Ownership and Quit Claim Deed

The deed to a property is a legal document that establishes ownership. There are different types of deed and for this article is the transfer of ownership through a quit claim deed?

Quit claim deed is a type of deed used in the transfer or sale of property when a grantor, a person who has interest or claims in a property, is essentially allowing the transfer of that property to another party/person. The grantors do not actually own the property but rather simply have responsibility over it. For this reason, grantors have the legal right to sell the property.

When used in a sale of a property, quit claim deeds can result to significant risk to the buyers of the property. The quit claim deed offers little protection for buyers. Although the property will be transferred to the grantee from the grantor, the quit claim deed does not legally protect the grantee from future claims to the property. The grantor does not legally own the property and so that leaves a back door open for potential future problems regarding the property. So it is best to do your home work and know if there are other parties who have claims to the property you will be buying. With this, you can decide if the quit claim deed is appropriate for the transfer.

However, quit claim deeds still have other uses that are very beneficial. In the case where there are multiple people who claims ownership or interest to a home, such as when a relative passes away, a quit claim deed is an effective way of one of these people to legally transfer their interests in the home to another person. A divorce can create a similar situation, making the quit claim deed very useful.

Quit claim deeds are often used in a couple situations due to their simplicity compared to the other types of deed that have to be filed during property transfer and/or sales. First, the quit claim deed is used to clear up a title. Second, quit claim deeds are effective for those who want to use a simple method for giving up their interests in a certain property.

It is important to be smart about which type of deed you will be using and signing whether you are a seller or a buyer. Know what the potential risks are and the protections that are being offered by the deed so as to better be prepared. Quit claim deed is a method for transferring title to a property, but not a recommended one.