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What Is a Quit Claim Deed?

Posted on in Real Estate

Florida real estate attorneyIn a residential real estate transaction, the deed is the legal instrument by which real property is conveyed. Put simply, the deed is the paper that shows who owns the house. What you may not be aware of is that there are different types of deeds that offer varying levels of security to the buyer. At the very bottom of the list is the Quit Claim Deed. If anyone offers you this type of deed, you might want to rethink your decision to buy.

In a Quit Claim Deed, all the seller is promising to give you is any ownership interest the seller may - or may not - have over the property being sold. It guarantees very little and could open you up to all manner of unpleasant surprises in the future. There is enormous risk involved in dealing with a Quit Claim Deed. Our attorneys can help guide you into a much safer real estate purchase. 

What Promises Does the Seller Make in a Quit Claim Deed?

The short answer is, “almost nothing.” When using a Quit Claim Deed, the seller is not even offering any guarantee that he has any ownership interest in the property he is selling you at all. Quit Claim Deeds are almost exclusively used when there is a serious title search issue and the possibility of other valid claimants cannot be ruled out. 

All the seller is promising in a Quit Claim Deed is that if they do happen to own the property or any portion of it, they will transfer their share of interest to you. It could turn out that the seller has absolutely no claim to the property he is trying to sell you at all. 

What Are the Risks Involved in Using a Quit Claim Deed?

The main risk is that after paying the seller, you will ultimately get nothing in return. You could move into your new property, or lease it to a tenant, only to have the true title holder show up out of the blue and run you out. Or, you could find out that your new property is buried under so many encumbrances that it will be of little use to you after all. It could turn out that you are left with no valid claim to the property at all. 

The risk of dealing with Quit Claim Deeds is so high that it is often best avoided. There are much more secure types of deeds available. 

Call a Broward County Real Estate Lawyer

Law Office of Miller & Miller, P.A. is skilled at guiding clients through highly secure real estate transactions. Our experienced Wilton Manors real estate attorneys will carefully review your deed to make sure your purchase is as safe as possible. Call 954-981-9301 for a free consultation. 

 

Source:

https://www.investopedia.com/articles/personal-finance/051614/five-things-know-about-quitclaim-deeds.asp

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