Legal Real Estate Forms: the Quit Claim Deed

A Quit claim deed is a formal deed transfer from the registered owner to another person or entity. Simply put the person who has legal rights to the real estate title transfers these rights to someone or something other than himself.

This conveyance is frequently used between divorcing partners and family members. The conveyor, or person claiming the rights to the real estate, transfers all claims and rights to the receiver. The quit claim deed does not guarantee that the conveyor has the legal rights to the real estate, just conveys claims and interests.

To be legally binding, the quit claim deed must be in writing, signed by all parties and recorded so that creditors or future purchasers of the property have notice of the transfer. This is best done by having a legal quit claim deed written, signed and notarized then filed in your local county or parish courts. A legally binding quit claim deed is required in all 50 states with few variances. Local ordinances or an attorney can advise of the particular aspects of the deed that must be present in your state. A handshake and a gentlemen?s agreement will not provide the legal basis for a quit claim deed. The statue of frauds requirement makes oral or other type agreements unenforceable. In other words, “Get it in writing.”

Since this type of deed transfer gives the receiver the rights to the real estate and the conveyor gives up the rights to the real estate, does this mean that the creditor has to honor this deed transfer? No, not necessarily. If you are simply saying your spouse no longer has interests in the property and there is no actual sale of the property, the creditor has the right to hold all original parties accountable to the loan. In other words, if you file this in the local courts and the person receiving the property does not pay the loan, the creditor can come to you for payment. Unless it is a sale, approved by the financial institution, the quit claim deed is just a transfer of rights but not a release of financial responsibility. To be financially free of the real estate, further documents are required.

The quit claim deed is a wonderful tool for property that is owned free and clear. This type of deed is an excellent means of transferring real estate between family members such as in a division of an estate before the owner expires. The deed can be legal with or without the purchase of real estate. In other words, a person can donate, or sell these rights to the property for a price using a quit claim deed.

Gen Wright
http://www.articlesbase.com/national,-state,-local-articles/legal-real-estate-forms-the-quit-claim-deed-677319.html

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