Legal Requirements of a Valid Quitclaim Deed in Wyoming
A quitclaim deed mistakenly referred to as a quick claim deed, also goes by (correct alternatives) a quitclaim, a non-warranty deed, or a quitclaim deed form is a legally binding instrument that allows a property owner (grantor) to release their rights in that property to someone else (grantee). However, this real property conveyance misses something – it doesn’t come with any warranties. So, one of the big risks involved in this transfer is you might later find out that the grantor wasn’t the actual legal owner of the property, and the title might have grave issues like being a forged deed.
Because of the risk involved, the quitclaim is common with people who know each other well, and when a property owner wishes to gift their loved one's property or to simply transfer the property, with little or no consideration paid. Therefore, the quitclaim deed differs from the other types of real estate deeds like warranty deeds. The latter will give a warranty on the property title, and it also gives guarantees on the ownership of the property.
Note that that warranty deed is available as either a general or a special warranty deed. The general warranty deed assures a buyer that the title being transferred is without any liens or encumbrances and certifies that the grantor is the property owner. On the other hand, the special warranty deed tells the buyer/ grantee that the conveyed property title is clear, but it might have issues from before the grantor owned that property.
What makes a valid quitclaim deed?
For the validity of a quitclaim deed in Wyoming, you have to ensure that the prepared deed meets the statutory requirements. The deed is also to be prepared in a state-specific form that meets the requirements of the state, as well as the requirements set by the county where the property on conveyance is based. For the form, you can download our free Wyoming quitclaim deed form online. This form will also act as your template.
Note that this deed should have words showing that the deed is not giving any warranties of title and that the property is being transferred as-is. The deed should have the terms quitclaims and conveys.
For you to submit a quitclaim and have it recorded, it must bear the full legal names of the grantor and the grantee. Also necessary for identification is the grantor’s mailing address. If there is more than one grantee and grantor, all their names must be provided in the deed. Note that the deed is only deemed valid if it bears original signatures of the involved parties. The grantor’s signature is also required for notarization of the deed at the notary public.
The value of the consideration paid must also be mentioned in the deed,
The property’s full legal description is also required, as is the name of the county that the property is situated.
The date of the deed’s execution is also necessary.
When it comes to recording, keep in mind that the county recorder might refuse to record a quitclaim if it’s submitted without a complete and sworn Statement of the Consideration. This means that if the conveyance is tax-exempt, you have to submit a statement for the exemption of that transaction and the deed’s recording. The statement on exemption eliminates the need for the county assessor to reach out to the buyer for a confirmation of the exemption.
The recording of the quitclaim is important, and it’s provided for in the statutes. By recording the quitclaim, subsequent bona fide purchasers of the property and creditors will be aware of the change in ownership. Recording a quitclaim is a public declaration of interests in real property.
If someone else purchases and records the same property, the county recorder’s office will give priority of ownership to the quitclaim recorded first in the county public records. On the other hand, an unrecorded quitclaim is void against later property purchasers who purchase the property in good faith and pay a valuable consideration for the property.
When to use a quitclaim
Though risky, the use of a quitclaim is recommended when you are looking for a quick and simple process of transferring property. The quitclaim is also cheaper than any of the warranty deeds.
Some of the practical uses of a quitclaim include:
Family – the deed could be used by a parent granting their child property title, or when transferring real property between siblings
Marriage – if a spouse wishes to add their new spouse to their property’s title, they’ll need the non-warranty deed.
Divorce – in a divorce settlement, one spouse could use this deed to quit their claim to a marital home.
Estate planning – you can use a quitclaim to transfer your rights in property into a trust
Clearing a title defect – these defects are also called clouds. Using a quitclaim deed, you can fix an issue like a misspelled name or any other defects. Also on removing clouds, your title’s insurer might require you to create a quitclaim to clear an issue that affects the property’s chain of title. Clearing a cloud might also involve asking an individual with potential interests in the property to waive those rights.
Business – a quitclaim can be used to transfer property from a parent company to a subsidiary
Public Auction Sales – the deed could also be used in public or tax auction sales where property buyers assume risk on the defective title.
So, does a quitclaim sound like a legal tool you’d like to use to transfer property rights? Whether you have property in Jackson, Cheyenne, Casper, Laramie, Gillette, Cody, Rock Springs or elsewhere in Wyoming, you can download our free quitclaim deed form here to kick start the process.
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