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What is a Quitclaim Deed?

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.

When is a Quitclaim Deed commonly used?

It 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. This is also useful for clearing a title or for a mere sale of interest in a property.

Does it matter who prepares the quitclaim deed as long as it is notarized and does the notary have to be from the same state?

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.

Can a person quitclaim his/her share of property to a sibling?

Case Details: The property is jointly held by common tenants.

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 for transfer of 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 do both parties sign as grantors or grantees?

Case Details: The husband is giving the property to his wife.
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.

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. 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 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.

Is it valid for a person to sign a quitclaim deed to a sibling but retain his/her share of profit in case of sale of property or death?

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 used only for properties without mortgage burden?

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.

Would a quitclaim be valid if it has a mortgage and there is no intimation or permission from the mortgage bank?

The deed is not invalid but the interest on the property does get transferred. If there is a delay in mortgage payments, 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.

A quitclaim deed is a simple method to transfer one’s interest in a property. It does allow a certain amount of flexibility 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. Specific questions and concerns can be discussed and decided upon with the help of legal Experts.

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