Difference between revisions of "Quitclaim deed"
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(New page: A quitclaim deed is a deed without warranty of title which passes whatever title the grantor has to another. category:legal terms) |
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| − | A quitclaim deed is a deed without warranty of title | + | A '''quitclaim deed''' is a [[deed]] without [[warranty]] of title, where the seller (the ''grantor'') sells to a buyer (the ''grantee'') whatever interest, if any, the seller has in the underlying [[real estate]]. |
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| + | Because there is no warranty, there is often little or no recourse if it turns out that the seller has absolutely no interest in the real estate whatsoever. As a result, [[mortgage]] companies will rarely, if ever, agree to a mortgage where the sale is via quitclaim deed; they will insist on a [[warranty deed]]. | ||
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| + | Nonetheless, they are still common in certain real estate transactions, such as: | ||
| + | *gifts from one family member to another | ||
| + | *where a married couple is divorcing, and one spouse is transferring his/her interest in the property to the soon-to-be ex-spouse<ref>However, this does not relieve that party of any obligations under a mortgage.</ref> | ||
| + | *The most common use is when a governmental entity (or, in some states, a [[Homeowners Association]]) seizes a property for nonpayment of property taxes or other liens, and sells it to a third party. In this case, likely the buyer will need to initiate a [[quiet title action]] to clear title for marketability purposes or to obtain a building loan. | ||
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| + | ==References== | ||
| + | {{reflist}} | ||
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| + | [[Category:Real Estate]] | ||
| + | [[Category:Legal Terms]] | ||
Latest revision as of 22:55, November 9, 2019
A quitclaim deed is a deed without warranty of title, where the seller (the grantor) sells to a buyer (the grantee) whatever interest, if any, the seller has in the underlying real estate.
Because there is no warranty, there is often little or no recourse if it turns out that the seller has absolutely no interest in the real estate whatsoever. As a result, mortgage companies will rarely, if ever, agree to a mortgage where the sale is via quitclaim deed; they will insist on a warranty deed.
Nonetheless, they are still common in certain real estate transactions, such as:
- gifts from one family member to another
- where a married couple is divorcing, and one spouse is transferring his/her interest in the property to the soon-to-be ex-spouse[1]
- The most common use is when a governmental entity (or, in some states, a Homeowners Association) seizes a property for nonpayment of property taxes or other liens, and sells it to a third party. In this case, likely the buyer will need to initiate a quiet title action to clear title for marketability purposes or to obtain a building loan.
References
- ↑ However, this does not relieve that party of any obligations under a mortgage.