How does a Quit Claim Deed work?
A quit claim deed is one of the simplest methods in transferring real estate from the grantor to a grantee with no warranty of title. It is used by the owner of the real estate to quickly transfer ownership and gets recorded with the county that the property resides in. Quit claim deeds are often used between spouses or other family members because it is a fast way to execute a property transfer. A quit claim deed compared to a general or statutory warranty deed offers the property “as-is,” meaning the title is free and clear of restrictions or liens.
If there is no money involved and both parties have a mutual trust and understanding, a quit claim deed is typically the quickest option. For example, it may be used if your parents want to transfer their real estate to you, or a family member decides to divide up a portion of their estate. Another time a quit claim deed may be used is when an owner gets married, and the spouse’s name needs to be added to the title or be taken off title in the case of a divorce. Keep in mind, filing a quit claim deed does not remove your ex-spouses name because in order to do that, you’ll need to refinance the mortgage.
If there is an unreleased lien or claim on the property, the property title may seem invalid, which is when a quit claim deed can be initiated. In this case, the interest in the property will be released so the title can be cleared. A cloud on a title can include a foreclosed property where the owner defaulted on their mortgage. Documents can be lost over time which can raise questions about who legally owns the property. If the previous owner signs a quit claim deed, it can ensure the new owner has complete title and avoid these types of questions.
A quit claim deed can be an effective way to transfer property, remove a name or fix the current title. You’ll want to ensure that the right steps are taken to prevent misunderstandings in the future. If you need assistance in taking the right steps, give us a call or text today. You can reach us at (206) 408-8158 or visit us online for more information at www.dallawfirm.com.
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Normandy Park, WA 98148
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