For any real estate transaction to be considered valid, each party must be getting something in return from the other party and in law; it is called consideration, a benefit each party gets from a transaction. Consideration is what binds real estate transactions between parties the seller offers his house in return for a sum of money from the buyer. Consideration is one factor that makes a deed regarded as valid or not.
Types of Deeds
In the sale or transfer of real estate, there are two types of deeds:
- The warranty deeds
- The quitclaim deed
Warranty deeds have been acclaimed to provide the highest degree of protection for real estate buyers and consideration is at its center. While quitclaim deed though makes no warranty of ownership, i.e. it gives ownership to others while not involving considerations. Sometimes it may be considered valid without cash consideration in its use.
Using a quitclaim deed in any real estate transaction essentially means giving up ownership interest at the same time, making no warranties to rival ownerships or title defects to the buyer.
Deeds require validity because something valuable has been exchanged for in the sales. Sometimes difficult when there’s no consideration, hence the two major legal routes to cement validity to a quitclaim deed mostly is either consideration using small amounts of cash or the “continuing love and affection” which is held by most state courts to be legally binding.
Some states like California don’t require quitclaim deeds to be legally recorded to be valid. All states, however, do require property deeds to contain some necessary elements used to ascertain its validity, things like names of the giver or grantor and the recipient or grantee as well as correct property description.
The issues of the validity of quitclaim deeds are never clear cut although it is simple, to transfer property this way. You should visit forms.legal to get a free quit claim deed form online for free.