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Everything You Need to Know About the Quitclaim Deed in Colorado
New to the technical real estate world and looking for the best document to facilitate the transfer of your interests in real property effortlessly, and without any warranties? Welcome to the world of quitclaims in Colorado.
What is a quitclaim deed?
A quitclaim deed form in Colorado, quitclaim, quitclaim deed or a non-warranty deed is the legal instrument used to convey or quit your interests in named real property like a building or land. The conveyance of the interests or rights in property is often to an organization or a person. In this transfer of rights, the party that quits/ transfers their interests in property is the grantor while the recipient of the rights is the grantee.
In the real estate world, the quitclaim form is seen as the fastest and often the most efficient instrument to ensure the transfer of rights over real property. For this reason, some people will mistakenly refer to the document as the quick claim deed, an incorrect name for the document.
What are The Uses of the Quitclaim?
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Since the use of this deed means no warranty on the property the grantee receives, you might be wondering if it makes any sense to use it, right? Well, the simple answer is Yes. In some limited circumstances, you absolutely need this non-warranty deed. These circumstances include:
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When going through a divorce proceeding and you or your spouse wishes to give up their interest in a property jointly owned by the couple.
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When a parent wishes to transfer their rights to a property (home or land) to their child. Doing this will reduce future legal risks
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When investors wish to transfer property among themselves but using a different corporate name
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When eliminated clouds/ defects from an earlier title on a property
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When transferring your interests in real property into a living trust.
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What is the difference between a non-warranty deed and a warranty deed?
You might have heard that with the quitclaim, there exists no warranty to the named property’s title. In this case, the property title represents the rights to the ownership of the property and the owner’s ability to sell/transfer their interests in property through a deed. In a nutshell, it means that the quitclaim does not give the grantee or the recipient of the property rights actual promise of protection from title issues such as being taken to court because of a pre-existing superior title. In this regard, you are accepting the interests in the property as-is, and the grantor may or may not own the property. For these reasons, the quitclaim is a non-warranty deed.
On the other hand, you have the warranty deed which is the document used to facilitate the transfer of an interest in real property following the sale of the property. In this case, the transfer of rights follows the recipient’s purchase of the property. The warranty deed shows that the grantor is the actual owner of the property and they own all the interests in the property. It also notes that at the time of signing the document, the property is free of liens.
What are the requirements for a valid quitclaim form?
There are numerous templates for quitclaims and free deeds online, and you might be easily confused when trying to choose one over another. However, we recommend choosing a state-specific printable PDF blank form. In this case, you would have to download a free Colorado quitclaim deed form.
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Once downloaded, enter the following details or ensure that it meets these requirements:
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The document must have the names, mailing addresses and the counties of residence for the grantor and the grantee.
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The value of the consideration (money) paid for the property
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Actual/ formal description of the property, including its exact address
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The identification number of the assessor if there is one
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The date of the transfer
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The grantor’s acknowledged signature
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Also, the correct language should be used. In this case, the document should not have terms like warranties to title
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Once executed, the statutes, in section C.R.S. 38-35-109 of the laws indicate that the deed must be recorded in the county clerk’s office.
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The state also adheres to the Rare-Notice statute for recording. This statute means that should a document be signed/ acknowledged, but not in the public records, and then the original grantor (named above) ends up re-conveying the property to a bona fide grantee (person buying the property) who records the new quitclaim, then this bona fide grantee is the person who ends up with complete rights over the said property. Therefore, the quitclaim needs to be recorded as soon as it's signed.
Limitations of the Quitclaim
First, the quitclaim will not guarantee you that the property being transferred is without liens or debt. It also doesn’t guarantee whether or not the property is owned by someone else
The deed doesn’t guarantee that the grantor has actual interests in the property under conveyance.
If selling the property to a third party, this deed is insufficient, and you have to use a warranty deed because the latter is the only document that will guarantee the property’s clear title, as well as the fact that there are no lines on the property
The other thing you should know is that the quitclaim will not change your mortgage responsibilities. This means that if the property you’re giving up rights to ends up with your spouse, your name still appears in the mortgage and you are liable for the debt, Undoing the quitclaim is difficult and to transfer interests back to the grantor, you will have to create a new deed to transfer the interests back. This is a long and complicated process.
Do you need the quitclaim to transfer your interests on a property named in a rental lease agreement? Download our free quitclaim deed form online today to get started. The free deed form is accessible from Denver, Boulder, Colorado Springs, Aurora, Pueblo, Fort Collins, Aspen and every other city in Colorado.