Questions about Quitclaim Deed

What is a quitclaim deed and when is it commonly used?

A quitclaim deed is a deed that is signed by a grantor transferring any rights or interest he/she may have on the property to another individual or entity. The recipient becomes the grantee. These rights or interests are usually stated in the deed but there is no guarantee that the rights are good, legal, or marketable. It only releases the grantor from any interest he/she may have. A quitclaim deed is one of the chosen or preferred means to transfer interest in property usually between family members when there are no concerns that either party involved could cheat or commit a fraud. The quitclaim deed is also useful for clearing a title or for a mere sale of interest in a property.

Can a person quitclaim his/her share of property, jointly held by common tenants, to his/her sibling?

Yes, joint tenants can use a quitclaim deed to detach themselves from the deed and transfer ownership wholly to the other joint tenants. This is a common method of transferring property that is owned in this manner. A person can also choose to quitclaim his/her share of the property to one particular holder/ tenant of the property.

In a P-1693 quitclaim deed of a divorced couple (in which husband is giving the property to his wife), do both parties sign as grantors? Can a grantee prepare a quitclaim deed which the grantor agrees to and signs? Is it enforceable by law? Does the notary have to be from the same state?

In the above case, both parties need to sign as grantors as they currently own the property. The one receiving the property is considered the grantee and only he/she will need to sign as grantee where applicable. It is immaterial who prepares the deed as long as the grantor signs it in front of a witness and the deed is notarized. Ideally the notary should be from the same state. However if a party is not present in that state, they can sign in front of a notary where they are located. After this the grantee should record the quitclaim deed with the city/county in which the property is located.

How much time does one have to record a quitclaim deed once it has been signed?

A quitclaim deed becomes a legally binding contract once it is signed and notarized. The deed need not be recorded to be binding. However it is not a valid transfer document until it is recorded with the registry of the county or city that the property is located in. However, it is sensible to not wait too long to record because until the deed is of public record, someone else can record a deed on the same property and can have priority. The grantee or the person with the vested interest will not be able to do anything with the property unless it has been recorded.

If a person signs a quitclaim deed to his/her siblings but retains his/her share of profit in case of sale of property, is it still valid? Also in case of death of one sibling, would the property go to the survivors?

This type of quitclaim deed is valid. A possible option for a person in a case like this is to enter into a quitclaim deed with their siblings and transfer their share of the property to each sibling as joint or common tenants. They can also include a right for survivorship. This will ensure that in case of sale, each gets their share and in the eventuality of death, the survivors among the common tenants receive the property and their dependents (spouse, parents or children) at that point have no right over the same.

Is the quitclaim deed considered invalid if a person quitclaims their property to another person without intimation or permission of the bank that the property is mortgaged to? Is the quitclaim deed used only for properties without mortgage burden?

The deed is not invalid but the interest on the property does get transferred. If there is a delay in mortgage payment then in some cases the bank may accelerate the loan. If the payments cannot be made, then the bank may move to foreclose. However if there is no problem with the mortgage payment, the bank may not do anything.

One can quitclaim a property with a mortgage. It is commonly used to transfer legal ownership of property. Many divorces end with a quitclaim from one party to the other.

A quitclaim deed is a simple method to transfer one’s interest in a property. It does allow a certain amount of flexibility too and provides the option to keep the property within a closed group of people. However the legal route to do so and the consequent implications often require clarification, and specific questions and concerns can be discussed and decided upon with the help of legal experts.