A quit claim deed is named for the action that an owner of a property takes when transferring that property to someone else. The owner “quits” his or her rights to that property and any claim on it. This is not a property sale or an inheritance, although it can seem like one. Instead, it is a legal transaction that calls for one party to grant property to another party. Once the action is complete, the person who received the property can do anything he or she desires with it. A quit claim deed often occurs within families, or between people with close personal relationships.
There is no title covenant included in a quit claim deed. This means that the person receiving the rights to and benefits of the property is not entitled to any kind of guarantee or warranty to the condition of the property. When you are the beneficiary or the grantee of a quit claim deed, you are receiving the property in whatever condition the grantor left it in. Essentially, you are getting it “as is.” The grantee also receives the goods free and clear, and no interest can accrue on it. If you wanted to give your son a piece of land in a quit claim deed, for example, you could not ask for it back in 10 years with interest, as if you had been lending him the property.
One of the most common quit claim deed occurrences is a divorce. When a husband and wife divorce, the marital assets need to be divided and one of those marital assets is the home. If the divorcing parties and their attorneys decide that one spouse will keep the house and the other spouse will relinquish all rights to in, a quit claim deed is provided to the spouse who is keep the home. This does not require the spouse keeping the home to buy it from the other party. It is transferred as part of the divorce agreement.
Quit claim deeds are also popular when people want to give property to their family members. It is easier to transfer the rights of ownership to the people you care about this way. You do not have to go through a trust or any other legal proceedings. Simply file a quit claim deed with the court, and the property has a new owner. You can also satisfy a tax liability with a quit claim deed. These tax deed sales sometimes occur at public auctions, where a property owner will put forth a quit claim deed in order to cover his or her outstanding tax debts on the property.
Unlike a property sale, a quit claim deed transfers rights from one person to another person or party. The party receiving the property accepts it as is, and does not get any warranties or guarantees with it. The most common quit claim deeds occur between family members and in cases of divorce or tax sales.
This post was written for Growing Money by Stephen K Hachey. Stephen is a licensed Tampa real estate lawyer specializing in loan modifications, short sales, foreclosure and much more. He is also the owner of his own practice, the Law Offices of Stephen Hachey, PA. This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at www.floridarealestatelawyer.org/.