If you are planning on buying or selling a real estate property, you will need to be inform with varies financial transactions. These financial transactions can get complicated due to its legalities. For this reason, it involves a set of legal documents and a team of legal professionals or lawyer. If you need to sell a house at this time, you will need to provide a warranty deed to prove ownership. But before we get into these legal formalities, we will talk about quit claim deed in this section.
Quit Claim Deed
Quit claim deed covers no guarantees, warranties or promises to the grantee. Sellers who request for quit claim deeds don’t want to carry any agreements to the buyers. This deed is used when the seller doesn’t want to promise anything to the buyer.
Quit Claim Deed Has Least Amount of Protection Unlike Any Deed
A quit claim deed is well known as a non-warranty deed due the fact that it conveys the interest of the seller in the property. In this deed, the seller only releases, remises and quit claims the property to the buyer. Which means there are no guarantees or promises regarding the tittle made to the grantee. It especially highlights that “The Grantor makes no warranty, express or implied, as to title in the property herein described.” When the seller doesn’t have any interest in the property, the buyer gets zero protection from the seller, thus having the lease amount of protection.
Quit Claim Deed is Only Accepted Because of Trust and Know-how
When a seller demands for a quit claim deed, only accept this claim when there is minimum risk, or no risk involve. You can accept it from the seller whose you know very well or deemed trustworthy. In this complicated society, quit claim deeds are not used in professional businesses or exchanged among strangers, they mainly used within a family where siblings or spouses who want to add them to the title. All you need to ensure is the legitimate of the person.
Quit Claims Can Be Used to Clear Title Defects
Another aspect of the quit claim deed is that it also used to clear the history defects of a real estate title. Title defects are the issues that are present in the title such as fail wordings, invalid or missing signatures, missing real estate documents, spelling mistakes or other issues in the title. A quit claim deed can be presented in public records after resolve any of those issues.
Quit Claim Deed are Effective if the Title is Good.
A quit claim deed is just as effective as a warranty deed but only when the title is good. Though the lack of promises, warranties and guaranties make a quit claim deed seem uncertain and unsure to the buyer, it is still appropriate if the title is good. Also, if the seller is unsure about the status of the title, then a quit claim deed seems suitable.
Quit Claim Deed Only Affects the Ownership
This deed brings the seller to certain risks, but they are usually used within a family. Due to this nature, it is not suits where the buyer wants to have guarantees, promises or where properties are involved in outstanding mortgages. This deed only responsible for the ownership and nothing else, not the mortgages nor the warranties.
What is Included in a Quit Claim Deed Template?
A quit claim deed template involves the following elements and parties.
- Grantor: The seller of the property, they can be individual or a corporation, a company.
- Grantee: The buyer of the property, who will soon be the new owner of the property.
- Mailing Address: The physical street address, including no P.O. Box Number.
- Parcel Number: A listed number on the property tax treatment. If you have difficulty tracking the parcel number, you can visit or call your local court office.
- Consideration: The amount of money that is paid for the property from the seller to the buyer.
- Witnesses: They are required during the quit claim deed by law. The signatures by both parties are witnessed by these individuals.
- Legal Description: It explains the property that is going to be transferred to the new owner, usually covers the details of the property.
- Notary: A lawyer or attorney whose job is to transfer the property to a notary public. They are responsible to verify signatures of both parties on the quit claim deed to check for authenticity.