A quitclaim deed is a legal document. It is primarily used in the real-estate sector to transfer property interest from one person or the entity (termed as grantor) to the another (called grantee). The deed conveys only the interest of the grantor at the time of the execution of the deed. It makes no guarantee that the grantor is the actual owner of the property. It means that the grantee has no legal recourse against the seller if a problem with the title arises in future.
Quitclaim deed is not preferred when purchasing the property from the unknown party in the traditional sale. However, a quitclaim deed helps in the family transfer of property (from one party to another). A spouse could also use the deed to add the other spouse’s name after marriage or estate planning.
The title companies may ask you to execute a quitclaim document to clear any cloud on the title before issuing the title insurance. Before funding loan, the lenders may ask the spouse who will not be on loan to complete and record a deed quitclaiming their interest.
Scenarios in Which Quitclaim Deed is Frequently Used
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Property Transfers Between the Family Members. It is the most popular use of this deed. If you want to transfer property to and from family members, use the quitclaim deed form Texas at forms.legal, and it can be created online. Such transfers often include between the parents and children, the siblings, and the family’s close members.
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Adding or removing the name of the spouse from the title. Whether due to divorce or marriage, as a property owner, you can use the quitclaim to add the spouse to remove the spouse’s name from the property title.
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Name changes. The owner can change the name during the ownership. Any natural person or entity can legally own the real property. Although there is no need to alter the information mentioned in the title, however, when the owner changes the name, it must reflect in the title too. Quitclaim deed is commonly used to bring about these changes. There could be several reasons for the name to change; the most common reason is a marital status change.
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When the legal ownership is transferred to an LLC or Corporation, the deed is used. It is common to hold real-estate property in the protection of LLC and Corporations. Quitclaims are preferred to transfer the ownership to these entities. The deed is also frequently used to make the corporate transfers as it is a transaction between the related entities.
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Quitclaim deed is also used while transferring ownership to a Trust. The way corporate transfers take place transfers to the Trust is done in the same way. Estate planning which deals with property means to carry on from one generation to the other, involves an initial transfer from family member to a trust.
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Removal of Cloud on Title for Title Insurance is also done with Quitclaim deed. If a title company finds a cloud on the title during title insurance, it must be cleared. It means that someone has an interest in property that has not been accounted for and is causing a break in the chain of title. It is typical for the company insuring the title to require a person in the question to quitclaim his interest in the property before issuing the title insurance.
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How to Create a Quitclaim Deed Online in Texas?
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