Deeds are legal instruments used to transfer real estate, and almost everyone will encounter a deed of some sort at one time or another. The difference between each type of deed has to do with the types of warranties the grantor the party selling or otherwise transferring ownership of the property is making to the grantee the person buying or otherwise receiving ownership of the property.
With the other two types of deeds, the grantee is receiving certain warranties when he or she receives ownership of the property. Usually, these warranties include the promise that the grantor has proper ownership and the right to sell the property, as well as the warranty that the grantor will defend the grantee against adverse claims to ownership from other parties that may arise.
However, the grantee of a quit claim deed receives no such assurances. The deed simply transfers ownership without making any warranties. When a quitclaim deed results from a court order, the judge normally also includes instructions for refinancing the property and handling all outstanding debts. For the person who is signing the quitclaim deed, it is a way of making sure he is no longer responsible for those debts.
By Cindy Quarters Updated November 20, All it does is transfer whatever interest the grantor has in the property over to the other person. There is no guarantee against the fact that the other owners have the ability to claim the property. Being that a quitclaim deed looks to simplify the real estate transfer process, there are a plethora of different circumstances in which you can utilize one.
It is important to note that a quitclaim deed has no effect on a mortgage. Even if the grantor assumes the grantee will take over mortgage payments, the grantor has no legal recourse if the grantee stops making payments. If you need to transfer a mortgage and you feel that a quitclaim loan is the best deed option, create a legal agreement stating that the grantee will take over the payments.
Because of the lack of warranty, you should usually only use a quitclaim deed with someone you know and trust, like family members. For example, a parent who is moving to a retirement community may quitclaim his or her house to a child. This way the child gets the rights to the property. Presumably, the child already understands the condition of the house.
More Info. Description In-depth research of ownership, minerals, liens and easements in Texas and New Mexico. Description Learn how we can help you get more value out of data. Posted by CourthouseDirect. Does the Grantor Have a Mortgage? Mortgaging Options After Property Transfer There is a way for grantees to increase their legal safety despite the lack of protection from a quitclaim deed. How to Qualify for Mortgage Responsibility The safest way to handle a mortgage during a quitclaim deed property transfer is for the grantee to assume responsibility for the mortgage or refinance the property.
Other Types of Deeds for Better Protection If the lack of protection in a quitclaim deed worries you in terms of mortgage payments, consider filing a different type of deed. By CourthouseDirect. Subscribe to our updates. Categories Courthouse Documents 75 CourthouseDirect. About CourthouseDirect. Contact Info. Site Map. Partner Sites.
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