There are generally two types of warranty deeds, a special warranty deed, and general warranty deed. A warranty deed is important for transactions where the buyer or grantee is generally unfamiliar with the specific title history of the property. The quitclaim deed is basically the opposite of a warranty deed, which promises or “warrants” that title is clear from any encumbrance or defect. For example, it would be possible for the grantee to gain a lien on the property, or to have been given erroneous property boundary information. The grantee is receiving title to the property “as is,” and there may be encumbrances, known or unknown on that property that the grantee is receiving. Pro tip: A quitclaim deed provides the least protection for a real estate grantee. Some states, however, allow a “deed in trust” to transfer title to a living trust. Also, quitclaim deeds are often used among family members or transfers to a trust. For instance, couples commonly use a quitclaim deed in divorce to pass property to each other, as each spouse knows of any issues with the title to the property. Quitclaim deeds are usually used when there is no question about the standing of a particular title. This interest passes from grantor to grantee and includes any liens and encumbrances on the property. The quitclaim form conveys someone’s interest (the grantor) in property to another (grantee), whatever that interest is. Quitclaim deeds are documents that convey real estate to other persons or entities without any warranty of title. Quitclaim deeds are rarely used when selling property, but are useful for transferring ownership between family members or transferring ownership into a living trust. Quitclaim definition: A quitclaim deed is a legal document that lets an owner (grantor) transfer their ownership interest in a piece of property to a recipient (grantee), but offers no guarantee of ownership. In short, as time passes, the opportunity for mistakes statistically increases, as the more times a property is conveyed, the more issues it may acquire. Title issues usually include undiscovered issues with the property including, unknown second or third mortgages, property line or boundary issues based on erroneous surveys or unknown easements, and even forged public documents. And, as the world increasingly digitizes, errors can be made in transferring the physical property records to digital form. Imagine a title for a piece of property that goes back a hundred years – that is a lot of opportunity for a mistake to be made with the paperwork. The simple passage of time could make mistakes by former conveyances, or how the government keeps those conveyances, more likely. Title issues are particularly tricky, as issues may arise many years after the property was conveyed (transferred to a new owner). The type of deed used is important, most commonly because of potential title issues. This article will focus on the quitclaim deed. Each real estate deed has different benefits and consequences, and depending on the situation, a property deed may take the form of a special warranty deed, a general warranty deed, a trustee’s deed, or a quitclaim deed. There are a number of legal devices to transfer title to real estate.
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