In a lot of divorces, the couple divorcing owns a property together, or there is property in one of the parties names. And under terms of the Marital Settlement Agreement, one party must transfer their interest to the other party and a Quit Claim Deed is used to transfer title from one person to the other. What is a quit claim deed though?
A quitclaim deed is a type of deed that transfers an interest in real property, like a house, vacant land or a mobile home. The person giving the property is the grantor and the person receiving the property is the grantee. The quit claim deed doesn’t make any warranties, guarantees or promises about the property like a warranty deed (warranty deeds are generally used in the sale or purchase of a home; a warranty deed provides guarantees or warranties that the property has good title and is free of liens) does; the purpose of the quit claim deed is to convey whatever interest in a property a person may have to another person, which in some cases, may be no interest at all.
Quit claim deeds do not address who is liable on the mortgage, if there is still one, they only address title and interest to the property.
Each state has specific requirements for completing a quitclaim deed. Generally, every state requires the following information:
- Grantor and grantee names
- Legal description of the property – not just the address
- County name where the property is located
- Consideration – the actual purchase price paid or if a gift, then a small dollar value
- Signature of a notary public
- Grantor’s signature
- In some states, the grantee must also sign the quitclaim deed. A few states require the signatures of witnesses. After completing a quitclaim deed, it must be filed in the land records office in the county where the property is located.
Quit Claim deeds may seem like a simple one or two page document but they are actually very important documents that are used very often, especially in divorces.