Warranty

• A quitclaim deed does not offer any warranties that the person giving the property to another person has the right to do so nor has full interest in the property. It does not even assure the receiver that the deed is valid, only that it eliminates the interest in the property by the person giving the deed. Some people have used to it transfer property before claiming bankruptcy. Accordingly, states have imposed time limits on transfers before bankruptcy filings.
  
  

Liens

• Giving a quitclaim deed to someone does not satisfy an existing mortgage or liens on the property. The person that is on the mortgage stills owes the financial obligation. The person that receives the property is liable for the taxes, utilities, liens, restrictions, easements or rights-of-way.
  
  

Joint Owners

• A common use of a quitclaim deed is during a divorce when a couple makes a transfer from joint ownership to one spouse. It can also be used to add a spouse after a marriage. Another example would be adding a child or other family member to a deed. This is sometimes done to give the family member more legal authority in case the owner becomes incapacitated in the future.
  
  

Use

• The use of a quitclaim deed is quick and inexpensive. It is often used during distress sales of real estate. A homeowner may not be able to keep the mortgage payments current and can arrange for a buyer to take over the mortgage payments and quitclaim the deed to the new owner. An investor might buy a portion of the property, saving the owner from foreclosure. A private owner might transfer his property to a business using a quitclaim deed for a quick sale.
  
  

Filing

• As standard paperwork, a quitclaim deed can be purchased from any business supply store or on the Internet. An attorney can also prepare one for an owner. There are several sections that must be completed. The first section deals with the name of the person giving the deed (the grantor), the address of the property and the name of the person receiving the property (the grantee). It also lists the amount of money exchanged between the two parties. The next section requires a legal description of the property. This information is on the original deed. Once the quitclaim deed has been completed, it must be witnessed and signed in the presence of a notary public, then filed with the county's register of deeds office. The filing fees vary between states and are sometimes based upon the amount of the sale.