What is a Quitclaim Deed?
A quitclaim deed is a legal instrument that is used to transfer interest in real property. The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee.
- Typically used in a NON-traditional sale
- Between family
- Into a trust
Simple way to transfer deed – no title search is done. Since there is no title search done, liens, taxes, open mortgages, and loans are not checked for. The verification of the grantor also is not checked to make sure they can convey the property.
Quitclaim deeds are also used to clear up matters when there may be an ownership issue or claim. The person with claim can sign a quitclaim deed over removing themselves.
Quitclaim deeds are not used for traditional real estate sales (especially with a lender involved), because the new owner receives no guarantees about the title and how valid it is.
Although we are not lawyers and would advise anyone using a quitclaim to seek advice, we do want to put a word of warning out there. Quitclaim deeds are used often in investment property sales and scams both. People use them to transfer property they do not own, or they know has other encumbrances. Therefore, working with a proper title company or lawyer when involving real estate is a good idea. Not transferring property correctly or verifying ownership and other information can be a costly mistake. More than what it would have costed to have a title search done and having insurance you are getting a solid transfer.
To transfer title by quitclaim, a quitclaim deed form must be in writing to be valid. This legal document includes a legal description of the property that is being deeded, the county it is located in, date of transfer, and the names of the grantor (person transferring the property) and grantee (person receiving the property). If a price has been paid for the transfer, that amount is included.
The grantor signs the document, and this signature is generally notarized. Witnesses may be required depending on the state. In some states the grantee also signs the deed. It is common to file the deed with the county clerk in the county where the property is located, but in some states, this is not required.
Quitclaim deeds are a part of the real estate world. Although they are not as secure as Warranty Deeds, they are used. If you need help preparing a Quitclaim deed or have questions about them, you can contact your local title company or real estate lawyer.
If you are thinking of buying or selling real estate and would like to talk further about title company needs (Nationwide), please call Gary Brincat or Scott Fader at 248-617-0004 or email them at firstname.lastname@example.org
Scott Fader and Gary Brincat
Inked Title, LLC
Inked Title is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers of real estate with Mitten Realty Group (www.MittenRealtyGroup.com or 248-294-7850) and owners of Inked Title. They have been working in real estate as brokers, Realtors, investors, property managers and real estate and title company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.