The Risks of Using A Quitclaim Deed in Godfrey, IL
Are you thinking of using a quitclaim deed in your Godfrey, IL home? Quitclaim deeds provide a way for two people to transfer the ownership of a piece of property. Typically, they are used to include a spouse’s name on a deed upon marriage, to remove a spouse’s name off a home upon divorce or allow relatives to transfer property amongst themselves. You should know, however, that quitclaim deeds are not without risks. Before a quitclaim deed, you need to keep these things in mind.
- You do not have assurances or warranties regarding the property’s title. A quitclaim deed does not guarantee that the other party is the true owner of the property; it just permits them to surrender their interest in the property. The deed carries nothing if the other party lacks the authority in the matter.
- Removing your name off the deed does not exempt you from any debts connected to the property. After your divorce, you may no longer claim ownership of the family home, but to release you from the mortgage, your ex-spouse must refinance the house in their name (if there is one).
- Even with relatives, they are not always optimal. While you should never use a quitclaim deed with strangers, you should never rush to use this type of deed with a family member unless their honesty is certain. Your sister might be inclined to sell you a share of the family home, but do you know for sure that she did not try to make a deal with anyone else?
Avoid making any mistakes with your quitclaim. Give our team at Diaz Law Offices a call today!