The Disadvantages of a Quit Claim
- A quit claim deed is one way of transferring ownership of property.house image by hans slegers from Fotolia.com
A quit claim deed is a method of transferring property from one person to another, ceding all rights to the property to the grantee. It’s most commonly used in family situations where one family member gives a house or other piece of property to another. Quit claim deeds are often used in divorce, where one spouse gives half of a formerly shared property to the other. A quit claim can be useful in certain situations, but it does have disadvantages. - A quit claim is a document that’s particularly difficult to reverse. It means that you relinquish all of your rights to the property in question in perpetuity. By completing and signing the quit claim, you are declaring that you no longer have any interest in the property. You must be very sure that there are no circumstances in which you might change your mind before executing a quit claim.
- A quit claim does not necessarily release you from any obligation you might have to pay a mortgage on the property concerned. In fact, if you are not careful, you may find yourself with no rights whatever to use the property, yet on the hook for mortgage payments for years to come. This is a situation where you have a considerable amount of risk, but very little control.
- If you are the beneficiary of a quit claim, you must not think that the deed necessarily gives you the right to the property free and clear. Unlike a warranty deed, which is the document commonly used in the sale of a home, a quit claim does not guarantee the property is free from liens and other liabilities. It’s worth doing your homework on the financial history of the property before accepting the quit claim.
