A quitclaim deed is a legal instrument that lets you easily and quickly transfer over the ownership of a property to someone else. With a quitclaim deed, you can basically hand over the ownership of your home without the exchange of money or the need for title insurance or a title search.
There are several reasons that you may use a quitclaim deed over another type of deed. Quicken Loans explores the three most common uses for a quitclaim deed.
Clearing a title issue
It is not uncommon for property owners to use quitclaim deeds to clear their titles of “clouds,” or defects. If you discover that the title to your property is invalid because of a claim, unreleased lien, foreclosure or another document, you can use a quitclaim deed to release yourself of your interest in the property and, essentially, clear your title.
Transferring property to a family member
One of the most widespread uses for a quitclaim deed is for transferring real estate between family members. If you want to gift a home to a child, grandchild or another family member, you can easily remove your own name from the deed or title and add the recipient’s name to create a legally binding transaction.
Removing an ex-spouse from the title
A quitclaim deed makes it easy for you to eliminate an ex-spouse’s interest in a property or home by simply removing his or her name from the document. However, bear in mind that if you use a quitclaim deed for this purpose, the title insurance company may require reassurance that your ex will not attempt to assert ownership later on. Moreover, your former spouse’s name will remain on the mortgage despite the existence of a quitclaim deed.
Quitclaim deeds offer easy and quick ways to transfer the ownership of a property. However, they do have their limitations, so you should consult with an attorney before using one to ensure it is the tool that will best enable you to fulfill your goals.