When do you use a quitclaim deed?
Well, primarily, you use quitclaim deeds to clear up any questionable title issues, when it comes to real estate. The quitclaim deed says that I convey to you whatever interest I may have in the property. Whether you’re not saying that you own anything, or if you do own anything, you’re conveying it to the other party. This is contrasted or different than a warranty deed, and as with warranties, you’re saying, “I’m conveying to you good title to this property.”
So, usually, the quitclaim deeds are used whenever you simply wanna clear up title, or someone is gifting you something, and they don’t know if there’s any liens on it, or just what interest they have on the property. But they’re willing to give you their interest in the property, and many times there’s no consideration for. I caution you, though, if you’re purchasing property, or paying somebody for property, I would not suggest you agree to take a quitclaim deed.
In any real estate transaction, I suggest that you have a contract, and have a title search done on the property, so that you don’t get taken. So you don’t wind up with a piece of property that the person did not own, or that there may be a lot of mortgages on the property. And that way, you can have the title checked out, and it’s not all that expensive to do, particularly with your spending thousands to spend hundreds to determine whether or not there are any liens on the property, and exactly what you’re getting.
So, a quitclaim deed is basically the conveyance of property of any interest in property that a person may have, and they’re saying, “I’m not saying I own any interest in the property, but if I do have an interest in the property, I’m conveying it to you.” The deed does have to be signed in the presence of two different witnesses, and acknowledged by notary public to be effective. And documentary stamps need to be placed on the quitclaim deed for the amount of the consideration. Or if there’s a mortgage on the property, you need to put documentary stamps on’em, also, based upon the amount of the mortgage.
If you have any questions about a real estate transaction, the use of a quitclaim deed, give me a call at 727-847-2288.