Advantages of Quitclaim Deeds
A quitclaim deed is considered different from all the other deeds. It is actually a form that can be completed quickly to ensure that a real property has been transferred. The importance of this kind of transfer is that it does not involve any kind of guarantees. Unlike the traditional methods of transferring properties, quitclaim deeds do not involve any kind of taxes. 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.
The main purpose of quitclaim deeds is that they 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. Quitclaim deed escapes all the guarantees that are observed in the traditional method of transferring properties.
As stated before, quitclaim deed ensures that you have been protected from all the taxes involved in transferring properties. 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. All the costs are still under the initial owner’s name. 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 can be done if the spouse has been ordered by the court to transfer the property or if it is an act of generosity. However, even though the property has been transferred to the next spouse, the obligations still lie with the initial owner. The couples are also able to shelter themselves from taxes.
Additionally, with a quitclaim deed you are also capable of avoiding probate. This ensures that your heir has not been taken to the 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. Probate is very expensive and time consuming.