If you haven’t dealt with one before, the concept of a quitclaim deed might be unfamiliar to you. According to Legalzoom.com, “a quit claim deed transfers a seller’s interest in a property to a buyer. Essentially, it allows a seller who owns a building or other property to convey their entire interest in that property to the buyer.”
These deeds are commonly used among family and friends, as they rely on a level of trust between the parties involved.
For many recipients of property through a quitclaim deed, the question arises: can they sell it afterward, and if so, how? While using a quitclaim deed to transfer property is perfectly legitimate, there are several factors to consider when selling the property later on. We recommend consulting with a lawyer or legal expert to ensure you grasp any potential risks before proceeding with any decisions.
Here’s a brief overview of what you should keep in mind when selling a property with a quitclaim deed, particularly with regards to Sell Quick California.
What is a Quitclaim Deed?
Firstly, let’s clarify the nature and purpose of a quitclaim deed.
A quitclaim deed facilitates the transfer of a seller’s interest in a property to another party, bypassing the conventional sale process. Typically, this transfer occurs without a formal sale or the exchange of money.
Often utilized for gifting property to relatives or spouses, a quitclaim deed streamlines the paperwork associated with general or special warranty deeds.
However, as noted by Legalzoom.com, unlike these other deed types, a quitclaim deed lacks buyer or recipient protections. This absence stems from its omission of the requirement for sellers to demonstrate their property interest.
Consequently, a quitclaim deed doesn’t assure the property’s ownership by either party. Although purchasing a home via a quitclaim deed remains feasible, most buyers prefer the safeguards provided by traditional sales.
Quitclaim deeds disregard third-party claims on the property, such as liens or encumbrances. Essentially, they offer no buyer protection regarding the property’s legal ownership status.
Opting for this deed type could result in discovering later that the seller lacked the legal right to sell the property. While advantageous for sellers, some buyers deem this arrangement less than ideal, preferring a more comprehensive and definitive agreement.
Selling a Home Using a Quitclaim Deed
Considering the limited assurances and safeguards provided by a quitclaim deed, it’s understandable why many buyers might hesitate to accept this form of deed. Typically, a quitclaim deed is suitable for scenarios involving the transfer of property to:
- Family members
- Friends
- Spouses or soon-to-be ex-spouses
- Trusts
Despite the advantages of expedited transactions and reduced paperwork, utilizing a quitclaim deed exposes the buyer to certain risks. Consequently, persuading most potential buyers to engage in a transaction involving a quitclaim deed may prove challenging.
I Purchased a Home Using a Quitclaim Deed. Can I Still Sell?
The positive news is that despite its potential drawbacks for many buyers, you can still proceed with selling the property in a conventional manner. The title has already been transferred to you.
While a quitclaim deed affects ownership and the name on the deed, it does not impact the name on the mortgage. Therefore, it may still be necessary to transfer the mortgage into your name before attempting to sell the house, if not already done.
Although a quitclaim deed lacks the comprehensive protections and assurances of a standard or warranty deed, it remains a legally viable method for buying or selling a house in most cases. However, it’s typically most suitable for transactions between trusted parties, such as family or friends. Consulting with an attorney or legal expert can help you determine if this approach aligns with your circumstances.
Due to the inherent lack of protection, persuading a buyer to accept a quitclaim deed may pose challenges.
Sell Quick California offers homeowners a seamless selling experience, regardless of the deed type. Our agents specialize in purchasing properties with quitclaim deeds and can facilitate a quick, as-is sale.
Your sale could be finalized in as little as seven days, and you won’t need to fret about repairs, staging, or real estate agent fees. Skip the complexities of a quitclaim deed and sell to Sell Quick California!