The Definition of a Quick Claim
Many people misidentify a "quitclaim" deed as a "quick claim" deed. While the process involved is indeed quick, the proper name for the deed is "quitclaim."
A quitclaim deed is an instrument of conveyance that transfers real property interest, claim or title. It provides the least amount of protection of all types of deeds because the grantor does not provide a warranty of good title. The quitclaim deed simply conveys the present interest that the grantor has but does not guarantee the clear title actually exists. Thus, the conveyed title may include tax, mortgage or mechanics liens. Also, it does not guarantee against another person, such as a previous owner or heir, having claim to the real property. Quitclaim deeds are easy to process and have a low cost.
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Types of Deeds
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The most commonly used deed is a general warranty deed, which transfers property with the greatest amount of protection for the purchaser. With a warranty deed, the grantor guarantees the title is free of defects, such as liens and claims of ownership. The purchaser may recover damages if a "cloud" or defect in the title is discovered.
A second type is a special warranty deed, which provides fewer warranties as compared to a general warranty deed. The grantor limits his liability to the time in which he had ownership of the property and not for any defects to the title that occurred before.
A grantor of a quitclaim deed makes no guarantees as to the quality of the title being conveyed. In most states, the seller has no liability to the buyer for claims on the property.
Function
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A quitclaim deed can remove a former spouse from a title. Quitclaim deeds are often used to transfer real estate when little question exists about ownership. Thus, family members or divorced couples who desire to transfer real estate interest to another family member, or the former spouse, often use a quitclaim deed.
A quitclaim deed also may be used to extinguish an easement or to clear a defect, such as in the chain of the title to the property. For example, a distant, potential heir to the land may be asked to sign a quitclaim deed to release any interest he may have.
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Features
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To be valid, a quitclaim deed must be in writing and include several key elements in the documentation. Numerous one-page quitclaim forms are available online for a small fee, or one may be obtained from an attorney. In general, elements of a quitclaim deed include a named grantor and grantee, recital of consideration, words of conveyance, legal description of real estate and the grantor's signature. (The grantee's signature is not required.)
Process
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A completed quitclaim deed must be notarized. Once completed, a written quitclaim document must be notarized. Recording the document with the county recorder's office is recommended in case the paper deed is lost or destroyed. Recording the deed also prevents another party from recording a subsequent interest. Recording is a simple process. The recording fees may be calculated based on the stated amount of consideration.
Misconceptions
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It should be noted that a quitclaim deed grantor is still liable for and obligated to pay mortgage payments on a loan secured by the property conveyed.
Liability of a grantor involved in a quitclaim deed may differ from state to state, with information available in an area's laws.
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References
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