If you’re like most people, you’ve heard of a quitclaim deed—but what is it, and what does it have to do with property ownership if you buy a home in Long Beach?
What is a Quitclaim Deed?
A quitclaim deed is a type of property deed that defines the property’s ownership. It’s one of several types used to transfer ownership, and it’s called a quitclaim deed because the previous owner relinquishes (quits) any future claim to the property.
It also includes rights that come with home ownership, like membership in a homeowners association or the ability to use community facilities that the homeowners association manages.
Why Are Quitclaim Deeds Used?
Sometimes quitclaim deeds are used in divorce settlements when both parties own the property and one spouse is giving up his or her part of the ownership. They’re also used when one owner “buys out” another as part of a business transaction. Even when a parent transfers ownership of a property to his or her child, a quitclaim deed can be useful.
These types of deeds can be used in any situation that only involves the transfer of ownership. They’re not usually used in traditional real estate sales, though, because they don’t guarantee anything but the fact that the previous owner relinquishes his or her claim to the property.
What a Quitclaim Deed Isn’t
A quitclaim deed isn’t a general or special warranty deed that’s used to warrant the good condition of the title. General and special warranty deeds contain covenants that protect the new title-holder from claims and agree to compensate the new title-holder from loss he or she will incur if someone successfully challenges the title.
A general warranty deed also contains covenants that show the new title-holder that he or she can purchase, possess, and enjoy the property it covers. A special warranty deed can address defects that arose when the seller owned the property, if there were any.
Do You Need to Talk to a Real Estate Agent About Buying or Selling a Home in Lakewood?
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