What is a Quit Claim Deed?
A quitclaim deed form is often used in Florida to transfer title to real estate in situations where the person transferring the property does not want to be liable for any warranties of title. It is often used among family members, married couples divorcing or among related persons or business entities.
With a quitclaim deed, the transferor is not guaranteeing that he or she owns the property. The quitclaim deed only transfers whatever interest the owner happens to have. The primary difference between a Florida quitclaim deed form and a Florida warranty deed form is the language used to transfer title.
The language of conveyance for a Florida warranty deed will usually follow the statutory language by providing that the transferor is “granted, bargained and sold” the property to the transferee.
A quitclaim deed, by contrast, will usually use language that does not warrant title.
These seemingly minor differences in language can have significant consequences for both the transferor and the transferee. Like legal descriptions, the warranty language included in the deed must be exact. And, as with all deeds, it is important to draft the deed to meet Florida recording requirements. Failure to meet recording requirements could cause the document to be rejected or result in additional recording fees as a non-compliant document. In addition, defective quit claim deeds can cause title defects when not properly prepared.
We can prepare an attorney-prepared Quit Claim Deed for a cost of $350 with a 2-3 business day turnaround time. Download Order Form and email to info@theclosingcompany.net Please call 305-271-0100 with any questions.
Quit Claim Deed – Frequently asked questions and answers
What is a Quit Claim Deed? An instrument of conveyance commonly known as a “title transfer” of real property that passes any title, claim, or interest that the grantor has in the premises but does not make any representations as to the validity of such title.
Who will need to sign the Quit Claim Deed? The only person(s) that need to sign the Quit Claim Deed are the people GIVING title or the current owners. Whoever you specify as being the current title holder are the only parties that are required to sign.
Do the new owners receiving title need to sign the Quit Claim Deed? No, they do not. However,the new owners do need to be available to sign a Document Disclaimer for our records to acknowledge the document.
Will my property taxes go up? We don’t make any representations about property taxes. Please consult the property tax appraiser in your county for more information prior to transferring title .
Does a Quit Claim Deed provide any guarantees or assurances? No, it does not. A title search will not be done. A Quit Claim Deed only says to the new owner that if the signer has any interest in the property being transferred, they pass their interest to the owner. Only a Warranty Deed or title insured transaction provides assurance of ownership.
What about any open mortgages on the property? We don’t research for any existing mortgages, since a Quit Claim Deed is being requested. The Borrower needs to contact their lending institution regarding open mortgages.
How will I know if the property has any liens, judgments, survey issues or other problems? You won’t know. Since we won’t be conducting a title search or providing title insurance to verify ownership and using only the information the person ordering the document is providing, you won’t know anything about the title condition or if any title defects exist.
How do I know if taxes are paid before I take title? You need to check the tax records of the municipality before taking title if that is a concern. We do not verify taxes.
Do I need notify the Condominium Association or Homeowner Association about the transfer? Yes, you will need to contact them in advance and ask how this process works for the new owner. We do not provide assistance with this.
How will I know if any Condo/HOA fees are past due before I take title? You will need to contact the Condo/HOA Association and request that information directly from them.
Does the document need to be notarized? Yes, it will need to be notarized by U.S. Notary and witnessed by two people (one of the two witness can be the notary). Foreign notaries are not accepted.
What are the tax implications of a Quit Claim Deed? Both the old and new owners need to consult with a tax advisor or CPA before taking title. We do not provide tax or legal advice on the execution of this document.
Questions? Please contact us at 305-271-0100 or info@theclosingcompany.net for more information
