A quitclaim deed is used to transfer a property owner’s interest in the property to another person without any warranties or guarantees as to the condition of the property. It is a simple way to transfer property and can be used to:
- Transfer property to or from a living trust;
- Transfer property to a spouse in a divorce;
- Clarify how property is owned among property owners;
- Clarify property ownership among heirs;
- Transfer one property owner’s rights to another property owner;
- Transfer all or a part of your property ownership to another party;
- Make changes in the way that owners hold title to the property; and
- Correct any mistakes in previously recorded deeds.
Quitclaim deeds are commonly used when someone wants to give rather than sell his or her real property. They may be used in situations where parents wish to gift their property to heirs or in the case of divorce when one spouse quitclaims his or her interest in a property as part of a settlement agreement.
Quitclaim Deed Risks
While a quitclaim deed provides an expeditious way to transfer real property, there are some risks involved. First, a quitclaim deed will not offer any guarantees as to the title of the property. This means that there is no assurance that the individual conveying title is in fact the owner of that property or that the title is clear. There are also no due diligence requirements for a quitclaim deed in Arizona.
Since quitclaim deeds are irrevocable, it is critical that they be prepared and executed properly. Having an Arizona real estate attorney execute and record your quitclaim deed is the best way to ensure that you thoroughly understand what the conveyance process entails and that the legal formalities required for deeds are met.
Our real estate attorneys represent parties on either side of real estate and financing transactions, including buyers, sellers, landlords, tenants, lenders, borrowers, trustees, guarantors, shareholders, partners, and others. We advise, structure, negotiate, and document a variety of real estate and financing transactions, including leases, purchase and sale agreements, financing agreements, and development agreements for a variety of commercial and residential projects. Contact us today and learn how we can help.