Clean line in the Quitclaim Deed

Aug 6th, 2022
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No guarantees to the new owner: A quitclaim deed doesnt come with any guarantees from the grantor. There are no assurances that the property is clear of liens and encumbrances, and the onus will be on the grantee to complete a title search if they want one.
There is no title protection for the new owner. There may be third-party liens on the property or other title defects that will make it difficult for the grantee to make improvements to the property or even sell it.
What Is a Quitclaim Deed? Quitclaim deeds are most often for transferring property between family members or to cure a defect on the title, such as a misspelling of a name.
A quitclaim deed does not automatically release you from the mortgage loan associated with the property. Until the original owner is officially released from the mortgage, that individual is still on the hook for payments and missed payments could affect their credit.
Which of these situations could be resolved with a quitclaim deed? an unprobated will has caused a cloud on a houses title (A quitclaim deed would resolve that cloud on the title by ensuring none of the deceaseds potential heirs will later make a claim of ownership.)
Downsides to a quitclaim deed The greatest risk to receiving property with a quitclaim deed is that you may not have a true right to the property title. The grantor might not own the property title at all, yet quitclaimed you the deed.
Due to this, quitclaim deeds typically are not used in situations where the property involved has an outstanding mortgage. After all, it would be difficult for many grantors to pay off a mortgage without proceeds from the sale of the property.
It can be used to release a nominal real estate interest as it can effectively transfer whatever interest the grantor has, regardless of its value. However, a quitclaim deed cannot be used to warrant that a title is valid since it does not guarantee the grantors ownership interest.

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