Quit Claims Deed
A quitclaim deed is a legal instrument that is used to transfer interest in real property. Quitclaim Deeds are common when real estate is conveyed through a Will or as a gift, when property is placed in a trust, or to distribute property as part of a divorce settlement: these are common uses because unlike other property deeds, a quitclaim deed contains no title covenant. Historically a covenant was a solemn promise to engage in or refrain from a specified action and was distinguished from an ordinary contract by the presence of a seal. Since the quitclaim deed contains no title covenant, there is no guarantee that the guarantor did not engage in practices that might have compromised the integrity of the transfer process. The quitclaim deed offers no warranty or assurances as to the status of the property title and is only rendered in good faith, nothing more. Therefore, unfortunately, if a person conducts themselves dishonestly and fails to disclose pertinent matters regarding the transaction the person being transferred property will have no legal recourse to recover any losses.
Other deeds, such as the grant deed, contain warranties from the grantor to the grantee that the title is clear or that the grantor has not placed any encumbrance against the title. Due to the lack of buyer protection quitclaim deeds are generally used only in transactions where the parties know each as they are more willing to accept the risks associated with the lack of protection. Such transactions often occur between family members, as gifts, placing personal property into a business entity or to cure a defect on the title, such as a misspelling of a name. They're also common when someone wants to sell property but they're not entirely certain what the property boundaries are or whether any other claims can be made on the property. Another common use of the quitclaim deed is between divorcing couples when one spouse acquires the marital home in a divorce settlement, the other spouse could execute a quitclaim deed eliminating their interest in the property and transferring full claim to the other spouse, quickly and inexpensively.
Teuninck & Debishoppe, your friendly San Jose Legal Document Assistant, will assist you in the preparation of your quitclaim deed, so if you're looking to do any of the following get in touch with us below and we'll get back to you posthaste: You are giving up your interest in real property to a spouse or ex-spouse; you are gifting your property to another person or family member; you need to transfer property to a living trust; you want to show a name change that affects an existing deed or; you are transferring property to a business or other entity.