Highly Effective Criminal Defense, Real Estate And Estate Planning
Attorney Bryan E. Cameron

Why use a quitclaim deed?

On Behalf of | Aug 27, 2021 | blog

New York residents should understand that there are different types of deeds when they’re making a real estate transaction. Examples include general warranty, special warranty and quitclaim. Quitclaim deeds are generally only used in a few circumstances, such as sales between relatives and sales when there is a cloud on the title.

What sets a quitclaim deed apart?

Real estate law can be complicated. The simplest way of explaining a quitclaim deed is to say that it transfers the property as-is, which isn’t necessarily a bad thing. The name comes from the fact that the grantor is quitting their claim to any interest in the property they’re transferring. When someone is willing to abandon their claims to ownership that way, it can actually help clear any clouds on the title to the property.

Why use a quitclaim deed?

A cloud on the title is a question about the history of the title on the property. If there’s any irregularity that can’t otherwise be explained or cleared up, the use of a quitclaim deed can make it possible to complete the sale of the property. Because of this, quitclaim deeds can be very useful. They can, in essence, help to prevent and resolve disputes.

The other situation where quitclaim deeds are commonly used is for property transfers among relatives. An example of this can be a parent granting property to a child. Sometimes, this is done via a sale. Sometimes, no money changes hands. The quitclaim deed is used in these situations because there is so much trust. The parties involved do not feel they require the protections offered by something like a special warranty deed.

When buying or selling property, there are a lot of factors to consider. One of them is the type of deed that’s being used to transfer the title. Understanding what each form of deed means, and what protections it offers, is crucial during the transaction process.