Quitclaim Deed Vs. General Warranty
According to The 'Lectric Law Library, a deed”signifies a writing, by which lands, tenements and hereditaments are conveyed, which writing is sealed and delivered by the parties.” While quitclaims and overall warranties are both deeds, they are used for very different functions and communicate completely different rights and assurances.
Quitclaim Deeds
A quitclaim deed is a document co-owners of a property use when they wish to transfer possession of their property to just one of them. It’s a frequently used tool in divorce settlements.
General Warranty Deed
A general warranty deed is a guarantee a property owner makes when purchasing the property. The guarantee is that the buyer of this property will have no obligation for settling any prospective claim or claims to the property following the final takes place. This implies, by way of example, that if two years to possession a formerly unknown claim against the property surfaces, the seller of the property takes complete responsibility financially or for settling the claim. In practice, in addition to providing a general warranty deed to the buyer at the time of closure, most property sellers purchase title insurance to handle any unforeseen claims against the property.
Filing a Quitclaim
Any co-owner of a property can file a quitclaim deed, as long as the co-owner signals it and the co-owners’ signatures are notarized. Quitclaim forms can be found for a small fee on the internet or at most office supply stores and don’t require the help of a lawyer. They are filed in the county recorder’s office in the county in which the property is situated. Check with the local county recorder’s office for certain details about how best to complete the form.
Developing A General Warranty Deed
Since general warranty deeds continue with them much increased possibility of significant financial expense, they need to be drafted by a lawyer that specializes in real estate law. Typically, the title company that symbolizes the mortgage lender in the closing will offer this service as part of its responsibilities.
Limitations of Quitclaim Deeds
A quitclaim deed only transfers ownership rights at a jointly held property to one of those owners. It doesn’t alleviate either co-owner of financial responsibility for the home, assuming they each co-signed the mortgage note. What’s more, the deed impacts just property and any fittings included with it (water heaters, air conditioners, furnaces, etc.) It does not transfer possession of any chattels.
Limitations of General Warranty Deeds
A general warranty deed protects the buyer of a property from future claims against the property. It doesn’t guarantee to either the buyer or the seller that the seller has free and clear title to the property being sold. If possession of this property is contested and the seller cannot prove clear title, then the seller must make the situation right, up to the point of reimbursing to the buyer the sale cost of their property in addition to compensation for any improvements to it that the buyer may have made since the final.
