First Known Use of quitclaim deed
Financial Definition of QUITCLAIM DEED
What It Is
A quitclaim deed is a document that transfers interest in a property to another person.
How It Works
For example, let's say John Doe and Jane Doe are married and live in a house that they own together. John and Jane decide to get a divorce. John gets the house; Jane gets the retirement accounts. As part of the divorce transaction, Jane must sign a quitclaim deed to John Doe so that she officially gives him her half of the house. Through this, the country or municipality removes Jane's name from the title to the property.
It is important to note, however, that Jane may still be liable for the mortgage payments on the property, even after the quitclaim deed is executed.
Why It Matters
A quitclaim deed transfers interest in a property with a simple signature, making them very convenient. However, it is important to note that a quitclaim deed does not require the person signing it to prove that he or she has an interest in the property in the first place. Thus, a quitclaim deed could give the receiver of the deed no guarantee that he or she rightfully owns the property being transferred.
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