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- Quit Claim Deed
- A legal instrument (legal document)
which is used to transfer (convey)
rights in real property from one entity
(the grantor) to another (the grantee)
however only the interest that the
grantor currently holds in the property.
Commonly used in transfers of title or
interests in title, quitclaims are often
made to family members, divorcing
spouses, or in other transactions
between people well-known to each other.
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Common Uses Of A Quitclaim Deed
- Real Estate Transfers Between Family
Members. Quitclaim Deeds are often used to
transfer property to and from family
members. Transfers between parents and
children, between siblings, and between
other closely related family members are
easily done with this type of deed.
- Adding Or Removing A Spouse From Title.
Whether resulting from a divorce or a
marriage, a real estate owner can use a quit
claim deed to add a spouse to or remove a
spouse from the title of the property.
- Transferring Real Estate To An LLC Or
Corporation. With holding of real estate in
the protection of LLC's and Corporations
becoming more common, so are quit claim
deeds. Corporate transfers are usually done
with this type of deed as it is generally a
transfer between closely related entities.
- Transferring Real Estate To A Trust. As
with corporate transfers of real estate,
transfers to a Trust are equally common.
Family planning that deals with property
meant to carry on through generations often
involves an initial transfer from a family
member into a trust via a quit claim deed.
- Removing A Cloud On Title For Title
Insurance. In the process of insuring title
to real estate title companies may find a
"cloud" in the title. Generally this means
that there appears to be someone may or may
not have an interest in a property that has
not been accounted for and it is causing a
break in the chain of title. It is common
for the company insuring the title to
require the person in question to quit claim
their interest in the property prior to
issuing the title insurance.
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Elements Of A Quit Claim Deed
While each County has specific formatting
requirements for the recording of documents such
as quit claim deeds there are main elements that
are common to all real estate deeds.
- Title. The title of a legal document
tells the world what type of document it is.
In this case the title is "Quit Claim Deed"
- Executed Date. This is the date that the
legal document was completed, signed, and
executed.
- Grantor. This is the person or persons
that is transferring their rights to the
real estate to someone else. For the purpose
of a quit claim deed the term "person" can
refer to a natural person, an LLC, a
Partnership, a Corporation, a Trust or
Trustee, or any other entity that can
legally own real estate.
- Grantee. This is the person that is
receiving the rights to the real estate that
are being transferred. Again here, the term
"person" refers to any entity that can
legally own real estate.
- Habendum. This is the meat of the deed,
the legal speak which actually transfers the
rights to the property. Generally it is a
phrase similar to: "...does hereby remise,
release and quitclaim unto the said Grantee
forever, all the right, title, interest and
claim which the said Grantor has in and to
the following described parcel of land, and
improvements and appurtenances thereto..."
- Consideration. This is what the Grantee
gives to the Grantor in return for the
rights to the property. While in some cases
a deed may be enforceable without
consideration it certainly muddies the
water. It's a good idea to check with a tax
accountant before transferring real estate
with a "no consideration" or "gift" deed as
there may be tax issues.
- Legal Description. Here is where the
description of the property being
transferred is listed. The format of the
legal description varies from state to
state. The types of legal descriptions are:
metes and bounds, rectangular survey, and
lot and block. The "lot and block" legal
description is the most common however it
depends on your state. A typical lot and
block description looks like: "QCD SUBDIVISION, 2ND AMD, LOT 112 BLOCK
3".
- Signatures. Most states require only the
Grantor to sign the deed and for it to be
delivered to the Grantee for it to be valid.
Grantor's signatures usually must be
notarized and in some rare cases separate
witnesses must also witness the Grantor
signing.
- Prepared By.
This section lets the world know who
prepared the quitclaim deed. Generally this
is the Grantor or an attorney.
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Recording A Quitclaim Deed
In most states your quit claim deed is
considered complete once it has been signed by
the grantor AND delivered and accepted by the
grantee. Recording the deed is not required by
law in most states in order for the transfer
from the seller to the buyer to take place.
However, in order for you to be covered to
protect yourself from future claims on the
title, you should record the deed with your
local recorder or register of deeds. This should
be done as soon after the delivery and
acceptance of the grantee as possible. Once a
quit claim deed is recorded it becomes part of
the property's "chain of title" and solidifies
the point in time in which the grantee received
an interest in the property. |
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Quit Claim Deed Information
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State Quitclaim Deed
Information |
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