As I explained earlier in the introduction, a Quitclaim deed form is a formal document that states that an individual or a business giving up their interest in real property. The characteristics of this action are offering a little protection to the person receives the interest. So, it is recommended and often used among family members who have already established trust.
When an individual sign the form, it means that he/she didn’t have any ownership right and responsibility on the property anymore. The grantor (a person who gives up the interest) may not be written as the owner anymore, but they may be transferring their assumed interest such as the form show that they have no interest in their spouse property.
Remember, that transferring property using claim deed form may be taxable. If a person receiving the property they have to pay a gift tax and if the properties are sold, the grantee is responsible for tax payments related to property sales. Transferring a real estate are non-taxable when the properties are transferred between spouses.
Actually, there are many kinds of Deed forms. A Quitclaim is one type of this form. So, it is not suitable for every purpose. So, this is not recommended for you to using this form if you didn’t know all the parties involved because it offers limited protection for the buyer or “grantee”.
The Limitation of Deed form
Before you decide to quit your real estate, the first step you should do is knowing what is the limitation for using this form.
The grantor may not have an ownership title anymore. So there may be aliens or other interest in the property as well.
In a typical real estate purchase transaction, title insurance is often required by mortgage lenders. In this situation, you are not allowed to use this form anymore because it has another purpose. So you have to use another form of a deed, called a general warranty deed.
Cannot change a mortgage
When a spouse signs the form together, both name still is on the mortgage and still be liable for the debt.
The deed form also can’t supersede a will. It means that even a person could sign the quit claim deed form to show that they don’t have interest in a property, they don’t allow to give up the property if property distributed to them from the directions of a will.
Community property laws may replace the form
In some country, a court can decide that the grantor (a person who gives up the property) may be under duress or unfair. So the document may not be enforced.
It varies by state, but some country will only honor the quitclaim deed for a certain time.
That’s all the information and some limitation for making a quit claim deed. So you have to think clearly to avoid unwanted risk even you are as the grantor or the grantee. You need to search for the possible risk for both parties. And the important part is you need to check your document before applying a statute of limitations.