When property is being transferred between relatives, divorced persons, or to a trust, the default document is a free quit-claim deed. It is simple, speedy, and convenient. But this handy legal document is widely misconceived and misused due to lingering myths.
In this article, we uncover some of the most prevalent quit-claim deed myths to assist you in making informed decisions.
Myth 1: A Quit Claim Deed Ensures Simple Ownership
Reality:
One of the more pernicious myths is that a quit-claim deed guarantees the grantee (the person who receives the property) will receive a clear title. In reality, this kind of deed conveys whatever the grantor (the one who gives up the property) has.
Any liens, encumbrances, or claims against the property are included as well. Make sure to perform a title search prior to taking a quit-claim deed.
Myth 2: Quit Claim Deeds Are Only Meant for Divorce or Inheritance Purposes
Reality:
Although most frequently employed for divorce settlements or between relatives, quit-claim deeds are not exclusive to these uses. They’re also employed for the purpose of putting property in trust, to fix title defects, or to put property into a business organisation.
A quit claim deed form example most often includes several application scenarios that go beyond family members.
Myth 3: You Don’t Need to File the Deed
Reality:
Completing a free quit-claim deed is just half the work. To be legally valid, it must be signed, notarised, and registered at the county recorder or registrar of one’s locality. Lack of such could lead to future conflicts or even the nullification of the transfer.
Myth 4: A Lawyer Is Always Required to Use One
Reality:
Though legal advice is advisable for complicated transfers, many people must do and submit quit-claim deeds on their own without an attorney, particularly with a solid, state-specific template. That being said, knowledge of requirements in your area is a must.
A quit claim deed form example will contain spaces for names, legal property descriptions, and notary space, so you are filling in the expected standard legal form requirements.
Myth 5: Quit Claim Deeds Can Be Used to Obliterate a Mortgage Term
Reality:
This is a significant misunderstanding. Quit claim deed conveys title interest but not mortgage liability. Even when you sell the deed to another party, you are still on the mortgage unless a lender releases you in particular or refinances the mortgage.
Always get your lender’s approval before selling a property under a mortgage.
Conclusion: Know What You’re Signing
Though a free quit claim deed is a handy legal form, it’s essential to know what it will do and won’t. Learning about it can help you avoid expensive legal errors and future conflicts.
If you need a state-specific, attorney-prepared quit claim deed form sample, go to Forms Legal and download a free sample and get started with confidence.
