What is a Quitclaim Deed Used For? 4 Common Scenarios
A quitclaim deed is a legal document used to transfer ownership of real estate. However, unlike a warranty deed used in traditional home sales, a quitclaim deed offers the new owner absolutely no guarantees or warranties about the property’s title.
The person signing the deed (the grantor) is simply transferring whatever interest they may have in the property, without promising that they have any interest at all. Because of this high level of risk for the recipient, quitclaim deeds are only used in specific situations where there is a high degree of trust between the parties. Here are the four most common scenarios.
1. Transferring Property Between Family Members
This is the most frequent use of a quitclaim deed. For example, a parent may use a quitclaim deed to gift a property to their child, or siblings may use it to transfer ownership of an inherited property among themselves. Because the parties know and trust each other, the lack of a warranty is not a concern.
2. Adding or Removing a Spouse from the Title
Quitclaim deeds are often used in cases of marriage or divorce.
- Marriage: One spouse can use a quitclaim deed to add their new spouse’s name to the title of a home they owned before the marriage.
- Divorce: As part of a divorce settlement, one spouse can use a quitclaim deed to sign over their ownership interest in the marital home to the other spouse.
3. Transferring Property into a Living Trust
A common estate planning strategy is to transfer your property into a living trust. This can help your heirs avoid the lengthy and expensive probate process after your death. A quitclaim deed is the simple legal instrument used to move the property from your individual name into the name of your trust.
4. Clearing a “Title Cloud” or Minor Defect
Sometimes, a title search may reveal a minor “cloud” or defect that could cause issues with a future sale. For example, a previous owner’s long-lost heir might have a potential claim to the property. To resolve this, the current owner might ask that person to sign a quitclaim deed, in which they officially give up any potential claim they might have had. This helps to clear the title.
Why Domidocs is Essential for Managing Your Deeds
Whether you are giving or receiving a property with a quitclaim deed, or you hold a traditional warranty deed, this document is the legal proof of ownership. Protecting it is critical.
The Domidocs secure digital vault is the ideal place to store a permanent, protected digital copy of any deed. This ensures the document is safe from loss, damage, or theft. Furthermore, after any title transfer, it is wise to enable Home Title Monitoring. The Domidocs platform not only stores your deed securely but also monitors the title it represents for any future fraudulent activity, providing complete, end-to-end protection for your ownership.
HomeLock™ is the one Property Fraud Protection service that CAN notify you before, during, and immediately after fraud occurs. If more homeowners had HomeLock™, we wouldn’t see so many scammers like this husband and wife who have defrauded dozens of homeowners!
See how DomiDocs and HomeLock™ can protect your home in this Press Release! This layered approach protects both your legal ownership and your financial identity. For more information, read our article on how HomeLock™ can protect you from Title and Deed Fraud.