By: Nathan Katz
A new deed is required any time you want to add or remove a name from your property title.
The term “quick claim deed” is used often by many, but, the reality is that it is not correct. To be technically accurate you should use “quitclaim deed.” The popular usage of placing a “quick” instead of “quit” originated because of the fast process of transferring ownership of real property.
The party transferring their ownership interest is known as “Grantor” and the recipient of the transfer is the “Grantee.”
Here is the interesting part of a quick or quit claim deed. The Grantor does not ever have to own the property because this type of deed releases ownership interest without any guarantee or warranty.
In other words, the Grantor makes no assurance of owning or having a vested interest in the property. Therefore, should you be involved with this type of real estate transaction, I highly recommend that you seek out a valid title company to perform a title search. This act will support or reject ownership rights of the Grantor.
However, setting that position aside, the use of a quitclaim deed can be a safe, legal instrument.
For example, you and your spouse may own a piece of property and initiated a title search at the time of purchase. Therefore, you already know the title history and whether or not the property has a clear title.
Suppose a few months or years pass and you are thinking of selling the property. The potential sale prompts you to look at the deed, and you notice that your name is not spelled correctly, or there is some other error within the document. This detail could cause trouble when you transfer ownership at the time of your sale.
Sometimes you need to transfer ownership rights from one family member to another. This instrument is usually the fastest way to add a family member or spouse to the title of a property. Another common usage is a divorce in which one spouse grants to the other their ownership rights to a property.
One caveat must be mentioned here. Do not believe anyone that tells you that you will be free of your mortgage or loan obligation if you use this type of deed transfer process.
You can NOT release your obligation for a loan by the use of the quitclaim process. Remember you were the one that signed the contract. So, keep in mind that you may transfer ownership rights to a property, meaning that you no longer own it. But, guess what?……… You are still on the hook for paying back the loan.