What Is a Quitclaim Deed?
A quitclaim deed (spelled as one word) is a document in which a person, called the “grantor,” gives over his or her financial interest in a piece of property or real estate to another person, known as the “grantee.”
As the grantor, a quitclaim deed does not imply you actually have any rights to the property; only that you are giving up any past or future interest in it to the grantee. Also, a quitclaim deed does not free you from existing financial obligations to the property, such as unpaid debts, nor will it remove your name from a loan or mortgage.
When Is a Quitclaim Deed Used?
A quitclaim deed is similar to an inter-spousal transfer deed and is frequently used during divorce proceedings to separate property, such as a house, that is either jointly owned or that both the husband and wife have an interest in. Quitclaim deeds are also used to transfer gifts to family members, to help establish a living trust, or to make real property part of a business. In the case of divorce, a husband and wife may have joint ownership of a home, but frequently only one spouse will keep the property as a result of the proceedings.
So, if a husband takes possession of a home he once shared with his wife, then his wife will execute a quitclaim deed that grants her husband full rights to the property. If her former husband decides to sell the house a few months later, she would not be able to make a claim for any of the money he gains from the sale. However, although the house will no longer be hers, her name may still be on the home loan, in which case she would be held liable if her ex-husband stopped making payments or defaulted on the mortgage.
The Document People Can Prepare Your Quitclaim Deed for You
No matter the reason you may need a quitclaim deed; we can prepare yours.
We will also walk you through all the necessary documentation, such as a Preliminary Change of Ownership Report and, if applicable, a Parent to Child Exemption. As part of our complete package, we will also notarize your deed and properly submit it to the County Recorder, all for a simple flat fee.
If you’re ready for us to help you get started, please contact us for pricing and additional information.
Preparation and filing of quitclaim deeds is where we truly shine!
Here is a list of what you’ll get included in our fee:
Refinancing and transfer deeds
While transferring a property into a trust is a pretty self-explanatory affair, you might wonder why people take properties out of the trust; after all we have been told over and over that that real estate properties should be transferred to a living trust for estate planning purposes.
Well, lately a lot of people have been taking advantage of record low interest rates and refinancing.
Mortgage companies typically won’t start your paperwork unless you show proof that you are holding title as an individual (or married couple), rather than trustee of a trust; this is because the mortgage is held in the individual’s name, not the trust’s name, so the property must be transferred back to the individual to carry out the refinance.