Deeds allow you to transfer interest in real property from one person or business to another. A Quit Claim Deed, however, is a special deed that transfers interest without making any promises or warranties about the property. In other words, the person making the Quit Claim is promising that he or she is giving away his or her interest, but not promising that the property is in good shape, that the ownership interest was acquired properly or anything else of that nature.
Quit Claim Deeds are frequently used to quickly and easily transfer ownership to businesses, trusts or joint ownership statuses without having to go through the detailed process of using a title company, real estate brokers, and the like. If a couple gets married and one partner owns a home, she can use a Quit Claim Deed to transfer ownership from herself to both of them.
You should always be aware of the possible ramifications of transferring title to real estate. Failing to properly do so can result in problems with insurance, mortgages, liability, taxation, etc. If you need help with it, you should speak with an attorney. If, on the other hand, you know what you're after, LegalACE can help make the process easy.
I absolutely loved working with LegalACE to establish my LLC.
The entire process was very easy
to follow and far more user
friendly than some of the other
sites I looked into.
~ Jackie W. - Chandler, Arizona
All About Quit Claim Deeds
LegalACE education center provides you with the information and resources you need when
considering a Quit Claim Deeds. The Quit Claim Deeds Guide provides general information about Quit Claim Deeds, and the FAQs answer some of the most common questions people ask. This information
allows you to make informed decisions.
Yes. Your interest in real property can be transferred to a business entity by using a quit claim deed. This is generally considered a good idea, however, there is one major consideration you should take into account. If there is a mortgage on the property, there is a very high chance that your mortgage company has inserted what is called a due-on-sale clause into your contract. The clause basically states that any time you sell or transfer the property to a different person or business, they can force you to immediately pay up the balance of the loan. Transferring the property to the name of an LLC or corporation would activate this clause. They may not actually try to enforce it, but you should be aware of its significance.
Both deeds are used to transfer real estate. With a warranty deed, you transfer a title to property and make a promise that you own the property without any legal problems (such as creditors, liens, etc.). The warranty deed is commonly used when you sell real property to someone else. Chances are that when you bought your home, a warranty deed was given to you. With a quit claim, you simply transfer the property and make no promises whatsoever. Quit claims are commonly used when owners want to quickly, and easily transfer a title without having to make any promises.
LegalACE is not an attorney and is not permitted to offer legal advice or otherwise act as an attorney.
Legal Ace is a document preparation service. Legal Ace should not be considered a substitute for the
advice of an attorney. See the full disclaimer for more details.