Different real estate transactions require different types of deeds. Deeds are the legal documents that transfer property ownership between a buyer and a seller. A quitclaim deed transfers property ownership, but it doesn’t make any promises about the title. This means there could be a lien on the property or some other issue, but the seller doesn’t need to include this information in the deed. Quitclaim deeds may be easier to assemble, but buyers have the least protection of any real estate deed.
Types of Quitclaim Deed
There aren’t multiple types of quitclaim deeds, but there are similar deeds that also don’t provide the guarantees that a statutory warrant deed would. For example, a correction deed is designed to fix any errors, like an incorrect name on a deed. These deeds don’t transfer the property ownership. Instead, they just update the information. However, they can be used to add a spouse to the deed. If someone is giving away their property, either to a loved one or a nonprofit organization, they might use a deed of gift. These deeds can transfer real estate and money if the recipient isn’t paying for the property. A deed of release simply gives up a claim to a property. This is most common when a property owner finishes paying off their mortgage. The lender will then file a deed of release, indicating that the company has no claim against the property.
When is it Appropriate to Use a Quitclaim Deed?
Quitclaim deeds in Florida offer buyers the lowest level of protection, but they are a good option in some situations. Transferring property with a quitclaim deed is much simpler than the requirements for other types of deeds. When there’s trust between the buyer and seller, like if they’re close friends or relatives, quitclaim deeds work well. This can happen during a divorce settlement or when a homeowner sells to a relative. Using a quitclaim deed is also a good idea when a property owner transfers their personal property to their business or when setting up a trust as part of an estate plan.
Understanding how to change the name on property title deeds in Florida can be tricky. However, a quitclaim deed can be used to fix errors like typos or misspellings or to add people, like a new spouse, to the deed. In this case, the deed only updates the information, not transferring ownership.
How Can I Nullify a Quitclaim Deed?
When using quitclaim deeds in Florida, buyers and sellers should be cautious. Buyers usually will not be able to nullify the deed if they discover a lien or problem with the property after the transfer of ownership goes through. This is part of the risk of using a quitclaim deed instead of a statutory warranty deed.
The process can be fairly simple if both parties agree to nullify the quitclaim deed. Otherwise, it can only be nullified if used to transfer property illegally. If a buyer or seller believes their transaction was illegal, contacting an attorney is a good next step.
Are You in Need of Legal Help? Contact The Orlando Law Group for all Your Legal Needs
If you’re considering using a quitclaim deed to transfer your property in Florida, it’s a good idea to talk to an attorney first. Our team will determine which type of deed makes sense for your situation. Contact the Orlando Law Group to book a consultation today!
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Last Updated on September 3, 2024 by The Orlando Law Group
