While quit claim deeds might seem like a simple way to transfer property ownership, they have important legal implications that you should understand before using one. As a Florida attorney who specializes in real estate law, I often see these deeds used incorrectly, leading to unintended consequences and legal headaches. To help you avoid these pitfalls, here are five essential things you need to know:
1. They Offer Zero Guarantees
Quit claim deeds are the no-frills option when it comes to transferring property. Unlike warranty deeds, which come with guarantees about the property’s title and the seller’s right to sell, a quit claim deed offers no such assurances. When you sign a quit claim deed, you are essentially saying, “I give up any claim I have to this property without making any promises about whether I actually own it or if there are any liens or other issues.”
Think of it like buying a used car as is from a stranger. You are taking a risk, hoping the car is in good condition, knowing there is no guarantee. Similarly, with a quit claim deed, the grantee receives the property as is, with all its potential benefits and burdens.
2. They Should Only Be Used for Low-Risk Transfers among Trusted Parties
Because there are no guarantees, these deeds are best suited for situations where there is a high level of trust between the parties involved. They are often used for transfers between family members, such as from parents to children or between siblings. In these cases, the parties typically have a good understanding of the property’s history and ownership status.
Quit claim deeds are also commonly used in divorce settlements to transfer ownership of the marital home or other real property from one spouse to the other. They can also be used to add or remove a spouse from a property title after marriage or divorce.
3. They Can Be a Quick Fix for Title Issues
One of the most common uses of this type of deed is to clear up title defects. For example, if someone’s name is misspelled on a deed, a quit claim can be used to correct the error. They can also be used to release any potential claims someone might have on a property, like an ex-spouse who may have a lingering interest in the marital home.
4. They Transfer Only What the Grantor Has
A quit claim deed can transfer ownership just as effectively as a warranty deed only if the grantor (the person transferring the property) actually has a valid ownership interest. If it turns out they do not, the grantee (the person receiving the property) is out of luck.
Imagine someone trying to sell you the Brooklyn Bridge. They might sign a quit claim deed; however, that does not mean you actually own the bridge. Similarly, if the grantor of a quit claim does not have a legitimate claim to the property, the deed will not magically create one for the grantee.
5. They Do Not Affect Mortgages
If a property has an existing mortgage, a quit claim deed will not magically erase it. The grantor remains responsible for the mortgage even after transferring the property. This can be problematic if the grantee stops making payments, as the grantor could be held liable.
If you are planning to use a quit claim for a property with a mortgage, it is crucial to consult with an attorney to understand the potential risks and discuss options like loan assumption or refinancing.
Need Help with Quit Claim Deeds in Florida?
If you are considering using a quit claim deed to transfer a property, it is always wise to consult with an experienced real estate attorney, like me.
I can help you understand the process, ensure the deed is properly prepared, and most importantly, protect your interests.
Do not hesitate to call me at (305) 921-0976 or email me at [email protected].
I will guide you through the intricacies of quit claim deeds and ensure a smooth and legally sound property transfer.
