If you’ve read Parts I and II of, “Which One Do I Choose,” you may have decided whether a quitclaim or warranty deed is best for you. Now it’s time to decide which deed to use based on ownership of the property.
How will the property be owned?
The person(s) buying or receiving title to the property is called the grantee. To select a Colorado deed, you need to know how the grantee(s) will own the property after it is bought or acquired. Different forms are used depending on whether the grantee will be an individual, tenant in common, or joint tenant.
What are the different ways to own real property? And why does the deed matter when you die?
In Colorado, a person can own property in one of three ways:
• Individual. One person owns the property. As the sole owner, you can list your property in your will. If there is no will, your property will be distributed according to the probate laws of Colorado when you die.
• Joint tenants (with right of survivorship). This type of ownership can exist between two or more people. This is most common between a husband and wife, but could be multiple owners, like three sisters, or perhaps five friends who own a cabin together. If one owner dies, the other owners listed on the deed automatically inherit the share of the person who died. Continue reading “So Many Deeds. Which One Do I Choose? (Part III)” »
The title to real property can be changed from one person to another by using a legal form called a deed. Different types of deeds provide the buyer and seller with different levels of protection against future title problems. But which Colorado deed is right for you—a quitclaim deed, a warranty deed, or a special type of deed for a specific transaction? A quitclaim deed may be all you need.
Just what does a quitclaim deed do?
A quitclaim deed (not “quick claim” or “quit claim”) is what it sounds like—a deed used to “quit” or end someone’s claim on the property. Quitclaim deeds are versatile and can be used to add or remove someone from the title, change ownership from joint tenants to tenants in common, or clear up problems with the title. Quitclaim deeds are frequently used for title transfers within a family.
A quitclaim deed is used to transfer a person’s interest in the property, but it doesn’t guarantee that the person who signs the deed actually has an interest in the property, nor does the deed specify how much of the property that person owns. Quitclaim deeds may be risky for the buyer, since these deeds provide no guarantee that the seller has good title or even that the seller owns the property. If a buyer uses a quitclaim deed and doesn’t do a title search, that buyer could wind up buying problems along with the property. Using a quitclaim deed means the buyer may have little recourse if problems arise after the sale. Continue reading “So Many Deeds. Which One Do I Choose? (Part I)” »