When choosing the correct deed for the transfer of titles, the types should be considered. There are two types-the quitclaim deed and the warranty deed, although the quitclaim deed is popular. Popularity is never the best strategy when making such decisions.
It appears dubious
Remember the quitclaim deeds guarantees nothing how then can a grantor claim sole title, ownership to a property in a chain of title. Many title examiners will demand additional documentation duly signed by guarantors if there isn’t anything to hide, why not use a stronger document? The special warranty deed for instance.
The “subject to” verbiage
Contrary to popular beliefs quitclaims deed shouldn’t be used solely because properties aren’t free and clear “from liens” that is a misconception. Other deeds like the warranty deeds do not say a property is free and clear instead they have a subject section which lists certain elements that are part of the transfer something in this format:
This “subject to” verbiage guarantees the grantee about what he is getting involved in during the purchase of any title, something quitclaim deeds surely lacks.
- The prospect of purchasing real estate or transferring titles of properties involves a proper choice of deeds. Visit forms.legal today and fill the required forms for getting a free quit claim deed in Texas, Virginia, Washington or any other state in USA.
When deciding on the type of deed to go through with, remember that the quitclaim deed provides no guarantee to the title. The grantor is like; yeah you may have my property but you must understand that I will not be responsible should something go wrong in the unforeseeable future except such future are only clear to one person that is the grantor, so starting off the reasons include:
Lack of guarantees
The most obvious reason, although a quitclaim deed is simple and looks easy in transferring titles, it has often been assumed to be a quick claim deed it doesn’t provide a guarantee or assurance. Many people, limited liability companies, husband and wives might advise on the ease of transfer with the added excuse of the needlessness of a strong guarantee in their situation but that shouldn’t be the sole consideration.