People who own multiple real estate holdings may, at some point in their lives, give a home to someone else, such as a sibling, give it to a child or grandchild, or sell it. During these cases, the law requires the owner to execute a quitclaim deed to ensure that he will no longer claim interest in the property.

A quitclaim deed is a legal document authorizing title to property. It is used in the transfer of an interest in property to another person. By name alone, it means that the owner relinquishes any claim to a house or land. The person who relinquishes the claim is known as the grantor, while the person who accepts the property is called the grantee. The dealer bears all risk, especially if no warranties or guarantees are given on the title.

The deed, however, only transfers interest and does not guarantee whether the grantor actually has ownership rights to the property in question. Nor does it ensure that the property is free of debt.

To be enforceable, the deed must be signed by the grantor, after which a notary public must sign and seal it. However, in some states, the dealer and other witnesses must also affix their signature. In addition to a notary public, officials in states other than where the property is located can also certify the deed.

There are different situations in which a quitclaim deed can be of great help. For married couples, a spouse who was able to purchase property prior to marriage can add or remove their husband’s or wife’s name from the title deed. In a divorce situation, a couple can transfer ownership of their marital property to one of the spouses.

During a home sale, a quitclaim deed executed at closing transfers the property interest from the seller to the buyer. In other words, the seller totally gets rid of the property rights and guarantees that he will not come back to haunt her no matter what.

Another situation where the deed can be used is if a certain owner plans an inheritance or living trust. In this case, the deed transfers ownership of your home to a trust.

If it is a life estate, the grantor can still retain their right to own the property even after signing a quitclaim deed. Generally, a life estate gives the owner the absolute right to remain in the property until the owner’s death. Only after the death of the owner can the dealer obtain the right to own the property.

It is important to understand that once the deed is signed, it will be difficult to reverse or undo the deed. Only if the dealer agrees to relinquish claim to ownership can the previous owner repossess the property. Otherwise, the grantor must prove the nullity of the transfer.

A quitclaim deed is a valid option to relinquish property interests. But since this document does not guarantee transfer of title or property rights, it is best to accompany it with a warranty deed.