A quit claim deed is used to transfer property, such as a home or land, between parties. It is a legal, less expensive and quicker way to transfer property, especially in amicable circumstances. A quit claim is filled out by the grantor (the person giving up the property). No attorney is required, but the quit claim does need to be notarized and filed with the appropriate county clerk to be legal and binding.
After a Divorce
A quit claim deed is most often filed after a divorce when one party agrees to transfer rights to marital property to the other. Many times this includes a house shared by the married couple. The quit claim is often used in undisputed divorce and basically states that the grantor is giving up all rights and responsibilities to the property in question, usually to the ex-spouse.
Transfer of Property
A quit claim is often used by an executor of someone's will to transfer property to legal heirs after someone's death. The quit claim is typically prepared along with a will and used to hold property in trust until the reading of a will, where the executor will then transfer the property to legal heirs and file the required quit claim.
Life Estate
Someone can use a quit claim deed while still alive. This is similar to a transfer of property to heirs, except it allows the grantor the right to use the property as long as he is alive, after which time property is transferred to the heir or heirs without need of an executor.
After Marriage
Quit claim deeds can be used after a marriage, basically in the same way they can be used after a marriage. An ex-spouse can fill out a quit claim granting her share of a marital property to ex-spouse's new spouse rather than to the ex-spouse.
Exceptions to Quit Claim
It is not a good idea to use a quit claim between seller and buyer. In these instances, a clear title or a warranty deed is preferred. A quit claim should also not be used to transfer property to avoid losing it in a bankruptcy. While quit claim deed transfers are legal, a judge can overturn a transfer used for an illegal purpose.
