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)” »