Advantages of Quitclaim Deeds
A quitclaim deed is considered different from all the other deeds. With a quitclaim you can easily transfer the property by easily filling the provided form. The importance of this kind of transfer is that it does not involve any kind of guarantees. Furthermore, there are many taxes that are paid when someone uses the traditional method to transfer a property, something that is not observed in quitclaim deeds. Therefore, the main benefit that can be obtained through quitclaim deed is that it allows the property to stay within the family, and it offsets all the costs that are observed in the traditional deeds.
So far we have established that quitclaim deeds are used for the purpose of transferring properties from one person to another. The other method of transferring properties is used when the transfer is not among family members. The other name for the traditional method is the warranty deed. Also, as stated before the traditional method involves many guarantees which are not observed in the quitclaim deed.
The quitclaim deeds also ensures that you have been prevented from having to spend a lot of money on payment of taxes . When the traditional methods are used, someone will be required to pay a tax that matches the true value of the property. In quitclaim deed, if the transfer does not involve any money the entire transaction is considered a gift. Additionally, you will not be responsible for any mortgages that are attached to the property after the transfer. The previous owner will still be required to cover for all the initial costs. The only time that you may end up paying the mortgage is if you were initially a co-owner of that property before the quitclaim.
Quitclaim deeds are commonly used in divorces where the spouse has been provided with the permission to take the property. This method can be used if it is through an act of generosity or if it is a court order. The title of the property goes into the name of whoever has been given the property, but the initial financial obligations are still in the name of the other spouse that initially owned the property. This method also prevents the couple from having to pay any taxes.
Additionally, with a quitclaim deed you are also capable of avoiding probate. Your heir is therefore protected from all the trouble of going to a probate court after your death. This method can therefore be used when the parent is very ill. It is therefore very important for someone to ensure that their heir has been protected from such stress. Both time and money are consumed through probate.