Deeds are simply documents that transfer title from one person
to another. There aare many different types of deed, but basicly
they just transfer title.
Let's talk about a "quit claim deed".
A quit claim deed is a type of deed where a person (grantor)
with an ownership interest in a property transfers that interest
to another person (grantee). The grantor offers no guarantees
about the title to the grantee recipient. Don't confuse a quit
claim deed with the type of deed that is normally used to
transfer title to real estate. That is most often a grant deed
or a warranty deed. Those deeds transfer title with some
guarantee that the title is legal and valid.
You sometimes hear a quite claim deed erroniously called a
"quick claim deed".
A quit claim transfers only the rights of the person signing
the deed. It does not guarantee that other people don't have an
interest in the property. If there are other owners, their
ownership is not affected by the quit claim.
You will find that a quit claim deed is most often used to clear
up problems with a title or when someone wants to use a simple
method to give up all interests in a property. Quitclaim deeds
are sometimes used by a divorcing couple, where one spouse signs
all his/her rights to their home over to the other.
It is not uncommon that when a property is being sold a title
search finds that a mistake has been made in the past and a
previous owner never relinquished his ownership in the property.
That puts a "cloud" or "defect" on the title. The problem is
solved by contacting the previous owner and asking him/her to
sign a quit claim deed.
The title company is usally the one who makes the call when a
quit claim deed is needed from a prior owner. Most transfers of
property involve morrtgage loans. When there is a cloud on title
the quict claim dded is necessary to insure the lender of a
first lien position if the borrower does not make payments
according to the note. The lender cannot enforce a trustee sale
(non-judicial foreclosure) against someone whose name is not on
the note, the that name is on title.
If that person will not sign the quict claim deed to release
their itnerest in the property the sale probably will not close.
At the very least the close will be delayed while other actions
are taken to complete the sale.
About the author:
Mark Walters offers a free sample of a quit claim deed form at
http://www.quitclaim@hereweb.com
