Common Uses Of A Quitclaim Deed During Divorce

Common Uses Of A Quitclaim Deed During Divorce

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Use of quitclaim deed during a divorce is very common - if a married couple who jointly own a property are in the process of divorce one spouse can quit any interest in such a property by granting full rights of possession to the receiving spouse. If a wife is to keep the matrimonial home as part of the divorce settlement, the husband can execute the quitclaim deed to surrender the claim on such a house.

There are instances where the names of the two spouses appear on the real estate deed but, only one appears on the mortgage. In case of divorce, both spouses are entitled to the property but only the one named on the mortgage will be liable for debt accruing. The only way out for the spouse whose name is appearing on the mortgage is a quit claim to be executed by the other spouse. This will ensure that the spouse not named on the mortgage will not later lay claim to the property.

If both names are appearing on the real estate deed and on the mortgage, the spouse executing the quitclaim will still be liable to pay off the mortgage even after surrendering his/her right of ownership. The spouse executing quitclaim should contact the mortgage company to remove his/her name from the list of the debtor. This is however not easy since most lenders would wish to spread their risk by having many people from whom they can claim the debt in case of default.

There is an option of requesting the lender to allow the mortgage to be refinanced under the name of the person who has gained the right of ownership as a result of a quitclaim. The restriction, however, is that many lenders will only agree to such arrangement if the new owner has owned the property for more than two years.

A quitclaim is also necessary even on the property is not jointly owned by the couple. If for example, one of the spouses had bought a property before the marriage took place such a property is normally not a subject of contest incase of a divorce. If the spouse owning such a property decides to dispose it off there is a real possibility of the other spouse laying claim on such a property. The quit claim is appropriate in this case to clear the issue of ownership.

While signing a quitclaim it is imperative to be keen that the names appearing on the original property deed are the same appearing on such a quitclaim. Incase there is a change of name it should be clearly indicated to avoid issues during transfer of such a property. If for instance, a wife wishes to revert to the maiden name she should list the new name followed by the previous one with the term f.k.a denoting ‘formerly known as’.

It should be mentioned that once the quitclaim is executed and signed the process is irreversible It is especially difficult for the grantor to acquire back the property. There are exceptions however, if the beneficiary the grantee in this case is willing to return the ownership back to the grantor. The deed can also be revoked if proven that the grantor executed the deed under duress or led to sign deed based on a falsehood from the grantee.

Once divorced it is important that a quitclaim is executed at the earliest time possible when the court grants you the grantee an order to posses a property. If the deed is not signed in time and the would-be grantor is successively sued and the said property is attached, the grantee will have to pay the judgment. Likewise if the grantor is behind on tax, the internal revenue service can attach the property and in that case the grantee will have to foot the bill if such attachment was done before execution of the deed.

If you are a party to a quitclaim it is important you engage a qualified legal counsel to see you through the process. This facilitates a faster execution of the quitclaim. As earlier explained a delay on the execution of the deed may be detrimental to the grantee incase other issues arises before such execution is finalized.

For those who are divorced or separated, one would still need a quitclaim deed to dispose off a property even if such a property is under his/her name. This is because a spouse can claim a property owned and registered by the other spouse provided it was bought within the duration of the marriage. A quitclaim deed is a must at least in some county regardless of whether the court has awarded a spouse a property as a divorce settlement. If a spouse refuses to execute a quitclaim despite a court order awarding the property to the other spouse, contempt of court proceedings can be institute against him or her.

It is important for both parties to be civil in their dealings. Though divorce processes are sometimes hostile it is to the benefit of the grantee especially to have the issue settled amicably. Ensure you are privy to what is transpiring throughout the process. Make sure you sign the deed accordingly.

The quitclaim deed must be recorded in the land court system or the regular system depending on the system the land was initially registered. To make the deed legal, include a legal description such as a map, block and the number of the property. This will make it acceptable to the bureau of conveyance.

A quitclaim deed refers to a legal facility that the owner of a real estate can use to surrender his/her rights of ownership of such a property to a recipient. The owner conveying the property is the grantor and the one receiving grantee. The grantor quits his/her claim of the property transferring it to the grantee.

This deed differs with the normal real estate deed in the fact that the former includes no warranty pertaining to the ownership of the property under transfer. The grantor can only transfer the interest he/she posses at the time of transfer. Due to these limitations quitclaim is not normally used in the every-day property transaction. It is commonly used to transfer properties between family members.
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