The transfer of ownership in the marital home in a divorce situation happens all the time. A real estate deed is a legal instrument that passes an interest in real estate from one person to another. Understanding which type of transfer deed to use is not only important but can expose the spouse awarded ownership to future title concerns.
The Quitclaim Deed is used to transfer interest in real estate from one person to another. Unlike other real estate deeds, it conveys only the interest the grantor has at the time of the deed’s execution and does not guarantee that the grantor actually owns the property or has good and clear title. Without warranties, it offers the grantee little or no recourse against the grantor if a problem with title arises in the future.
Of all the real estate deeds, general Warranty Deeds provide the most protection to the grantee. This type of deed guarantees that the grantor holds clear title to a piece of real estate and has a right to transfer ownership to the grantee. The grantor also guarantees that during their period of ownership, they did not encumber the property in any way that prohibits the transfer of ownership.
The Quitclaim Deed is almost always used to transfer ownership of the marital home and other real estate from one spouse to another. Each divorce is different and special consideration should be given as to whether or not a Warranty Deed is a wiser choice.
Always work with a Certified Divorce Lending Professional (CDLP) when going through a divorce and real estate or mortgage financing is present.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only, and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.
Copyright 2019 Divorce Lending Association. No portion of this post may be reproduced without the written consent of the Divorce Lending Association.