Quit claim deed form (at times called “quick-claim deed form” due to lack of certainty) is a kind of legal form with the help of which the ownership of a property can be transferred. The person who transfers the property is known as the grantor, and the person who receives the property is called the grantee. With the help of quit claim deed, the grantor or the owner quits the rights of the particular property by transferring the same to the grantee or the new owner.
Although most property deeds offer some kind of guarantee, with quit claim deeds, the case is not the same. The grantor, in a quit claim transaction, does not provide any guarantee as to whether he or she is the true owner of the property. In addition, whether the property is totally free or clear is not guaranteed either. So, it is very much possible as well as likely for a grantee to face loss due to unethical transfer of a property, and in case of loss, there is no provision for legal appeal. In the circumstance that the grantor receives the property after a certain amount of time, the grantee has no way to claim the property back. However, when warranty deeds or grant deeds are taken into account, the scenario is quite different since certain guarantees are generally involved.
For this kind of lack of proper warranty, quit claim deeds are not used much during actual property transfers. In most cases when quit claims are used, the giving and the receiving parties are known to each other, which eliminates the need of guarantee. For example, when property is given as a gift, or there is a transfer between family members, quit claim is the most preferred method.
Considering the nature of this legal document, quit claim deed is extensively used during divorce too. When the husband and the wife own a property together or jointly, the rights of the property are given to the spouse who receives the property. For instance, if the wife attains the ownership of the marital house during the settlement of the divorce, a quit claim deed can be used by the husband in order to transfer complete rights to the wife in a very quick and inexpensive manner.
Sometimes a property can be sold by using public auction in order to recover outstanding debts of tax of the owner. Quit claim deeds can be used for this purpose in certain jurisdictions. In this type of transactions, the body that manages the auction is generally the local government. The government, under normal circumstances, possesses no interest in the property. The only reason for selling of the property is the recovery of tax without the extension of warranty regarding the property title. Further, the buyer may be required to initiate a quiet title action for the purpose of removing clouds to the title. For bail bond, the majority of the jurisdictions do not allow the use of quit claim deeds as collateral.
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