interest passes to the grantee, who assumes all risks with the property.

These types of deeds have other benefits as well:

  • A divorce or property dispute may result in removing someone’s name from a property title.
  • Using a living trust or another entity is one way to transfer property.
  • Transferring property may be less expensive than other methods.
  • A good tool for transferring partial ownership of a home
  • A valuable tool for gifting property without incurring gift taxes to family or friends
  • A method for resolving title discrepancies and defects
  • It can be helpful in resolving boundary disputes.
  • Dissolution of a marriage or partnership can result in property transfer to the spouse or domestic partner.


Quitclaim Deeds: Disadvantages and Risks

What are the legal risks to signing interspousal transfer deed? Even though quitclaim deeds offer some advantages, they pose significant risks and disadvantages. Among the biggest drawbacks is that the grantee handles all property risks, including:

  • Title defects,
  • Liens,
  • And encumbrances.

Suppose the grantor has outstanding debts or judgments against them. These can attach to the property and be the grantee’s responsibility, which can be a significant risk.

According to the court, there was no relief from a judgment lien against the property through a quitclaim deed. No matter if the grantee knew the judgment lien at the transfer time. It became their responsibility to pay the judgment lien attached to the property.


What are the disadvantages of a quit claim deed?

The following are other types of disadvantages and risks:

  • In the event of title defects or other problems with the property, the grantor is not responsible.
  • Including any title defects and encumbrances, the grantee assumes all risks associated with the property.
  • Providing no warranties or guarantees regarding the title to a property
  • A transfer that needs to be properly recorded in public records may not provide clear evidence of property ownership.
  • A lack of clarity regarding the parties’ intentions in transferring the property may clarify the meaning of the transfer.
  • Lienholders or judgment creditors with legal interests in the property may not be protected from future claims by the grantee.
  • In some situations, such as the case of mortgages or sales, a warranty deed may not be an appropriate tool for transferring property.


If I Want To Cancel A Quitclaim Deed, How Do I Do It?

You can easily overturn or cancel a quit claim deed California if both parties agree. It is possible to challenge a quitclaim deed in court if it appears to have been used illegally to transfer a property. A statute of limitations may apply to such challenges, varying from state to state.



Although quitclaim deeds offer many advantages, they have significant disadvantages and risks. There are some benefits to them, including the ease of transferring ownership. However, there are also risks associated with title defects and other encumbrances.

When creating and recording a quitclaim deed, an attorney must ensure the deed is drafted correctly, recorded correctly, and compliant with the relevant state laws. A property owner can avoid potential legal and financial risks by transferring the property this way.

You can rely on Attorney Real Estate Group for assistance with the issues associated with quitclaim deeds and provide the legal help you need.

Hedy Ghavidel

HEDY GHAVIDEL Managing Attorney  Roseville Office  1-866-471-6981  Bio...

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