9 Most Effective Ways to Use A Quit Claim Deed to Handle Common Personal and Business Transactions.
Individuals, Business, and Trusts use Quit Claim Deeds to convey their interest whatever that may be to another person, business or trust. Quit Claim Deeds can be used to avoid litigation and quickly resolve title issues, when there is an error in the chain of title. The Quit Claim deed essentially operates as a safety precaution for the Grantee in that, the Grantor is prevented from later claiming an interest in the property conveyed. However, the Quit Claim deed does not guarantee the Grantee anything.
We will discuss some everyday uses in this article, but first it is important to understand the difference between Quit Claim Deed and Warranty Deed. Not only is there a difference in language, like the use of the words “Bargain, sale…” in a Warranty deed; or “Release and Quit Claim” in a Quit Claim Deed.
It is also important to note a Quit Claim Deed does not require Title Insurance, and makes no warranties or guarantees about the property. A Warranty Deed is relied on when there are more professionals involved in the transactions and a title search is conducted to ensure the title is good and free from liens.
A Florida Quit Claim Deed requires the following key information to be valid:
Name of Grantor
Name of Grantee
Property Description
Two Witness Signatures
Notary Public Signature
Grantors Signature
Consideration
Once a deed is completed according to the state guidelines, the deed must be recorded according to County Recording Requirements. Please note: it is not required that a Grantee sign a deed to legally accept possession in Florida.
Ok, the big question.................When can a Quit Claim Deed be used?
Divorce
For example, a couple married in Florida own their homestead property together. Once they divorce, whomever keeps the home will need a new title. The married couple deed their home to the party that keeps the home as their sole property. In other words, if the wife keeps the home for the children to grow up in, both the husband and wife will deed the property via quit claim deed to the wife as her sole property. Timeshare Transfers
A quit claim deed is often used to transfer a timeshare between owners. For example an owner transfers an annual 2 bedroom 2 bath condo located in Florida via Quit Claim Deed to a new buyer or family member. Deed-back or Deed Surrender
A Deed Surrender may occur often in the timeshare industry or industries involving Homeowners Associations. I've worked with timeshare resorts to assist owners facing serious hardships to surrender their ownership to the resort when the fees were out of control. During this process the owners sign a quit claim deed to the resort for their timeshare interest. This often times relieves the owner of liability, however not in all cases so an attorney should definitely be consulted. Living Trust
A quit claim deed can be used to deed property into a living trust. An example is when a property owner decides to put all their property in a living trust for either their benefit or someone else's. The property's would be deeded from the property owner as Grantor to the legal name of the living trust.
For More Information about Living Trusts, Power of Attorney Documents & Estate Planning Click Here. Disclaim Interest
In the event a decedent passes away and leaves a home to will beneficiaries and they do not want the property, they can quit claim your interest away. Depending on the state a different type of disclaimer may be required. It is best to consult an attorney to discuss. Clean Title
Our office has seen a number of failed property sales. Sometimes a deed is already recorded when a party gets buyers remorse. Believe it or not, all of these matters do not end up in court. Think about situations where you buy a home and there is a serious defect in the home. Yes you could go through the courts but another option is addressing the matter with the previous owner. In the event they want to avoid litigation, they may agree to accept the property back. It would make sense to use a quit claim deed to deed your interest back to the seller and clear title. Gifts via Quit Claim Deed
Often times a gift whether from a decedents will, living trust or person will require a quit claim deed. A quit claim deed will transfer the gifted property from the estate, trust or person to the grantee.
For More Information About Gifting Property In a Will, Click Here. Change Of Tenancy
This occurs when property is owned one way, and you desire it to be owned differently. In Florida property is owned as joint tenants by the entirety, joint tenants, tenants in common or sole property. Married couples own property as joint tenants by entirety, which means that in the event of one of their deaths the property will automatically be owned by the surviving spouse. Joint tenants are similar but do not require marriage. Tenants in common is similar to joint tenants but each party owns a certain amount of the property and can will it to their descendants or sell their interest transferring via quit claim deed.
Tax Deed Sale
Most county tax deed sales furnish the buyer with a quit claim deed, warranting nothing for the new buyer.
For More Information about using a Quit Claim Deed in Florida or New Jersey, click here.
Frequently Asked Questions about Quit Claim Deeds
1. How much consideration is required for a QC deed?
Generally consideration does not pass when using a Quit Claim Deed to complete a transaction. Most deeds show reflect a price of $10.00, however in Florida $1.00 may be considered sufficient as consideration.
2. Can a Quit Claim Deed be revoked or reversed?
Generally, the transfer is complete upon the grantor executing, delivering and recording the Deed in the county public records office where the property is located. A Grantee may agree to Quit Claim the property back to the Grantor, however there is no requirement. Therefore, a clouded title may arise and lead to litigation to quiet title.
3. Can a Quit Claim Deed remove a spouse from the mortgage after a divorce?
Generally no! You should contact your mortgage servicer for the procedures to remove a spouse from liability with regards to a mortgage, even if your divorce has been finalized.
4. Should I use a Quit Claim Deed to add my children to the title for my home?
In short, you can use a Quit Claim deed to add your children to your home title; however the use depends on timing and the individual circumstances surrounding your home. For example, if your home is still financed this may not be possible; however in the event that it is this simple technique may help avoid probate issues.
For More Information about Florida Probate, click here.
5. Can I use a Quit Claim Deed to sell my home?
Yes, but it is rare that a buyer would purchase a home via Quit Claim Deed. A homebuyer generally wants to know the home is free and clear of any liens on the title, and they are protected by the warranties that accompany a Warranty Deed. A quit claim deed may be permissible in an arms-length transaction. For example, in a transaction between siblings, however if any financing is involved, the mortgage servicer will often require a title search.
Click here, for more information on using a Quit Claim Deed in a Real Estate Transaction.
If you have more questions about using a Quit Claim Deed in Florida or New Jersey, click here to schedule a Virtual Office Visit.
