What Is a Quick Land Deed?
A quick land deed is more commonly known as a "quit claim deed." A person transferring ownership of real property to another by deed is known as a "grantor." A person to whom real estate ownership is transferred by deed is a known as a "grantee." A quit claim deed is one in which the grantor "quits" any interest that he may have in the property, and this quitted interest is transferred to the grantee. A quick land deed is easier, less expensive and less time consuming than is transferring property by warranty deed because no title search is required. In a grant or warranty deed, the grantor not only transfers ownership of the real estate to the grantee, but the grantor warrants that he has and is transferring clear title to the grantee.
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Considerations
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A quit claim deed may be appropriate when a person creating a revocable trust (a "Settlor") is transferring real estate from himself to the trust estate. A quit claim deed may also be appropriate when one person desires to transfer real property ownership from himself (as an individual) to himself and another person as co-owners. In a divorce situation in which one spouse is awarded real estate, such as the marital home, a quit claim deed is often used for one spouse to quit his interest to the other spouse.
Warning
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A quit claim deed comes with no guarantees. By transferring ownership of real estate by quit claim deed, the grantor is simply saying that if he has any interest in the property, he is transferring that interest to the grantee. If you are purchasing real estate such as a home it would not be prudent or financially responsible to accept a quit claim deed. Rather, buyers should require the seller to prove that he is transferring good title by using a warranty deed to transfer ownership from the seller to the buyer.
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Title Searches Not Required
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A title search is prepared by an abstractor, a professional who researches records on a parcel of real property and compiles the data into a written report. The compiled data will include transfers, judgments, mortgages, liens and other recordable information concerning a specific parcel of land. Title searches can be time-consuming and costly. Title searches are not necessary nor are they commonly used when real property is being transferred by quit claim deed. The purpose of a title search is to show whether there is clear title to real estate. Since a quit claim deed does not warrant clear title, no title search is required.
Title Insurance Issues
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It is sometimes difficult and more costly to purchase title insurance when a property has a history of ownership transfers by quit claim deed. Some title companies may even refuse to issue a title insurance policy under these circumstances. If you do not need title insurance, this may not be a consideration. For example, if you are transferring ownership of property you own as an individual to a revocable trust, there is no need for title insurance (especially if you received title by warranty deed) and a quit claim deed would be sufficient. In contrast, if you are buying a commercial building or a home, title insurance is a must to protect your investment.
Get Legal Advice
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A person having specific questions concerning real estate, financial, tax or legal issues should consult with an attorney, real estate professional as well as other professionals to discuss the specifics of their situation.
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References
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