A quitclaim deed is a legal way to transfer interest in real estate property. It is often used to quickly transfer property ownership from one individual to another. The original owner of the property “quits” their ownership of the property in question, leaving the recipient in control of the property.
With most major property transfers, a warranty is used to ensure the quality of the property. These warranty deeds can be classified as general or special and protect the buyer from any problems with the property. The lack of warranty in a quitclaim deed is one of the reasons that they are only used in specific circumstances.
With the consent of both parties a warranty may not be necessary on the property. For example, quitclaim deeds can be used when transferring property as a gift, to place a piece of property under a business entity, or to add someone to the deed. In some places, they can even be used in tax deed sales.
When dealing with property transfer, it is important to know what all your options are. Despite the apparent problems that can arise with quitclaim deeds, there is a purpose to being able to quickly transfer interest in a property. Quitclaim deeds may be the best way to transfer property quickly in cases of guardianships or conservatorships.
When to Transfer Property Quickly
When an individual is placed under a court-ordered guardianship, the guardian may have to decide how to manage the property that they’re now in control of. Some of this may involve quitclaim deeds to ensure that property can be transferred quickly between the family.
Quitclaim deeds can be the best solution in many cases involving guardianships since the family can be trusted to know the best solution to handle the property. There may already be a plan in place that requires a quick transfer to enact that plan. Warranties are not necessary when everyone is on the same page regarding managing a piece of property.
Quitclaim deeds can also be used to quickly transfer deeds before a guardianship is put in place. This allows the property owner some control over where their property goes before they lose control of it. If there is a particular plan that an individual has for their property, this can be a great way to ensure that plan is put into action.
Some pieces of property may need special care or attention. It may also have sentimental value to the family or one member of the family. Quitclaim deeds provide a way for property to be transferred to someone who knows how to manage the property without drawing up a contract detailing how to care for it. It also provides a quick way to keep the property in the family.
The Importance of Property Warranties
Warranties exist with many property sales and transfers because it grants protection for the buyer. If there is something wrong with the property that the original owner knew about, they can be held responsible for that with the use of a warranty. When dealing with property sales, having a proper warranty will ensure that the buyer has some protection.
When considering buying or transferring property in all circumstances, it is important to know where you’re liable and what you’re responsible for. Quitclaim deeds should not be used in general sales because the seller doesn’t have to be responsible for any problems with the property they’ve sold.
That’s why quitclaim deeds are typically done within families, often as gifts. There are reasons to transfer the property quickly. Quitclaim deeds allow for the property to be managed properly in cases of guardianship without having to go through a potentially expensive and long process. There is no sale involved in quitclaim deeds which makes the process faster.
When to Use a Quitclaim Deed
Quitclaim deeds are rare and can be mismanaged quickly because of the lack of protection they have to the buyer. Quitclaim deed transfers are not sales, however, and can be managed much more quickly. Being able to transfer deeds quickly is useful for adding a new spouse to property or gifting property to a family member.
They can also be useful in cases of guardianship. Whether before or after a guardianship is put into place, quitclaim deeds can be used to ensure that property is handled properly and to the owner’s wishes. Whether to pass down property to make sure that a piece of land gets the care it needs, quitclaim deeds provide a quick way to ensure that happens.