What is a quitclaim deed?

On Behalf of | Jan 6, 2021 | real estate law | 0 comments

If you have the need to transfer ownership of property to someone else without a lot of hassle, then you may consider a quitclaim deed. According to the Rental Property Owners Association, a quitclaim deed is one in which you offer no warranty or promises about the property and simply just transfer ownership.

There are pros and cons to this type of deed. Some people may misuse them to transfer ownership of property that they never had ownership of originally. However, it is also a viable option in some specific situations.

Existing trust

The biggest disadvantage to a quitclaim deed is that you receive no guarantees or warranties about the property or the deal. For that reason, there should be some trust between you and the other person. Whether you receive or give the property, you need to have the ability to trust that it is occurring in good faith without any intent to deceive.

Some examples of when this might work well include transferring property to a family member or within a business relationship. A quitclaim deed may also work well in a divorce for transferring property between the spouses

Title issues

A quitclaim deed is also useful to help fix an issue with a title. It can correct an incorrect transfer from the past to clear up the title. Doing this will enable you to then sell the property without running into title issues that could halt or prevent the sale. However, this will only work if you can seek out the parties involved and they are willing to sign the quitclaim deed.