Quitclaim: Difference between revisions
Undid revision 414154899 by 68.104.61.40 (talk) |
(edit summary removed) Tag: references removed |
||
| Line 1: | Line 1: | ||
{{Property law}} |
{{Property law}} |
||
A '''quitclaim deed''' (sometimes erroneously referred to as a "quick-claim" deed) is a legal instrument by which the owner of a piece of [[real property]], called the ''[[conveyancing|grantor]],'' transfers his interest to a recipient, called the ''grantee.'' |
A '''quitclaim deed''' (sometimes erroneously referred to as a "quick-claim" deed) is a legal instrument by which the owner of a piece of [[real property]], called the ''[[conveyancing|grantor]],'' transfers his interest to a recipient, called the ''grantee.'' The owner/grantor terminates (“quits”) his right and claim to the property, thereby allowing claim to transfer to the recipient/grantee. |
||
Unlike most other property deeds, a quitclaim deed contains no [[covenant|title convenant]] and thus, offers the grantee no [[warranty]] as to the status of the property title; the grantee is only entitled to whatever interest the grantor actually possesses at the time the transfer occurs.<ref>LexisNexis, s.v. "Property: The Deed," retrieved 14 Feb 2011. [http://www.lexisnexis.com/lawschool/study/outlines/html/prop/prop23.htm].</ref> This means that the grantor does not guarantee that he actually owns the property at the time of the transfer, or if he does own it, that the title is free and clear. It is therefore possible for a grantee to receive no actual interest, and -- because a quitclaim deed offers no warranty -- have no legal recourse to recover her losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred. In contrast, other deeds often used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain warranties from the grantor to the grantee that the title is clear and/or that the grantor has not placed any [[encumbrance]] against the title. |
Unlike most other property deeds, a quitclaim deed contains no [[covenant|title convenant]] and thus, offers the grantee no [[warranty]] as to the status of the property title; the grantee is only entitled to whatever interest the grantor actually possesses at the time the transfer occurs.<ref>LexisNexis, s.v. "Property: The Deed," retrieved 14 Feb 2011. [http://www.lexisnexis.com/lawschool/study/outlines/html/prop/prop23.htm].</ref> This means that the grantor does not guarantee that he actually owns the property at the time of the transfer, or if he does own it, that the title is free and clear. It is therefore possible for a grantee to receive no actual interest, and -- because a quitclaim deed offers no warranty -- have no legal recourse to recover her losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred. In contrast, other deeds often used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain warranties from the grantor to the grantee that the title is clear and/or that the grantor has not placed any [[encumbrance]] against the title. |
||
Revision as of 03:15, 16 February 2011
| Property law |
|---|
 |
| Part of the common law series |
| Types |
| Acquisition |
| Estates in land |
| Conveyancing |
| Future use control |
| Nonpossessory interest |
| Related topics |
| Other common law areas |
|
Higher category: Law and Common law |
A quitclaim deed (sometimes erroneously referred to as a "quick-claim" deed) is a legal instrument by which the owner of a piece of real property, called the grantor, transfers his interest to a recipient, called the grantee. The owner/grantor terminates (“quits”) his right and claim to the property, thereby allowing claim to transfer to the recipient/grantee.
Unlike most other property deeds, a quitclaim deed contains no title convenant and thus, offers the grantee no warranty as to the status of the property title; the grantee is only entitled to whatever interest the grantor actually possesses at the time the transfer occurs.[1] This means that the grantor does not guarantee that he actually owns the property at the time of the transfer, or if he does own it, that the title is free and clear. It is therefore possible for a grantee to receive no actual interest, and -- because a quitclaim deed offers no warranty -- have no legal recourse to recover her losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee can only receive the interest the grantor held at the time the transfer occurred. In contrast, other deeds often used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain warranties from the grantor to the grantee that the title is clear and/or that the grantor has not placed any encumbrance against the title.
Because of this lack of warranty, quitclaim deeds most often used to transfer property between family members, as gifts, placing personal property into a business entity (and vise-versa) or in other special or unique circumstances. Quitclaim deeds are rarely used to transfer property from seller to buyer in a traditional property sale; in most cases, the grantor and grantee have an existing relationship or is the same person.[2]
Another common use for a quitclaim deed is in divorce, whereby one spouse terminates any interest in the jointly-owned marital home, thereby granting the receiving spouse full rights to the property. For example, when a wife acquires the home in the divorce settlement or by court decision, the husband could execute a quitclaim deed eliminating his interest in the property and transferring full claim to the wife quickly and inexpensively.[3]
In some jurisdictions, quitclaim deeds may also be used in tax deed sales, where a property is sold in a public auction to recover the original homeowner’s outstanding tax debt. The auctioning body is usually the local government, which claims no interest to the property whatsoever, but is selling only to recover the back-owed taxes without extending any warranty for the property title.
Quitclaim deeds may also be used in some jurisdictions in cases of tax deed sales where property is auctioned off to pay outstanding tax debt. The auctioning body is usually a local government, which claims no interest in the property whatsoever, but is selling it only to recoup the back taxes without providing any other warranties of title.
See also
References
- ^ LexisNexis, s.v. "Property: The Deed," retrieved 14 Feb 2011. [1].
- ^ Wilken, JD, Sean (2003). The Law of Waiver, Variation and Estoppel (2nd ed.). Oxford University Press USA. ISBN 0-19-925321-8.
{{cite book}}: Unknown parameter|coauthors=ignored (|author=suggested) (help); Unknown parameter|month=ignored (help) - ^ Dukeminier, Jesse (2006). Property (7th ed.). Aspen Publishers. ISBN 0-7355-8899-6.
{{cite book}}: Unknown parameter|coauthors=ignored (|author=suggested) (help); Unknown parameter|month=ignored (help)