UNDERSTANDING QUITCLAIM DEEDS IN GEORGIA
When it comes to real estate transactions and transfers in Georgia, one common type of deed that is often used is the Quitclaim Deed. But what exactly is a Quitclaim Deed, and how does it work?
A Quitclaim Deed is a legal document that allows the transfer of interest in a property from one party to another. One of the main advantages of a Quitclaim Deed is its simplicity and ease of use. It can be a quick and straightforward way to transfer property between family members, during divorce proceedings, or to clear up any questions about ownership as it would not require a title search to convey the interest of the transferring party, if any. Due to the reference to how “quick” it can be, many people often refer to this type of deed, inaccurately, as a “quickclaim deed.”
Perhaps the greatest advantage, discussed above, is also its greatest disadvantage. Unlike other types of deeds, such as Warranty Deeds or Special Warranty Deeds, a Quitclaim Deed does not provide any guarantees or warranties regarding the property's title. Instead, it simply transfers the interest or claim that the grantor has in the property to the grantee, assuming they have any interest in the property at all. In the context of a purchase transaction, a quitclaim deed would be used to clear up breaks in the chain of title involving third parties to the transaction, where as the Seller would present the Buyer with some warranties included in one of the Warranty Deed options, discussed below. Due to the nature of a quitclaim deed in and of itself, it is a prime candidate for fraudulent property transfers, especially when they are presented in a DIY format as opposed to at least minimum vetting by a licensed Georgia real estate attorney, like Your Hometown Attorney.
In Georgia, aside from Quitclaim Deeds, there are other deed options available that may be considered better options depending on the circumstances. For example, a Warranty Deed provides a guarantee that the grantor has clear title to the property and will defend against any claims that may arise. A Special Warranty Deed, on the other hand, only guarantees against claims that may have arisen during the grantor's ownership of the property. These other types of deeds are the most commonly used deeds in a purchase transaction. Another option to consider is a Deed of Gift, which is used when the grantor wants to transfer ownership of the property as a gift, without any exchange of money or consideration. A Deed of Gift can be a suitable choice for situations where the grantor wants to transfer property to a family member or loved one without any transactional obligations.
When deciding which deed option is best for your situation in Georgia, it's crucial to consider factors such as the history of the property, the relationship between the parties involved, and the level of protection you require or desire. Consulting with and employing a real estate attorney, like Your Hometown Attorney can help you navigate the different deed options and determine the most suitable choice. Employing an Attorney to handle the drafting process will also give both the transferring party and the party receiving the property peace of mind that the deed is drafted appropriately, a problem we all too often encounter with DIY deeds as a real estate firm. Buyers should be extremely wary of any Seller who wishes to “meet them at the courthouse” and “give them a Quitclaim Deed.” In an effort to save money in the short-term, a Buyer could find themselves out of tens or hundreds of thousands of dollars in terms of the investment they made in their property as well as legal fees they would likely expend attempting to preserve their interest in the property.
In conclusion, while a Quitclaim Deed can serve its purpose in certain circumstances, it's essential to understand its limitations and explore other deed options available in Georgia. Taking the time to consider the various deeds and seeking professional advice will ensure that your real estate transaction is carried out smoothly and provides the necessary protection for all parties involved.
Interested in transferring, selling, or transferring your Georgia property? Contact Your Hometown Attorney today! Call us at 706-359-3332 or e-mail us at clientservices@turnerjoneslegal.com.