Warranty Deed in Divorce
A Warranty Deed is less commonly used in divorce, but it might be
appropriate in some scenarios. For instance, if one spouse is "buying
out" the other spouse's share of the property, they may prefer to use a
Warranty Deed to ensure that there are no undisclosed liens or claims on
the property. This provides the buying spouse with protection against
any potential title defects.
When the property has been in dispute or there are questions regarding
the title, a Warranty Deed may offer more security to the spouse
receiving the property. However, because of the warranties involved, this
type of transfer is more complex and may require additional steps, such
as a title search or title insurance, making it less common in the context
of divorce.
Impact of Divorce on Property Ownership and Deed Selection
Quit Claim Deed vs. Warranty Deed: Key Differences
Level of Protection:
1.
A Quit Claim Deed offers no guarantees about the title; it simply
transfers whatever interest the grantor has, if any.
A Warranty Deed guarantees that the title is clear and gives the
grantee recourse if defects arise.
Use Cases:
2.
Quit Claim Deeds are often used between parties who know and
trust each other, such as during divorce, between family
members, or to clear up ownership rights.
Warranty Deeds are standard for formal real estate transactions,
where a buyer needs assurance regarding ownership rights.
Title Assurance:
3.
Quit Claim Deeds do not assure that the title is valid, free of
liens, or uncontested.
Warranty Deeds come with warranties that protect the new
owner from title disputes or defects.
07 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
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