I Quit, I give you all my interest in this property and maybe just maybe a few problems, so lets make a deal!
Quitclaim Deed, is just that, it’s a deed a seller gives a buyer when the seller is quitting his interest in the property and giving it to the buyer in the form of a deed, a quitclaim deed. To name a few examples these types of deeds are most often used in a tax sale, to pass property between family members or from one spouse to another in a divorce settlement? The Seller says Uncle, I give up, I Quit, and it’s yours now!
Now the buyer has any and all of the seller’s interest in the property at the time of the transfer. Well let’s hope this seller really owned the property, even that’s not guaranteed in this type of deed. In fact nothing is guaranteed or warrantied.
So the seller deeds the buyer his interest in the property, does anyone else have an interest in the property, are there any liens or judgments against this property, and is there a spouse or sibling who has a legal claim out there somewhere?
It’s like doing business on a handshake, that’s all and good if a future problem doesn’t appear on your doorstep. As a buyer are you willing to take that kind of a gamble on a real estate purchase?
Do your homework and most importantly hire a real estate lawyer and obtain title insurance before you sign a quitclaim deed; remember in the end it’s up to you to protect your interest in the property you’re buying.
We live in a very uncertain world, however if we follow the obvious steps required for a smooth transaction we can avoid Murphy’s Law, “whatever can happen will happen.”
Oh and for those of you who have been wondering if the Quitclaim Deed is also referred to, in error, as a Quick Claim Deed, the answer is yes!