In this video,  Suze Orman  answers an email on how quitclaim deeds work from a caller who wants her boyfriend off the title to their house.  Her answer describes what a quitclaim deed is, and a couple of circumstances where one would be useful in transferring a partial interest in title to property.

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Quit Claim .com is an online information site created to assist people with quitclaim deed information. Quit claim .com does not warrant the accuracy of information provided, which is obtained from multiple sources, whose content is outside quit claim .com control in many cases. All information provided herein is for educational and informative purposes only. It should not be used to transfer property without further research from recognized experts in the field. No specific information is provided regarding your particular real estate or your specific needs. You are encouraged to consult your real estate attorney.

Sole ownership is the first way to hold title. Basically, this means that one man or one women owns 100% of the property less the value of any property liens. However, it is not quite as simple as it sounds. Sole ownership can be held several ways. If you you are unmarried, you can hold sole title as an unmarried man, or unmarried woman, or a single man or single woman. Per the dictionary definition single man seems the same as unmarried man. However, some title company personnel insist that unmarried means now single but previously married, while single means single and never married. I have not found any documentation to support this, but have run into it on several occasions.

A person may also be married but hold sole and separate property in their name only. Laws vary between states, some of which are community property states, and some of which are not. However, generally, a person may hold sole and separate title to property even if married if the property was owned prior to marriage, purchased from separately owned money, or inherited as sole ans separate property. A prenuptial agreement can also identify separate property. Even if property in marriage begins as sole and separate, it can become community or joint property if separate assets are mingled. For example, if the mortgage on a separate property is paid with community money, or if separate bank accounts are merged, the property can become community. If single, no further research may be necessary. However, if you are married and trying to keep title separate, you should consult an attorney with expertise on state laws for the state you reside in.

Another form of title vesting is community property, used only in community property states, many of which developed their laws with some Spanish influence, mostly in sun belt states.  Community property is a form of joint ownership for marital assets in community property states.  Any property acquired during marriage using marital assets is generally considered community property in these states.  Community assets are owned 50% each.  As mentioned above, property owned separately, prior to marriage, can also be converted to community property using a quitclaim deed.  They can also be mingled, in some cases unintentionally, resulting in all or part of the formerly separate property to become community property.  Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are community property states.

Some people use joint tenancy for title vesting in order to ensure more than one party has an undivided ownership stake in real estate title.  As with other forms of title vesting, a quitclaim deed can be used to create a joint tenancy when a property is acquired or to add an owner after, either due to marriage or some other reason.  Joint tenancy is used for marital assets in states not using community property, and can be used in community property states as well.  Joint tenants are not limited to married couples.  Any 2 or more parties can become joint tenants in a single property.  Joint tenancy often includes right of survivorship.  This means that if one joint tenant dies, their interest reverts to the other joint tenants.  This can be identified on the quitclaim deed,for example as joint tenants with rights of survivorship to eliminate any uncertainly as to the intent of the parties.  Laws vary on joint tenancy and rights of survivorship by state, so additional local research should be done for your state to determine if this is the right form of title for your needs.

Next, tenants in common is another way to hold title.  This is also an undivided interest in property among 2 or more parties, and parties can be added or removed using a quitclaim deed.  The biggest difference between tenants in common and joint tenants is generally that there are no rights of survivorship.  In other words, if one tenant in common dies, their interest passes on to their heirs, either by will, trust, or intestate (without a will).  This form of title vesting is often useful for non-married investment partners in real estate.  Also, unlike community property or joint tenancy, each tenant in common’s interest in the property need not be equal.

Another form of title vesting is tenancy by the entirety.  This is similar to joint tenancy between husband and wife, but each spouse owns the entire property rather than half.  No one spouse can sell any portion of the property without the consent of the other.  A benefit of this form of title vesting is that if a creditor is owned money by one of the owners, the creditor cannot collect against the property unless the spouse dies who does not owe the creditor.  The surviving spouse owns the entire property with no probate required.  However, if one spouse becomes unavailable or incompetent, it can be difficult for the other spouse to sell the property under this form of title vesting.

A quit claim deed can be used to change from any one of the forms of title above to another.  The most common instances are adding a spouse to title of property owned prior to marriage, or removing a spouse form title due to divorce.  However, there are other motivations to change title vesting, such as transferring a property from one of the above forms of title to a trust or corporation, or to change the survivorship outcome upon one party’s death.  Only you can determine which form of ownership best suits your needs, once you understand the differences between options.

Step one is to obtain a quitclaim form. Quit claim forms are usually one simple page. On the right side of every page of this this web site you can click to download a quit claim form. Some free forms are available on the internet, but the better written, better structured, and more reliable forms should be purchased. It is a very small price to convey one of your most valuable assets properly. Fortunately, they are very inexpensive, just a few dollars, and can be downloaded instantly.

Quitclaim forms include several components contained within the legal language for each section. The top section describes who the grantor and grantee are, the property location (common street address), and the county jurisdiction where the property is to be conveyed. The second section provides how much consideration is exchanged for the property interest. When conveying between family members or changing title vesting, this may be a nominal amount, perhaps $10.00. When a purchase is involved, from an unknown seller, it may be a large amount, hundreds of thousands or even millions of dollars in some cases. Some amount of consideration is generally required for a contract of sale to be valid. It is worth noting that the county recording fees and county transfer taxes are usually calculated using the amount of consideration. The smaller the consideration, the less will be paid to the county. This section also usually contains how title should vest. Joint tenancy, community property, sole ownership, and tenants in common are examples of how title may vest. Another entire article has been written on title vesting on this web site, how to hold property title , if you are interesting in a more in-depth discussion of how to hold title. Below this section, the quitclaim generally shows the legal description. This is not the common address, or street address, listed in the first section. The legal description can usually be found on your deed from the prior purchase of the property, or the county offices for your county will make it available to you at no charge. It is a matter of public record and can often be obtained by phone, in person, or over the web. The next section usually contains legal language about the rights being conveyed. Last, there is a section for a witness to sign, signature of the grantor, and signature of a notary. The grantee, or recipient of the property, generally does not need to sign.

The next step after obtaining the right form is to of course to fill out the quitclaim form. The sections needing information are usually identified using underlined or blank areas to signify where to enter the needed information. It can be filled in using hand writing or typed in. Many forms available for purchase allow you to fill them out before downloading, online. The common or street address, and grantor and grantee are easily filled out. However, additional thought should be put into how much consideration, as discussed above, how title should vest, also discussed above, and filling in the correct legal description.

After filling out the quitclaim form, the form must be notarized and the grantor signature must generally be witnessed. This is easily accomplished. Banks generally have a notary available at no charge or for a small charge, so simply go to your bank to get the quit claim deed form notarized. Some people also have notaries at work. If you work for a law firm or your company has a legal department, it generally always has a notary employed. Mail box stores also have notaries who will notarize your signed quit claim form for around $10.

Once the quit claim form is filled out, signed, and notarized, you should record it at the local county recorder’s office in the county where the property is located. This is also easily done. You can go to the recorder’s office to record it for yourself. There is no expertise required. A small form will need to be filled out, and then you give it to a clerk to be recorded. There is a small recording fee, and in some counties, there will be transfer taxes. The recording fees and transfer taxes are generally based on the amount of consideration listed on your quitclaim deed. There is no requirement to record the deed for you to own the property, but it is in your best interest. Until your quit claim deed is recorded, it is not in the official records. If you lose your paper quit claim deed, evidence of your title will disappear with the paper deed if not recorded to memorialize the transaction. By recording, you also prevent another party from recording an interest prior to you doing so. Quitclaim deeds can be recorded electronically as well. Simply pay a small amount to most title companies and they will to record your deed electronically, remotely. Real estate lawyers sometimes can also file electronically. In most counties, you may also mail in your deed and fees for recording. They will mail the stamped recorded deed back to you once recorded. On such an important and valuable transaction, it is recommended you make a trip to the county, record it in person, and get your stamped copy immediately.

Some people may want to use a professional title company or real estate attorney to help advise you how to hold title, determine the correct amount of consideration, and list your legal description correctly if you do not feel comfortable, but it is not difficult to make these decisions yourself, at little cost.

A quitclaim deed is generally used to transfer title from owners into a trust from whatever form of title vesting was held previously, e.g., joint tenancy, individual ownership, community property, etc.  The same parties retain control, but they now control the trust, which controls the property, rather than controlling the property directly. Obviously, there is no need for warranties or protections against ones self, so using a quitclaim deed is ideal.  Quitclaim deeds are also useful to add a spouse to property title due to a marriage or to remove a spouse from title due to a divorce. A quitclaim deed is a great way to convey partial or full ownership in real estate to a family member, maybe a child, parent, sibling, or more distant relative. A quitclaim deed is also useful for the executor of an estate to convey title to an heir or family member.

A quit claim deed can also be used for property sales between unrelated parties, but caution is encouraged. When buying from an unknown party, it is generally wise to use a professional, e.g., a real estate lawyer, escrow company, or title company, to do an exhaustive title search, have the seller provide title insurance to the buyer, and utilize a grant or warranty deed for greater warranties. With all that said, some are capable of doing the needed research on their own, and there are many creative ways to purchase real estate from someone you do not know, and a quitclaim deed could be useful. For instance, if buying from a distressed seller of property, a quitclaim deed may be useful in a number of circumstances. A distressed seller may utilize a quit claim deed to transfer real estate to a buyer who wants to take over payments for the existing mortgage, allowing the seller to walk away and avoid foreclosure, and keeping some of their credit intact in the process. Another example could be an equity share investment, when an investor purchases part of a distressed property using a quit claim deed to save the owner from foreclosure, and hopefully providing the buyer a good investment in part of a property.

While there are exceptions, some of which are described above, quitclaim deeds should generally be used for easy, cheap, and quick title transfers between known and trusted parties.

A number of types of deeds are commonly used to transfer partial or whole real estate title. A quitclaim deed can be used, a warranty deed, a grant deed, a tax deed, and a special warranty deed, as well as several other lesser used deed varieties.

A deed of trust is similar to a mortgage and does not transfer real estate title.  Deeds of trust often create confusion by use of the word deed, since they are not deeds that transfer title to property at all. There are legal differences between a deed of trust and a mortgage, the most pronounced of which are different methods used to foreclose on property, but both essentially create liens on property created by a loan secured by that property, rather than a deed used to transfer such property.

A quitclaim deed transfers whatever rights the existing owner or grantor has in the real estate.  It includes no guarantees to clear title. Quitclaims provide no guarantees that title is clear of encumbrances, such as tax liens, mortgage liens, mechanics liens, etc, or that there are no unidentified owners on title in addition to the grantor. Whatever the grantor owns is what the grantee receives. Quitclaim deeds are the easiest, fastest, and lowest cost deeds to utilize, and require little professional help, described in greater detail in the section on how quitclaim deeds work. Quitclaim deeds are often referred to as quick claim deeds or quit deeds erroneously.

A warranty deed is nearly identical to a grant deed. Warranty deeds and grant deeds include warranties as to what level of title a grantee will receive, and are usually issued using a lawyer or title company, depending where the property resides. A warranty deed comes with six covenants:  covenant of seisin, showing the owner has ownership and control of the property, covenant of right to convey, the owner has the right to transfer his or her interest in the property, covenant against encumbrances, indicating that title comes with no encumbrances such as loans or other liens, covenant of quiet enjoyment, other parties have no legal claim to the property, covenant of warranty, the owner will guarantee the grantee’s rights if a third party tries to file a claim against the property, and covenant of further assurances, indicating the owner will do whatever is reasonable to perfect title if there is an imperfection found after the conveyance. If purchasing real estate using a realtor and escrow process, you generally get a warranty deed or grant deed, and title insurance as a further guarantee of clear title. The title search, title insurance, escrow process, and the like all cost time and expense when using a warranty or grant deed. Two major types of warranty deed exist, general warranty deeds and special warranty deeds. A general warranty deed has greater protections or warranties than a special warranty deed.

A tax deed is often utilized by tax authorities to transfer real estate. State and local tax authorities, as well as the IRS may place a tax lien on a property, and eventually, if the taxes are not paid, can transfer title to the real estate using the tax lien. The most common use for tax liens is when a county liens a property for unpaid property taxes. States like California auction real estate with unpaid county property taxes after a predetermined number of years. Other states like Arizona sell tax liens to private investors in tax lien auctions, rather than transferring the property itself. The new lien owner can then obtain the property if the taxes, now due the investor, stay unpaid for a predetermined period of time.

There are other types of deeds, less often used. One is a trustee deed. A trustee deed is used to transfer title when the grantor is a trust. Another one is a sheriffs deed. Sheriff’s deeds are used to transfer title when property is transferred to satisfy a judgment where monies are owed. A gift deed is used when a property is gifted with no consideration in exchange for the property. A deed in lieu of foreclosure can be used to convey property to a lender to help avoid foreclosure. An executor deed or administrator deed can be used in probate or inheritance situations.

While quitclaim deeds offer less guarantees, they are very simple, quick, and inexpensive to use. They are best suited for certain types of transactions, when the parties know each other or have a close association. Some examples of outstanding uses for quitclaim deeds include adding a spouse to title after marriage, or removing a spouse from title due to divorce, changing title vesting from tenants in common to community property or another form of title vesting, transferring a piece of real estate to a family member or investment partner, inheritance or probate conveyances, and transfers from individual ownership into a trust or corporation. Warranty deeds and grant deeds are best suited for purchases from an unknown party, where more guarantees are desired to ensure the grantee is purchasing exactly what they think the are purchasing. The section on common uses for quitclaim deeds provides more information on applications for quitclaims.