A quit claim deed is a legal transaction that allows the owner of a piece of property to immediately transfer ownership to another party. The term describes the owner “quitting” his or her rights to the property. The party gaining ownership to the real property does not get any warranties as to the title or condition of the property. If you gain a piece of property in a quit claim transaction, you are only getting whatever the previous owner was entitled to at the time the asset was transferred.
One of the most common occurrences of a quit claim deed is divorce. When a husband and wife are separating or divorcing, and one of them gets the sole rights to a piece of marital property, such as a home, the spouse giving up rights to that property can transfer the ownership quickly in a quit claim deed. This is a simpler and faster process than refinancing the loan or selling out shares in the property. It simply involves one spouse removing himself or herself from any rights to that property.
Quit claim deeds are also useful when property is transferred between family members or close friends. If you want to give a grandchild the gift of your home, for example, instead of selling him the home, you could simply transfer ownership in a quit claim deed. It is rare for a house or other piece of property to be transferred in a quit claim deed if you are trying to buy or sell a piece of property through traditional channels. There is almost always a relationship in place between the parties who initiate a quit claim deed.
Stephen K. Hatchey, a Florida real estate attorney, can help you navigate this process. To receive a free consultation, contact our offices at 866-200-4646.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.