Understanding Quit-Claim Deeds: A Comprehensive Guide§
A quit-claim deed transfers the ownership of a piece of real property from the seller to the buyer. Unlike warranty deeds, a quit-claim deed offers no guarantees. The buyer accepts the property with any liens, taxes, assessments, covenants, or encumbrances that might affect the title.
When a seller signs a quit-claim deed, they’re only transferring the interest they hold in the property. Example: If a husband and wife own a home jointly, and the husband signs a quit-claim deed transferring his interest in the property to their daughter, the daughter and her mother share ownership of the home. If the mother subsequently signs a quit-claim deed conveying her interest to the daughter, the daughter becomes the sole owner of the home.
Quit-claim deeds are typically used:
- Among family members during personal transactions.
- In situations where the ownership of the property is clear and undisputed.
By using a quit-claim deed, you simplify matters such as transfer of property rights after a divorce, correcting defects in the title of the property or gifting property to relatives.
Related Terms: warranty deed, property title, property lien, property taxes, property assessment, property covenants, property encumbrances.
