Transferring property can quickly become a complex, expensive, and time-consuming endeavor, especially when issues regarding potential claims or liens against the property arise. A knowledgeable real estate attorney can help you better understand what a quitclaim deed means and the financial expense and time needed to obtain one.
Understanding Quitclaim Deeds
A “quitclaim” deed refers to a type of property deed used to transfer ownership under circumstances in which the property seller makes no promise or warranty regarding the status of the property title to the buyer. In standard property transactions, a seller may issue a general warranty deed, under which the seller promises that they have delivered title to the property free and clear of any claims or liens on the property. Sellers may also issue special or limited warranty deeds that deliver the property free and clear of specific types of claims or liens or disclose specific claims to a buyer.
As a result, a seller makes no guarantee under a quitclaim deed about the status of the title they hold (if any). A buyer who accepts a quitclaim deed assumes the risk that the property may have a defect on the title that can cause legal or financial issues for the buyer, such as a party appearing with superior title to the property or a party seeking to collect on a claim or lien from the buyer who now owns the property. Furthermore, a quitclaim deed usually means that a buyer cannot pursue a claim or legal action against a seller should title issues with the property arise after closing.
Parties frequently use quitclaim deeds in situations where a property transfer may occur within a short timeframe that does not allow a seller or transferor to make reasonable promises or warranty regarding the property’s title. A property owner may also use a quitclaim deed when they need to dispose of the property and will accept a reduced price to compensate the buyer for the risk of future legal issues with the property. Common situations that use quitclaim deeds include:
- Transferring property from one spouse to another in divorce
- A joint tenant or co-owner buying out their co-owner(s)
- Creating a joint tenancy or tenancy in common
- Waiving any rights to inherited property
- Distressed sales of property
- Gifting property to other parties
The Costs of Pursuing a Quitclaim Deed
Although quitclaim deeds facilitate a more efficient property transaction, utilizing one has some costs. These include legal fees to hire a real estate attorney to draft the deed or to have the buyer’s attorney review it, notary public fees to execute the deed, and recording and filing fees to file and record the deed with the county registry.
Contact a Real Estate Attorney Today
When a quitclaim deed may protect your rights and interests, get the legal help you need to pursue your legal interests. Contact the Law Office of Vogel & Mourelatos, LLC, today for an initial consultation with our experienced legal team to learn more about quitclaim deeds and the costs of pursuing one.