Deeds are central to every real estate transaction, whether it is a purchase, inheritance, or gift. Only a properly executed and recorded deed gives you title to a property in Florida, but not all deeds do this in the same way. A Quitclaim Deed is a very particular type of deed that should only be used with the expertise and advice of an attorney. Learn why this is the case and how Farshchian Law can help.
What is a Deed?
First let’s start with the basics: In the simplest terms, a deed is a legal document used to transfer real property between two or more parties. You can pay every penny of the contract price for a property, but unless you are “deeded” the property (i.e., title is transferred to you), you have no legal ownership rights.
Moreover, a deed must meet certain requirements under Florida law to be effective—otherwise your purported ownership rights may be rendered meaningless. This includes, but is not limited to, an accurate legal description of the property being transferred, the signature of the grantor (the owner of the property transferring ownership), the marital status of the grantor, the name of the grantee (the person receiving ownership of the property), and the signature of two witnesses.
Florida Warranty Deed v. Florida Quitclaim Deed
The standard deed is known as a “Warranty Deed,” since the grantor (i.e., current owner) warrants, or guarantees, that he or she legally owns the property, has the right to transfer it to the grantee, and that the title is free and clear of defects, encumbrances, and other issues (such as liens, unresolved third-party claims, and so on). If such warranties are broken, the grantor can be held liable to the grantee.
This is in contrast to a Florida Quitclaim Deed, which contains no such assurances—not even that the grantor has full ownership rights to the property being transferred to the grantee. In other words, the grantee takes title at their own risk, as the deed type and lack of warranties shield the grantor from liability should a title defect exist.
So, What Good is a Quitclaim Deed?
Given their inherent risk, why do Quitclaim Deeds even exist, and why would anyone use them? The main reason is that there is no money being exchanged for the transfer. Hence most of the time, this type of deed is used between parties that are already familiar with each other, such as friends or family members. Quitclaim Deeds are also popular for adding or removing co-tenants to a property, moving real property into a trust or company, or even transferring real property between spouses in a divorce. They are also used when a property has title defects and the grantor does not want to incur liability.
Therefore, Quitclaim Deeds are advisable only in very specific situations. You would never want to purchase or acquire a property from a stranger without some guarantee that the title is free and clear of defects. Hence, most transfers of title should involve a Warranty Deed and the purchase of title insurance to protect you against possible title defects.
Why You Should Hire Farshchian Law
Do not let their lack of warranties deceive you, Quitclaim Deeds are still legal documents with legal implications. If you are planning to use a Quitclaim Deed or other deed type, or are confronted with one in a real estate transaction and have questions, it’s important to have an experienced Real Estate Attorney by your side who can advise you accordingly. Our attorneys have specialized experience in both drafting and reviewing all sorts of deeds, as well as providing a range of legal services in real estate transactions of all sizes.
To learn more or to schedule a free consultation, contact us by calling (800) 604-1871 or email us at Info@JFRealEstateLaw.com. We provide real estate, title, and closing services throughout the State of Florida.