A quitclaim deed is a legal document in which one person transfers her interest in a piece of property to someone else without making any guarantees of possession. The person who issues the deed is known as the”grantor,” because she is granting her rights to another party; the recipient of the deed is known as the grantee.
Goal
A quitclaim deed only transports the grantor’s interest in the property to the grantee. It doesn’t spell out exactly what rights–if any–that the grantor actually had to submit a claim about the house, and it’s not a guarantee that no one else will come and lay claim to the house. A quitclaim deed is not proof of possession. It simply states,”Whatever claim I had on this house, I’m passing to you.”
Elements
A typical quitclaim deed lists the name and legal address of the grantor, the name and legal address of the grantee and a comprehensive legal description of the house in question, like the particular lot number in a subdivision. It includes an overview of conveyance, where the grantor releases all claims to the house. Both parties sign and date that the deed, and the document is generally notarized.
Alternative
The substitute for a quitclaim deed is a warranty deed. In a warranty deed, the grantor ensures that he is the rightful owner of the house, that no one else has any claim to the house and that he is transferring ownership of the property to the grantee.
Significance
Buyers of property purchase title insurance to protect them in the event of a dispute over whether somebody else has a claim to the property–either an ownership stake or a lien. Title insurance providers frequently call for a guarantee deed, not a quitclaim deed, so as to compose a policy.
Employs
Warranty deeds generally accompany property sales. Quitclaim deeds are more prevalent in cases in which possession of property is transferred without a sale, like when a member of a family surrenders her claim to a jointly owned piece of land. They also may be used when legal possession of a parcel might not be apparent, but a party desires it on the record that he makes no claim on the package.