The Quit Claim Deed An Overview

The deed of a property refers to a legal document that establishes ownership. Available are different types of deeds. Here is an overview of a quit claim deed.

An Overview of a Quit Claim Deed

When a grantor, a person who owns an interest in the property, is essentially allowing the transfer of that property to another person, then that form of deed used in the transfer or sale of property is called quit claim deeds. The grantors simply have responsibility over the property even though they don't actually own it. Grantors may have the legal right to sell the property because of this but there is still a catch.

Little protection for buyers down the road is offered by the quit claim deed. The property will be transferred from the grantor to the grantee although the quit claim deed does not legally protect the grantee from future claims to the property. Because the grantor does not legally own the property, that will leave a back door open for potential future problems regarding the property.

Quit claim deeds are often used in a couple situations due to their relative simplicity compared to many of the other forms that have to be filed during property transfer and/or sales. First, you can use a quit claim deed to clear up a title. And two, quit claim deeds are effective for those who want to use a simplistic method for giving up their interests in a certain property.

When used in a sale of a property, quit claim deeds can result in significant risk to the buyers of the property. But other uses that are beneficial are what quit claim deeds still have. For instance, in the case where there are multiple people who have claims to a home, such as when a relative passes away, a quit claim deed is an effective way of one of these people to legally transfer their interests in the home to another person. A divorce can create a similar situation, making the quit claim deed very useful.

Being smart about which form of deed you will be signing is very important regardless if you are a seller or a buyer. Knowing what the potential risks are and the protections that are being offered by the deed is essential so that you can be better prepared.

Get ideas about how to make money with our informative guides & step by step methods that enable just about everyone to earn. Get exclusive information for entrepreneurs and others looking for work from home advice.