Business & Finance Renting & Real Estate

Pros & Cons of a Quitclaim Deed

    Pro: Affordable

    • Because quitclaim deeds are generally one size fits all, you don't need a lawyer to draw one up for you. Instead of incurring hundreds of dollars in legal fees, many quitclaim deed kits are available for purchase or download for less than $35, as of 2010.

    Con: Nonspecific

    • A quitclaim deed only transfers the grantee's share of the property to the grantor. This isn't an issue in instances where the property is owned by a single owner or when one owner is relinquishing a partial share to the other owner, as in the case of divorce proceedings. If ownership is convoluted or claims against the property such as liens exist, a quitclaim deed doesn't guarantee the new owner will be free of those complications.

    Pro: Easy to File

    • Completing a quitclaim deed is simple once you purchase a kit and provide the necessary information to complete the form. The grantor must sign the deed in the presence of a notary, and in a handful of states, the grantee must also sign the document. After it's signed and notarized, simply turn the deed into your county clerk to make the transfer official.

    Con: Potentially Fraudulent

    • It's a lot easier for criminals to fake a quitclaim deed on a property upon which they have no rightful claim. Investigate the legitimacy of claims of ownership if you have any doubts about the transaction before exchanging funds for the quitclaim deed.

    Pro: Flexible

    • Quitclaim deeds' relatively nonspecific nature allows them to work in a variety of situations, from adding a spouse's name to property after a marriage or transferring property to a trust or a company.

    Con: Irreversible

    • Once you complete and file a quitclaim deed, you no longer own the property, and in most cases, there is no recourse if you change your mind about the transaction. Although the grantor may use a quitclaim to transfer the property back to your possession, it's voluntary, and he can't be forced, save in instances of fraud.

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