What is a Quit Claim Deed?

You may have seen the term before, and asked yourself, what exactly is a Real Estate Quit Claim Deed. You probably already know that a 'deed' is a document that transfers the title of a piece of real estate from one owner to another. You may not have known that although a quit claim deed also transfers ownership, the owner does not offer any guarantee about the title to the new owner. Usually, grant deeds or warranty deed are used to transfer real estate, which come with guarantees the the title is legal and valid.

Most of the time, a quit claim deed is used to clear up problem with a title, or when someone want to use a quick and easy way to relinquish all rights to a property. Sometimes they are used by couples that are divorcing, or when a title has a previous error associated with it that 'clouds' the ownership rights.

As always, anytime you are dealing with a major transaction involving a mortgage loan, and properties that have significant monetary value, it's always best to have someone that known and understands the various implications of using a quick claim deed as opposed to a warranty or grant deed before signing one.