Advantages of Quitclaim Deeds
A claim deed is completely different from the traditional deed. With a quitclaim you can easily transfer the property by easily filling the provided form. Unlike the traditional deeds, the quitclaim deeds do not involve any guarantees. Unlike the traditional methods of transferring properties, quitclaim deeds do not involve any kind of taxes. The most amazing benefit that someone can experience through quitclaim deeds is that they ensure that the property stays within the family.
So far we have established that quitclaim deeds are used for the purpose of transferring properties from one person to another. The traditional methods are mostly used when properties are transferred to non-family members. The traditional method is also commonly referred to as the warranty deed. Also, as stated before the traditional method involves many guarantees which are not observed in the quitclaim deed.
Also, you are protected from payment of taxes during the transfer through quitclaim deeds. When the traditional methods are used, someone will be required to pay a tax that matches the true value of the property. If no money is involved during the transfer, the house is considered a gift and therefore no taxes are paid. Furthermore, quitclaim deeds only transfer the ownership of the property but does not transfer any leans or mortgages which are already on the property. 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 can be done if the spouse has been ordered by the court to transfer the property or if it is an act of generosity. 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. This ensures that your heir has not been taken to the probate court after your death. In case the parent is very ill, then this is the best method that should be used. 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.