Importance of Quitclaim Deeds
A quitclaim deed is considered different from all the other deeds. By completing the form issued, the property is transferred immediately to the second person. Unlike the traditional deeds, the quitclaim deeds do not involve any guarantees. Unlike the traditional methods of transferring properties, quitclaim deeds do not involve any kind of taxes. The most amazing benefit that someone can experience through quitclaim deeds is that they ensure that the property stays within the family.
Quitclaim deeds are used for the purpose of transferring a real estate property from a given person’s name to another name. The other method of transferring properties is used when the transfer is not among family members. The warranty deed is the other name given to the traditional method of transferring properties. The traditional method involves many guarantees to the person who is supposed to own the property after the transfer has been completed, something that is not observed when the quitclaim deed is used.
As stated before, quitclaim deed ensures that you have been protected from all the taxes involved in transferring properties. When you have decided to take the alternative route and transfer the property through the traditional method, you will be required to pay a tax that is based on the true value of the property. When it comes to quitclaim deeds you the transfer is considered a gift if the transfer does not involve any money. Furthermore, the importance of quitclaim deed is that it ensures that you have been protected from any mortgages after the transfer has been completed. All the costs are still under the initial owner’s name. The only time that you may be required to make a payment is if you were a co-owner before the quitclaim.
Also, quitclaim can be used in the event of a divorce. This is also done when the spouse is generous to give the property away. However, even though the property has been transferred to the next spouse, the obligations still lie with the initial owner. The couples are also able to shelter themselves from taxes.
Quitclaim also ensures that you have been provided with an opportunity to overcome probate. This means that it may be used to ensure that probate court proceedings of your heir have been prevented after your death. It is therefore used when a parent is terminally ill. If a parent used quitclaim deed to ensure that the property has been transferred to their child, the house will not have to go through probate court after the death of the parent. Probate is very expensive and time consuming.