quitclaim deed Archives - Page 3 of 3

February 7, 2019April 25, 2024

The Quitclaim Deed’s Function in a Contract for Deed Sale

A contract for deed sale can present a convenient alternative to the traditional real estate conveyance. In this owner-financed deal, the buyer usually lives on the property upon the execution of the contract. While enjoying the property, the buyer pays for it in monthly installments, until the agreed-upon price has been paid in full.

Down the road, when full payment is complete, the purchaser formally acquires the title deed. This event occurs through a warranty deed, which guarantees that the seller is the sole party with any claim on the property to be conveyed – no exceptions, unless stated on the deed.

If things don’t go as planned, and the buyer defaults, recovery of the property can be a time-consuming process. Defaults happen, so a seller should consider having the buyer sign a quitclaim deed as part of the execution of the contract. A quitclaim is a non-warranty deed. It conveys property with no warranty for the title. Through this document, if it becomes needed, the buyer will relinquish any claim on the property.

Here, we look at how the contract for deed sale works, and briefly examine the function of the quitclaim deed.

December 5, 2018April 25, 2024

What is a Quitclaim Deed?

There are various ways to transfer a real estate title, and among the simplest is a quitclaim deed. The person is literally quitting their claim to the property. Just because it’s the simplest method does not mean it’s the best, however, especially if you are the recipient of the property. That’s because the quitclaim deed does not guarantee that the grantor – the person transferring the property – actually owns the real estate in question. The grantee, or person receiving the property, not only could end up with a worthless deed, but cannot sue the grantor if it turns out that individual did not own the property or owned only a percentage of the land or buildings. However, if fraud is involved, it is possible to sue the grantor on those grounds. That does not mean you should always avoid quitclaim deeds, but it does mean you should do your research.

October 5, 2015May 14, 2024

What is a Special Warranty Deed?

If you’re like most people planning to make a real estate purchase, you want to know that the property you’re purchasing is actually owned by the seller, that it’s in reasonably good shape, and that the title is free of defects. Real estate transactions aren’t always as seamless or clean as buyers might like, though. A special warranty deed—sometimes referred to as a limited warranty deed—warrants only against defects during the seller’s time as property owner. It will not protect against title issues that arose prior to the time the seller took occupancy. Consequently, it offers less protection to buyers, and more protection to sellers, than a general warranty deed, which is the most common option for selling or buying a property.

May 13, 2014April 25, 2024

Quitclaim Deeds after Divorce or Dissolution: Navigating the Property Transfer

Quitclaim deeds serve as a versatile tool in real estate transactions, transferring a current owner’s interest, if any, to a new owner. Such transfers might or might not involve consideration—often monetary value. These deeds are particularly useful for clarifying ambiguous titles, resolving boundary disputes, or gifting property, yet they do not guarantee the title’s validity to the recipient.

In the context of a divorce or dissolution, quitclaim deeds take on a specialized role. Property division in these instances is typically overseen by a judge, who may order one party to relinquish their rights in jointly-owned real estate to their former partner. When quitclaim deeds are used in divorce proceedings, they often necessitate extra details. Many jurisdictions, for example, require an explicit reference to the divorce within the document, including the docket or civil action number, along with the recording specifics of the related legal judgment.

October 14, 2013April 27, 2024

An Unrecorded Quitclaim Deed Can Still Be Valid

An unrecorded quitclaim deed is still valid. While there is no time limit on recording a deed or recording required for a quitclaim deed to be valid, record all deeds as soon after the transaction as possible. Failure to record a deed could render transfer or mortgaging of the property impossible and create numerous legal difficulties.

September 6, 2013April 25, 2024

Using a Quitclaim Deed in Missouri to Create a Joint Estate

In Missouri, the creation of a joint estate in real property can be facilitated through the use of a quitclaim deed, as outlined in Section 442.025 of the Missouri state law. This legal instrument is often employed for its simplicity and efficiency in transferring ownership interests without warranty.

October 26, 2012April 27, 2024

Adding a Person to a Deed Using a Quitclaim Deed

One of the most common incorrect assumptions in real estate is that someone can be added to a deed. If one person owns a piece of real estate and wants to bring on another owner, this means that the current owner would give up their interest in the property to themselves and the other person. Both people would acquire their interest in the property at the same time in the chain of title. The chain of title in real estate has been established so that an interest in real estate cannot be valued by the amount of time an owner has been in possession of the real estate.