Deeds are legal documents that transfer interest in land from one person to another. Quitclaim deeds only transfer the grantor’s rights to the property and do not guarantee ownership. General warranty deeds come with six promises, while release deeds are simpler and useful when there is a cloud of title. Quitclaim deeds are commonly used in divorces and intra-family transfers.
A deed is essentially a piece of paper that transfers interest in the land from one person, called a grantor, to another, called a grantee. It is essentially a real estate contract. To be legally effective, it must be signed by the grantor and describe the land being transported. A quitclaim deed, sometimes erroneously referred to as a “quick claim deed” or “quitclaim deed,” is a type of deed. There are also warranty titles, both a special warranty title and a general warranty title. The deed transfers to the grantee any interest the grantor has in the property.
There is an important limitation to this type of writing. Because it only transfers the grantor’s rights to the property, it does not guarantee that the property is directly from the grantee. If other people interested in the property have not signed the deed, then their rights are not affected by this document, they still retain their property. In most cases, the signed quitclaim deed is a simple and effective way to relinquish all interest in a property.
Another popular type of deed is the general warranty deed. Compared to the general warranty deed, the release deed is relatively simple. While the deed only transfers whatever interest the grantor has, the general warranty deed, by contrast, comes with six covenants (or promises): (1) covenant of seisin: that the grantor does own property, (2) covenant of right to convey: that the grantor has the power to convey the interest in the land, (3) covenant against encumbrances: that the title comes without encumbrances such as mortgages or encumbrances, (4) covenant for quiet enjoyment: that third parties not have any legal claim to the title, (5) warranty agreement – grantor will support dealer’s rights in the event a legal claim is made to the property by a third party, and (6) additional warranty agreement – that grantor will do what as is reasonably necessary to perfect the dealer’s title in the event there is a blemish.
While you may be more certain of what you are getting with a general warranty deed, a release deed may also be a good option. It is particularly useful when there is a cloud of title, when someone else may claim ownership. While these deeds don’t necessarily give you an interest in free and clear ownership, they do at least give you the interest the grantor had.
Alternatively, when there are no concerns about other property claims, the relinquishment is a simpler way to pass interest on. In fact, it is frequently used in intra-family transfers. The quitclaim deed, for example, is commonly used in divorces. If the family home is not sold to another party with a shared income, then this type of deed is a real estate necessity. When one of the parties involved in the divorce gets the home, the other party must relinquish their interest in the home.
There are other uses for the resignation deed. If siblings inherit a family home and share ownership with other brothers and sisters, a relinquishment can be used to sell the home. One sibling can sell his share of the house to another and use a relinquishment to surrender all rights and interests in the property with the sale.
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