fbpx

3 Facts About Quitclaim Deeds

3-facts-about-quitclaim-deeds

Quitclaim Deeds

There are many different types of deeds when it comes to legal instruments. One common deed is a quitclaim deed. However, for many people this term is unfamiliar. Essentially, a quitclaim deed is a legal instrument that conveys interest from one party to another. It is a deed that a person is giving up, or “quitting,” their legal interest in a real property, such as land or a house. 

These are commonly used between two parties where trust is already built up. For example, this is frequently used between family members. There are also common misconceptions about these types of deeds. Let us take a look at 3 facts about quitclaim deeds.

A Quitclaim Does Not Clear Title

Quitclaims transfer real estate to other persons or parties without any warranty of title. A quitclaim offers whatever interest a person has to the other person, but offers no assurances that the title is clear. Because there is no warranty of title, a quitclaim should only be used between two people or parties that trust one another.

Quitclaims Do Not Remove Liens

Secondly, quitclaims do not remove any liens on the property. Any liens on the property are passed on. Essentially, you can think of the property being passed on “as is.” That includes the good and the bad, such as liens. Suppose there’s a state, federal, or judgement lien against a person’s name. If you remove that person’s name from the title, a quitclaim deed does not remove the lien. The lien sticks to the property. 

Quitclaims Do Not Remove Taxes

If you file a quitclaim deed it does not mean that you do not have to pay transfer taxes. In actuality, you are still required to pay them. This applies to every single property that is conveyed. However, the only way around this is if one of them falls under an exemption. 

Your Michigan Neighbors Are Our Clients

Now you know the 3 facts about quitclaim deeds! Quitclaims are just one of the many areas of expertise we offer at Venture Title Agency. Join thousands of Michigan home buyers and sellers who trusted Venture Title Agency to guide them through the critically important title-closing process. Ready to learn more? Contact us today!

what-do-title-agencies-do

What Do Title Agencies Do?

Many new homeowners will be introduced to brand new concepts during their real estate ventures. One of those concepts that may be confusing to inexperienced

Read More »