Do It Yourself Quit Claim Forms
If you are in a position where you want to transfer property to another party, in most cases it is between family members, a quit claim form is your solution. Most of the time a quit claim is used when an owner get married and wants to add a spouse’s name to the title or deed. If a divorce is happening, one of the spouse’s names are removed from the title.
A quit claim form is a document that is used to transfer ownership of real property from one party to another without being sold. Used mainly to transfer property between family members or friends. There is no money transacted, no ownership title search is done and no title insurance is issued.
What Is A Quit Claim Deed?
A quit claim form is a legal document and a way to transfer title to a property to another party while not making any type of guarantee or warranty about the title or nature of your interest in the property.
If you are selling or transferring property, you will need a quit claim. A quit claim states that the seller(grantor) no longer has a claim to a property. The grantor transfers to the buyer(grantee) all of the legal or equitable rights the grantor has in the property that existed at the time of the conveyance. This instrument transfers property ownership rights without any warranties and does not end an obligation to re-pay any balance.
A warranty deed guarantees the grantor has clear title to a property that is being transferred to a grantee without encumbrances except for any that are recorded and that the grantee will have possession of the property following the transfer.
Benefits Of A Quit Claim Form
There is no money in the transaction between friends or family members. The transaction is considered a gift. In real estate transactions where money changes hands, there would be a tax paid for the transfer of the property.
Are There Disadvantages To Signing A Quit Claim Form
The grantee who obtains a piece of property with a quit claim deed can be at a disadvantage if it comes up that the grantor has no title of any kind on the property. The grantee cannot sue the grantor.
What Happens When You Sign A Quit Claim Form?
The grantor provides the property to the grantee with no warranties about the condition of the title. Quitclaim deeds are not used for real estate sales. When you sign a quit claim form, you have turned over every claim you might have to an ownership interest to someone else without making any promises about that interest.
When Will You Use A Quit Claim?
You will use a quit claim form to transfer property ownership rights in the event of many circumstances such as divorce, estate planning or selling real property. Quit claims are usually executed between people that already know each other but not always.
In divorce situations, when real estate is involved and one person is going to keep the property, the other person will need to quit claim or give up their portion to the other person.
If you prepare a living trust or some other estate planning tool other than a Will, you will need to transfer ownership of the real property into the trust with a quitclaim deed.
After the forms have been finalized and to make the transfer of property valid, the grantee must file the quit claim with the recorders office or real estate office in the county of his state where the property is located.
Can A Quitclaim Deed Be Undone?
After a quit claim has been filed, The only way a quit claim can be undone is if the grantor can prove in court, he was forced to sign the form under duress.
Do You Own The Property With A Quit Claim?
A quitclaim deed transfers the type of title you own. No change on the mortgage occurs, only the ownership stated by the deed transfer. A quit claim is not a mortgage. It only states a person’s interest in a property to be transferred to someone else.
Can A Quit Claim Affect Your Credit?
It depends on your interest in the property. If you are making payments such as the mortgage and you are late, and the original owner is collecting these payments, then the original owner could negatively affect your credit.
How Is a Mortgage Affected After A Quit Claim Deed
You would later not have any interest in the property, but you would still be responsible for the mortgage after a quit claim until the recipient refinances. A quit claim does not affect the mortgage.
Can A Quit Claim Avoid Probate?
By transferring interest on a property before death, probate can be avoided. Otherwise, the property would have to be transferred in a will after death.
Is Refinancing Required With A Quit Claim?
You can file a quit claim without refinancing the mortgage. You are still responsible for the mortgage. With lender approval, you can transfer the mortgage without refinancing.
How Are Liens Handled When Issuing A Quit Claim?
All liens on the property will remain after a quit claim. The person issuing the quit claim is still responsible for the liens and paying them off.
A Quitclaim Does Not Release Debts
Signing a quitclaim deed mortgage only removes you from the title, not the mortgage or any liens, you are still responsible for making payments or any financial obligations you may still have in the property.
Quit Claim Form In A Divorce
In a divorce or legal separation, one partner is given sole ownership of the property. This partner can sell or mortgage the property without any approval from the other partner and they can also put the property in a will to anyone they choose. A quit claim does not necessarily have to be signed as the divorce settlement agreement will contain the details of the property settlement.
The Difference Between A Quit Claim Form And Warranty Deed
A quitclaim deed mortgage only transfers the grantor’s interests in a piece of real estate. A warranty deed contains a guarantee that the grantor has legal title and rights to the real estate.
