What Is a Deed?
A deed is a legal document that transfers real estate ownership from one party to another. It is crucial
in property transactions because it defines the new owner and ensures the transfer is legally recorded.
There are multiple types of deeds, but we will focus on Quit Claim Deeds and Warranty Deeds.
Quit Claim Deed Explained
A Quit Claim Deed (sometimes called "quitclaim") is one of the most straightforward property transfer
forms. It allows one party to transfer their interest in a property to another party without any
warranties or guarantees about the status of the property title. In other words, the person transferring
the property (the grantor) is simply "quitting" any claim they have on the property and transferring it
to the new owner (the grantee).
A Quit Claim Deed does not provide any assurance that the title is clear or that there are no other
claims against the property. It only transfers whatever interest the grantor may have, if any, at the time
of the transfer. This means that if there are any existing liens or title issues, the grantee is receiving
them as part of the property transfer.
QUIT CLAIM DEED VS.
WARRANTY DEED
Divorce often necessitates a change in ownership of
marital property, especially the family home;
choosing the right type of deed is a critical aspect
of property settlement. Two common types of
deeds that often come up in the context of divorce
are Quit Claim Deeds and Warranty Deeds. Each
serves a different purpose and offers varying levels
of protection and assurance in property transfer.
Understanding the differences between these deeds
and their implications during a divorce can help
divorcing spouses make more informed decisions
regarding property ownership.
KEY DIFFERENCES AND THEIR IMPACT ON DIVORCE PROPERTY SETTLEMENTS
Written by Jody Bruns, President Divorce Lending Association
05 DIVORCE REAL ESTATE & MORTGAGE JOURNAL