A Quit Claim Deed can be used for a variety of reasons, but in general it is used to transfer property from one person to another. Quit Claim Deeds are often used for passing the rights on a piece of property to a spouse or ex-spouse, giving the property to another person such as a family member, transferring the property to a trust, or correcting the spelling of a name or the wording on a previous deed. When entering into a Quit Claim Deed, it is best for both parties and a lawyer to meet in order to discuss the terms and make certain that everything is in order. It’s not often that money changes hands in these transactions, but it can happen. When writing up the agreement, keep these important points in mind.
The first thing that should be included on a Quit Claim Deed is the address of the property and the condition that it is in. It’s important to be honest about the condition at this point. Any property transferred via a Quit Claim Deed will be transferred “as is”. Also, if the legal description is not complete, the court can reject it. So it is best to have the correct address and property description. The next important thing to have on the Quit Claim Deed is the date at which the transfer will happen. This can be set at any time. It could be set for a few weeks from the date when you are setting up the deed or it can be at the time of your death. This is entirely up to you. Although if this is part of an estate plan, some states prefer that you use a transfer on death deed. Look into your state’s laws in order to determine that.
Next, the parties involved should be listed on the Quit Claim Deed. It is important at this point to make sure the spelling of the names and the wording is correct as it will take another Quit Claim Deed in order to fix this problem. Businesses, trusts, or individuals can transfer properties to one another and can either be the grantor or the grantee. The tax obligations on the property will also transfer to the person, trust, or organization being given the property. It should be clearly spelled out in the Quit Claim Deed that the tax obligations are being transferred to the person accepting the property. If the property is going into trust, then the money in the trust should be earmarked for the tax payments required on the property.
It’s possible that mineral rights will stay in the name of the grantor even after another person has taken over the property. If oil or another mineral is found on the property, it will still belong to the original owner of the property and it will be their right to mine it and handle it as they see fit. It is also possible that if a mineral is found on the property that the person who signed over the property in the first place will also sign over the mineral rights as well. As previously stated, when entering a Quit Claim Deed, make sure that a lawyer looks it over to make sure everything is in order. Keep these factors in mind and your Quit Claim Deed should be successful.
Here is our collection of 47 Free Quit Claim Deed Forms & Templates,