A quitclaim deed is a legal tool used to quickly transfer an interest in a property. By signing it, the transferor (Grantor) transfers all of the interest he or she has in the property to the receiver (Grantee). However, it is important to note that a quitclaim deed only conveys the existing interest and does not make any guarantees as to the legality or flawlessness of the title. This means that if the transferring party does not actually have a legal interest, the receiving party may not be able to actually take ownership of the property.
Scenarios for using a quitclaim deed in a housing transaction
Waiver deeds are commonly used in informal real estate transactions or in the context of transferring an interest in a property in the context of a specific relationship. Here are a few common scenarios in which they are used:
Transfer of property within a family
A quitclaim deed is an easy option when transferring property between family members. Example:
A parent transfers property to a child.
Transfer of property interests between spouses after marriage or divorce.
Adjustment of property ownership in a family trust or estate distribution.
Amending the Title Record
If the title record of a property needs to be amended, such as adding or removing the name of a party, this can be accomplished through a quitclaim deed:
Changing a jointly owned property to individually owned.
Remove an owner from the title (e.g., one party relinquishes interest in a divorce).
Correcting Errors in Title Documents
When there are technical errors in the title documents (such as misspellings or inaccurate descriptions), a quitclaim deed can be used to correct these issues without having to recreate all the documents.
Low-risk or non-commercial transfers
In property transfers where there are no financial disputes, a waiver deed can simplify the process and save time and costs.
Waiver deeds are a special and efficient tool in housing transactions and are primarily used to simplify informal transfers of property interests.
In scenarios where the family members or trust relationship base is high, a waiver deed provides a convenient solution for equity adjustment.