What Is the Purpose of a Quit Claim?
A quit claim deed is a quick, simple way to transfer real property from one person to another. A small amount of money is usually transferred to make the transaction legal, but that amount can be as small as one dollar. Quit claim deeds are most often used during a divorce to transfer property to one spouse or another.
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When to Use a Quit Claim
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A quit claim is most often used in instances of marriage and divorce. When a couple marries, a homeowner may file a quit claim to quickly and easily add the new spouse to the deed. During a divorce a couple may choose to quit claim property to one spouse or another. An aging parent may add a child to a property deed via quit claim. A quit claim option is generally used within families when transferring real property from one person to another, with little or no monetary transfer.
Quit Claim and Life Estates
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Aging parents may opt to quit claim their home to a child or children, then remain in the home until their death. This option is called a life estate. A quit claim option with a life estate allows an aging or ill parent to live out his or her life in comfortable, familiar surroundings, and for an easy transfer of property to a child or children after the parent's death. This option also protects the inheriting child or children from paying exorbitant inheritance taxes on the property.
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Reversing a Quit Claim
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A quit claim deed can be reversed, but only if the new owner of the property agrees to quit claim it back to the original owner, or if the original owner can prove in a court of law that the quit claim for the property was signed under duress. A quit claim is a binding legal order that cannot be undone simply because one party or another changes his or her mind.
Making a Quit Claim Binding
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There are several steps to complete to insure a quit claim is binding; the first being that the names of both the grantor, or original owner of the property, and the grantee, the name of the person the property is being quit claimed to, be stated on the quit claim document. The legal description of the property must be noted on the quit claim. This is not the property's address, but the description of it, as found on the original deed or county tax papers for the property. Some counties require that a nominal amount of money be exchanged for the property, sometimes as little as one dollar. This amount must also be stated on the quit claim document. The document must be signed by the grantor, and several states require that the signature be documented by a Notary Public. Check with your state regarding this requirement.
Filing a Quit Claim
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You can file a quit claim deed on your own or may opt for hiring an attorney to file for you. Most county offices have copies of quit claim forms at low or no cost, or forms are readily available on the Internet. There is generally a nominal fee charged by the county in which you are filing to register your quit claim.
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References
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