What Are Quitclaim Deeds?
Buyers beware of Quitclaim Deeds. Quitclaim deeds are used to transfer the grantors interests in real property to the grantee. What makes Quitclaim so dangerous is that the grantor may not have any real rights in the Real property to transfer to the buyer. Unlike ÃÂWarrant DeedsÃÂ or ÃÂGrant DeedsÃÂ, Quitclaim Deeds do not warrant that the grantor of the deed has any real rights in the property to transfer to the buyer. Because of this, the deeds normally employed in the sale of Rea estate are Warrant Deeds or Grant Deeds which are basically the same. Whether they are called Warrant Deeds or Grant Deeds depend on the authorities of the jurisdiction in which the transaction takes place.
Grant Deeds are used in most states and jurisdiction for the transfer of real property With a Grant Deed, the grantor or grantors must sign the document and their right to do so must be sworn to in the presence of a Notary Public who also signs the Grant Deed and affixes his or her seal thereto.
A General Warranty Deed affirms that the grantor holds clear title to the property and has the legal right to transfer interest in that Real property. A genuine General Warranty Deed contains six traditional forms of Covenants for Title that can be broken down as shown below
1) Covenant of Seisin & Covenant of Right to Convey. This covenant guarantees that the grantor has the legal rights to transfer to the grantee.
2) Covenant Against Encumbrances. This Covenant assures the Grantee that there are no legal encumbrances against the property other than those that have already been revealed to the Grantee by the Grantor.
1) Covenant of Warranty and Covenant of Quiet Enjoyment. This Covenant is the grantorÃÂs promise to protect the grantee against anyone that might come along and file legal claims against the property.
2) Covenant of Further Assurances. This Covenant protects the buyer against any error made by the Grantor during the transfer of valid title. There are states that donÃÂt recognize this Covenant of Further Assurance e.g. Ohio.
Quitclaims are used mostly to disclaim interest in Real property rather than in the sale of Real property. Quitclaims are used mostly for the transfer interest during legal procedures such as a divorce proceeding where the husband or wife transfer his or her interest in a home to his or her spouse.
Actually, no matter what type of deed being offered by the seller, the prudent buyer will hire a professional to perform a Title Search before purchasing Real Property.