If you own a home and would like to transfer the ownership to someone else, or you need to remove someone from your home's title, a quit claim deed must be filed. This is a legal document that is also known as a "deed of release." It is most commonly filed in instances of divorce or death.
When to File
A quit claim deed is typically filed when one party wants sole possession of a property. The purpose of the document is to either transfer sole ownership from one party to another, or to remove one of the parties from the title completely. This is common when someone passes away and the ownership now needs to be moved to the trustee of the estate. Divorced couples often use a quit claim deed to give sole ownership of a home to their soon to be ex spouse. It should be noted that the quit claim deed does NOT remove the other party from the home's mortgage. This must be done separately through the mortgage company.
The Filing Process
Every state and locality has variations for what is acceptable for a quit claim deed to go into effect. The person giving or transferring the property is known as the grantor, and the person receiving the property is known as the grantee. Both names should appear on the paperwork to be filed. Other information needed includes the property address as well as legal description of the property, the current assessed price of the property, a signature from a notary public, and the grantor's signature. In some states, witness signatures may also be required. It is highly recommended you seek the advice of a real estate attorney to ensure the paperwork is completed correctly.
What it Entails
Once a quit claim deed is approved and has gone through the proper legal channels, the grantee is now the sole owner. This process offers no guarantees for the condition of the home, its resale value, or any other warranty related issues. It simply means that one person is now on the title rather than the other. There is usually no legal recourse in the event that the new owner has any kind of losses due to taking possession of the property. If or when the home is resold, the grantee now will receive all profits as a result of that sale, and the grantor does not have any legal ground to collect any monetary gain from the sale. Talk to a lawyer such as Iannello Anderson for more information.Share