When to Use a Quitclaim Deed in NYC
Are you looking to transfer ownership of a property quickly and relatively easily, whether it’s an inheritance or get rid of quickly A quitclaim deed may be the answer for you. But it may not be the best, or only, option for you to consider. Fill out the form on your local attorney website to discuss if a quitclaim deed is right for you.
What is a quitclaim deed?
A quitclaim deed is a document detailing release of a person’s interest in a property. But it doesn’t detail or insure the person’s interest or rights to a property. It also makes no assertions as to the validity of a person’s past interest in a property. It merely states they release any interest in a property if they had any. However it does serve as a barrier against any future claims of interest the person has in the given property. They are also sometimes referred to as a quit deed or quick claim deeds as they are a fast way to transfer property from one holder to another. No title search or title insurance is involved. They are not used in real estate transactions because there’s no guarantee about the title or its validity.
Why use a quitclaim deed?
What are some circumstances where a quitclaim deed may come in handy? There are several reasons to use a quitclaim deed:
- Quitclaim deeds are usually used for property transfers in transactions other than traditional sales, like a family member transferring a piece of property to another family member.
- They can be used to add or remove spouses to a property’s title.
- They can be used to clarify inheritance of a property or transfer to or from a trust.
- They can be used to clean up a property title if there’s a question of who all may have interest in a property.
It’s important to note that a quitclaim deed only impacts the property ownership and name on a property deed or title. It has no impact whatsoever on any existing mortgages on a property.
Transferring Title With a Deed
Quitclaim deeds must be documented to be valid. Names of the grantor and grantee, date of transfer, location are written on a quitclaim deed form. The document is signed. Any prices for the transfer are also noted on the quitclaim deed. The document is signed and notarized, and witnesses where legally required. It is then filed with the appropriate local agency where required, as some states do not require quitclaim deeds to be filed in the counties where the property is located.
Warranty Deed Versus Quitclaim Deed
There are two types of deeds when it comes to transferring property ownership: warranty deeds and quitclaim deeds. Warranty deeds offer more protection in property transfers. It “warranties” or states that the previous owner is the true owner and has rights to transfer ownership to whom they choose. It also guarantees that there are no liens against the property by the IRS, lender, or any other creditor that may keep a new owner from claiming the property. They involve title insurance which financially backs up the warranty deed after a title search is doen to verify any lack of existing liens against the property.
Quitclaim deeds offer the least amount of protection in a property transfer. That’s because they offer no guarantees on the validity of ownership. That’s why it’s sometimes also referred to as a non-warranty deed. It’s also a good idea to accept a quitclaim deed from someone you know and trust.
Creating a Quitclaim Deed
There are several ways to go about creating a quitclaim deed. There are several forms and templates available on the internet with areas to fill in the relevant details. Quitclaim deeds can also be created from scratch, but that’s where an attorney may be recommended to draw up the quitclaim deed. It must be signed by teh grantor, and in soem states both parties are required to sign. Once the quitclaim deed is finished, you’ll need to register it with your local county clerk or registrar. It’s also recommended prior to completion to check with your local county agency to make sure you properly followed rules and regulations.
Should You Talk With Professionals?
Quitclaim deeds can be complicated legal documents. That’s why, even if you use a prefilled form, it’s a good idea to consult an attorney. Quitclaim deeds may not be the best option for you when obtaining a property. Attorneys can do any appropriate research into a property if warranted and recommended, since quitclaim deeds dont’; require title searches to approve the validity. They can explore and explain to you other options that may be more appropriate and beneficial for you when obtaining or looking to transfer a property.