When a person sells or buys real estate property, they have to sign a legal document known as property transfer deed which serves as the legal proof of the selling or buying process. The Quitclaim Deed that we are discussing here is the same kind of document that is used for transferring the ownership of a real estate property from one person to another but it is a little different as compared to the common warranty deed.
Importance of Quitclaim Deed:
As you know, there are basically two types of deeds used for transferring the ownership of a real estate property including; warranty deed and quitclaim deed. The warranty deed is the most commonly used deed these days and by signing this deed, the seller states that he is selling the property with his consent to another person in exchange of a particular amount of money and he also claims that there is no liability with the property i.e. taxes, mortgage, loans or other utility bills. With this warranty deed, if the buyer finds out he is going to be held responsible for any liability or financial expense related to the property, he can file a case against the buyer by using the warranty deed. On the other hand, a quitclaim deed is also used to transfer the ownership of a property but it is used when there is no money involved and the property is transferred to another person without him giving any money to the seller.
This deed is mostly used to transfer the property within family i.e. parents use this quitclaim deed to transfer homes to their children or married people use this deed to add or remove the name of their spouses from the ownership of the property. The most important thing about this quitclaim deed is that it comes with no warranty which means if there is a liability with the property i.e. mortgage loan, tax disputes or any other problem, the new owner will be held responsible and no questions will be asked to the previous owner as he has transferred all the rights to the new owner. This fact that quitclaim deed is actually no warranty deed makes it more complicated and difficult to use. This is why quitclaim deed isn’t used in most cases and even if one uses it, he has to make sure that he can trust the selling party or he won’t be able to ask them about any liability that comes with the property.
Useful tips for writing Quitclaim Deed:
There are many things that you can consider before preparing a quitclaim deed but first you need to understand that it’s not like a notice or letter or application that you can draft by yourself. You need to contact the local property department and ask them to give you a quitclaim deed form that only be used for the property that you mention in the registrar’s office. Once you got the form, you just need to fill it with the names of the seller(s), the buyer(s), the detail of the property, its location, the date when you transferred the ownership to another person, the statement that there is no warranty with this transfer and signature of witnesses.
Free Quitclaim Deed Template
Here is Free Fill-able PDF of Quitclaim Deed / Agreement,
Here is download link for this Quitclaim Deed / Agreement,
A quitclaim bill of sale is just like a transfer deed or common bill of sale but the difference is that with this bill of sale, there is no guaranty provided by the seller to the buyer. Also, the item or property that is being sold is sold as it is which means once the buyer buys it, the seller won’t be liable for any damage or won’t be held responsible for any kind of liability to the property. Quitclaim bill of sale is a form that you can get from local property department and by filling it; you can transfer the ownership of the property to any buyer.
Brief Description of Quitclaim Bill of Sale Form:
When a person sells or buys something, they need to sign a legal document called bill of sale form. This document severs as the proof of the sell or purchase for both parties but more importantly, it allows the buyer to claim the warranty in case of any dispute or liability. This particular quitclaim bill of sale form is just like a transfer form that is signed by the buyer and seller but with this document, the seller informs the buyer that he is not giving any warranty or liability guaranty with the sold item so from the date of transfer of ownership, the new buyer will be held responsible and the first owner won’t be asked any questions in any dispute as he has transferred all the rights to the new buyer.
Key Elements to include in Quitclaim Bill of Sale Form:
- Name of the seller
- Name of the buyer
- Details of the item (piece of property) being sold
- Specifics about the selling item
- Price on which the item is sold
- Payment schedule
- Proper dates
- The agreement to the term of no warranty for the property
- Signature of witnesses and both parties
- Signature of property registrar in local property department
Importance of Quitclaim Bill of Sale Form:
It is not very hard to understand that if you sell or buy something, you need to have the proof of the process. This is important because if you have sold something, with the transfer form, you won’t be held liable to any responsibility related to the property where on the other hand, if you want to claim the ownership of something that you recently bought, you need to have a bill of sale form that proves you bought it and the previous owner sold it to you with his consent. When you buy something with warranty, you also need the bill of sale form to claim warranty in case of any damage or other situation but in this particular situation, this quitclaim bill of sale form benefits the seller more. Once you sell something with the quitclaim bill of sale form, you inform the buyer that you are not providing any warranty with the selling item and you won’t take responsibility for any liability with the selling item in future.
Free Quitclaim Bill of Sale Form:
Here is preview of this Free Fill-able PDF of Quitclaim Bill of Sale Form,
Here is download link for this Quitclaim Bill of Sale Form,