Is quit claim deed the right way to transfer property-interest?
Quit claim deed is no doubt a good option but at the same time it has some limitations and therefore it is necessary to have a basic idea of the deed along with the limitations during the purchase of a real estate property.
By Lance Williams [website] from CA, USA on January 25, 2006 in Real Estate
A quit claim deed is a deed that is widely used to transfer the interest in the property that a person may have without representing that the person has a right to the title in that property. The deed is often used to remove defects in the title to the property. Generally, the deed is utilized to transfer rights from one person to another within the family and more commonly in divorce cases.
Through the quit claim deed, when a grantor transfers his share of the property title to the grantee, the latter becomes financially responsible for the property. He needs to pay the annual property tax, homeownersę insurance premium along with the costs required for maintaining the property. A quit claim deed however does not guarantee that there is no other person having an interest in the same property.
Quit claim deed is no doubt a good option but at the same time it has some limitations and therefore it is necessary to have a basic idea of the deed along with the limitations during the purchase of a real estate property. Many people have misconceptions about the deed. It is a general conception that with the transfer of the interest, the mortgage on the title gets transferred to the other person. But this is not the fact. The person, who has signed the promissory note in mortgage and is solely responsible for the mortgage repayment,. So, in case he wishes to get rid off the mortgage, he should refinance the mortgage with the new owner taking the responsibility of paying off the loan after the present owner has repaid the existing mortgage.
There may also be problems concerning the title search of the property. Sometimes, it is seen that a previous owner has never given up his title of ownership and he needs to be contacted again to sign the deed. This is a defect to this deed. Therefore, it is necessary to notarize the deed and get it recorded with the county recorder in order to make it more authentic.
In case you are planning to file bankruptcy and prior to that, you sign a quit claim deed then the bankruptcy court may consider it as a fraudulent act. As a result, you may not get a discharge from your debts through bankruptcy.
In spite of all the limitations, quit claim deed is quite useful in dissolving co-ownership as it is less time consuming and involves low cost. Different states have different laws on quit claim deed and it is always better to be aware of the related laws while signing or accepting the deed. An attorney should be consulted always before going for the deed so that discrepancies in the future can be avoided.
About the Author: Lance Williams is helping the mortgage community with his knowledge in the industry.
deed to property
if someone still has the mortgage on property can they still quit deed someone property if in there loan contact states that they can knot switch the title.
By erik from portland oregon on March 21, 2006 | Reply |
Joint Tenants in Common
If you sign a quit claim deed and the other owner (only 2 owners involved) expires, and if on the document signed and notorized by the lawyer states "joint tenants" and not "tenants in common"does this mean you are the sole owner and it would not have any attachment to the will or the estate of the party that expired.
By Lisa Tkachuk from Canada on April 12, 2006 | Reply |
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