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When to Use a Quitclaim Deed. A Quitclaim Deed is a document that is used to transfer ownership of real property from one party to another. Quitclaim deeds are also sometimes called quit claim deeds or quick claim deeds because they are a fast way to accomplish real estate transfers.
Quitclaim deed. A quitclaim deed is a legal instrument that is used to transfer interest in real property. ... This means that the granter does not guarantee that it actually owns any interest in the property at the time of the transfer, or if it does own an interest, that the title is free and clear.
Quitclaim deeds are most often used to transfer property within a family. For example, when an owner gets married and wants to add a spouse's name to the title, or when the owners divorce and one spouse's name is removed from the title.
Because quitclaim deeds expose the grantee to certain risks, they are most often used between family members and where there is no exchange of money. Due to this, quitclaim deeds typically are not used in situations where the property involved has an outstanding mortgage.
Quitclaims can be used to transfer property for a price. However, their lack of title warranty recommends them to transactions for no, or low, consideration. Real estate can only be transferred by deed, but no law prescribes the type of deed a seller must use.
A quitclaim deed, sometimes referred to as a non-warranty deed, is a document used to transfer interest in a property. ... In this context, a granter is the one transferring the interest and a grantee is the one receiving the interest. For the most part, family members use quitclaim deeds in real estate transfers.
A quitclaim deed only transfers the granter's interests in a piece of real estate. It does not create any warranties on the title. ... A warranty deed contains a guarantee that the granter has legal title and rights to the real estate. A quitclaim deed offers little to no protection to the grantee.
In most states, there is a period of two years following the deed's filing date during which the quitclaim deed can be contested. If either the granter or grantee wants to challenge the validity of the quitclaim deed, the challenge must be made during this time period.
When they're due on quitclaim deed transactions involving homeownership interest transfers, gift taxes are based on homes' fair market values. ... Also, the IRS requires that the giver of a gift pay any applicable gift taxes, not the receiver.
A quitclaim deed is also used to clear up title to property, if there is an issue with someone else possibly having an ownership right in the property, he or she can be asked to sign a quitclaim to make sure the new owner has complete title.
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