There are many situations where a quitclaim deed can prove useful for real estate owners looking to make changes to their property’s title. Below we’ve detailed some of the most important reasons you should consider using a quitclaim deed.
Transfer Property Between Family Members
One of the most common reasons to use a quitclaim deed is to transfer property between members of the same family. This allows you to easily transfer your ownership rights to your children, a sibling, or another close member of your family if necessary.
Add or Remove a Spouse from the Title
Quitclaim deeds can be utilized to add or remove names on a property’s title. This can make them a very effective tool to use following a marriage or divorce to update the information on the title. This can be very important if homestead rights exist in your state and you require the consent of your spouse to sell or transfer the property.
Correct a Title Defect
If there is a defect in your title a quitclaim deed can be used to correct it. This is useful to save time and costly fees on the legal processes necessary to update and adjust the recorded data on your property.
Change the Owner Name on a Title
If the owner’s name changes for any reason a quitclaim deed can be used to make the adjustments on it. This might be due to personal circumstances or (if the property is owned by a business or LLC) to make sure it is up to date with the current name of the entity that owns the property.
Transfer Ownership to a Trust
A quitclaim deed is highly practical for estate planning purposes and it can be used to transfer ownership into a trust for tax or personal reasons. This is useful for both corporate owners of properties and those planning to pass on their assets to their heirs.