When you want to sell real estate property, the first thing you need to do is prepare the necessary documents for signing. You can get a quitclaim deed from your lawyer where you will be explained the points like this. If you want to buy real estate property, you must understand quitclaim deeds to save yourself from any legal entanglements.
What is a Warranty Deed?
A warranty deed is a legal document that is used between a seller and a buyer for the proof of ownership and legally transferring a property. A warranty deed guarantees that all the claims in the document are true, including the party selling or transferring the property with a legal claim. Generally, a warranty deed is used to sell real estate properties.
A warranty deed is a document in which the grantor provides a guarantee to the Grantee that they have not borrowed money from other people against the deed. The warranty deed makes sure that the title is free of all liens and encumbrances and has no mortgage against it. A warranty deed does not stop future claims against the property but ensures that the present claim is not there.
Types of Warranty Deeds
There are many types of deeds. A deed is a document that serves as proof of ownership and allows the transfer of ownership. The designation given to a particular type of deed determines what rights the buyer or Grantee has once the deed is signed and filed with the county office. Generally, three types of deeds are commonly used:
General Warranty Deed
The grantor (seller) writes a general warranty deed to every Grantee. When someone desires to sell a property, a warranty deed ensures complete protection for it as compared to other deeds. If a buyer has doubts about some existing or future problem in a property, then this type of deed could be used. A general warranty deed is written based on the state’s laws and regulations. Every state does have its own provision for it, even though the basic elements are common for all six covenants in all states.
Special Warranty Deed
A special warranty deed is another kind of real estate deed. It serves the same purpose as a warranty deed but has lesser protection for the Grantee. When someone purchases a home with a warranty deed, they can sue the previous homeowner if there are any defects in the property. If a person purchases a home with a special warranty deed, there are fewer chances of them renegotiating with the seller after acquiring the deed about defects or errors in the property.
Quit Claim Deed
If you plan to buy a property, several legal documents should be presented to you. One of these is a Quit Claim Deed. What does it mean? It means that the seller doesn’t want to make any guarantees to the buyer regarding the title or condition of the property. There is no warranty of any kind on the property when the seller gives a quitclaim deed. Another reason why sellers may ask for this document is if they want to be free from any liability that may result from the ownership and possession of the property.
What is a Quit Claim Deed?
A quitclaim deed is a legal document that you can issue to transfer your interest in a property to your heirs after you have passed on. However, it does not guarantee the claim of the title or assures anything regarding the previous owner. This document also doesn’t carry any burden of commitment and liability to your heirs. It is similar to a warranty deed but is much simpler. It carries your signature and nothing else except dates, lines, and numbers. The name itself states that this document only claims satisfaction or fulfillment of your ownership and doesn’t imply any promise or contractual agreement.
Least Amount of Protection Unlike Any Deed
A quitclaim deed is a type of deed that passes an interest in the property from the grantor to the Grantee. The main difference between this document and other types of deeds is that it does not make any promises, guarantees, or warranties regarding the property’s title. This means that those who receive a quitclaim deed do not have any protection against misrepresentation.
Only Accepted Because of Trust and Know-how
A Quitclaim deed is a document that anyone can file to release their property from an earlier deed or contract. It does not guarantee that the person has any title to the property; it cannot give any insurance about the quality of the grantor’s title. The primary use of a quit claims deed is to transfer interests in real property from one owner to another while at the same time transferring no warranty regarding the quality of the title. Since it contains no warranty, this type of deed is normally filed by a person having low expectations of his title. Otherwise, it can be used only in certain circumstances.
Clear Title Defects
In real estate, three essential aspects are of paramount importance. These include possession, ownership, and the title. As the name suggests, possession signifies that the property has been acquired by the individual or individual who is trying to sell it. When it comes to ownership, we can consider a clear title to offer an honest and unbroken chain of transactions leading back to the seller and buyers. Finally, there is the issue of titling. Tittle simply means that the property has been acquired by all legal requirements such as due diligence, the standard of proof, and other similar conditions.
Quit Claim Deed Only Affects the Ownership
A quitclaim deed does not provide a guarantee as it does not involve the mortgage. It has nothing to do with the debt or other liabilities. Although this simplistic deed is mainly used to transfer properties, it is also only able to change the ownership.
What is the Difference Between a Warranty Deed and a Quit Claim Deed?
A warranty deed is used to transfer ownership of a property, providing the buyer with a guarantee that the title and interest in the property being sold are clear and free from all claims. A quitclaim deed is an instrument that conveys whatever interest the grantor has in real property.
What is Included in a Quit Claim Deed Template?
Grantors are the parties that currently possess the ownership of a property. It can either be an individual or a corporation.
After closing the deal and paying on the property, the Grantee will simply take possession of the property.
This is the physical street address, including no P.O. Box number. You may include a telephone number for the branch or contact person here.
A parcel number is a unique identifier for your property. The parcel number will assist you in finding information regarding taxes, ownership, and the location of your land. It consists of two parts; the first part consists of five numbers, and the second part consists of six letters.
In real estate, the consideration is the amount of money that is given against the property by the Grantee to the grantor. They are fixed and must be certain. Mixing gift and loan, purchase and sale, or mixing personal and bank loans are not legally valid.
The witnesses are required during the quitclaim deed by law. Such witnesses should be present and able to verify the owner’s identity, the party who is signing, and their relationship with the other party.
A legal description is comprised of measurements to describe the real property legally. It will help you fall under the guidelines issued by government laws. A legal description will often include physical attributes like its street address and the name. And if you are going with a survey, it will also include a legal land description of the property that has been surveyed by government surveyors.
A notary public is a microchip that serves several people who need to submit various kinds of documents. Notary publics are involved in the transfer of property, and they are responsible for confirming the identity of people and documents.