What is a quit claim deed, and why is it important?

Simply put, a quit claim deed is a document used to transfer ownership of property. It is a fast and easy method of handing over property or real estate but is only appropriate in certain circumstances.

Think of a situation where you are married and need to include your spouse’s name on the title of your property or remove their name upon divorce. A quit claim deed can help you achieve this, given that no money exchanges hands. Below are other scenarios where a quit claim deed can be helpful.

Transferring property to subsidiaries

If you have a business with subsidiaries, a quit claim deed can help transfer ownership between your companies. You do not need a title search or insurance, and everything will happen much faster.

Transferring property to a living trust or family members

An aging parent or any family member who wishes to transfer property or land to their family member may use a quit claim deed to effect the ownership transfer. Similarly, if you want to fund a living trust you created, you will need a quit claim deed to transfer ownership of real estate or a house to the trust.

Removing title defects

Should there be unreleased liens or claims on your property, a quit claim title can help you release any interest on your property. It can also sort out minor mistakes such as misspelled names or missing signatures in a title.

Do you need a quick claim deed?

Beyond the face of simplicity and ease of quick claim deeds, there are legal technicalities that come into play. For example, there could be tax consequences and other effects on insurance.

Therefore, getting the proper help is necessary to enjoy the benefits and avoid costly misunderstandings when creating a quit claim deed.