A post-sale quitclaim deed is a quitclaim deed made after the sale of a property. Quitclaim is a legal document that allows for a simplified form of property transfer without legal ramifications. Family members, trusts and estates commonly use quitclaims to transfer property after a sale. For example, you could purchase a property in your name and use a post-sale quitclaim deed to transfer the property to your family trust.
Quitclaim Deed
As owner of a property, you hold the legal right to transfer the responsibility and interest in that property to another party. You are the grantor in the transaction, and the party you transfer the property to is the grantee. Once you file the quitclaim deed, you no longer hold legal responsibility for the property. The grantor transfers all rights to the grantee through the quitclaim deed. The deed, however, offers no warranty on the title. For this reason, this form of property transfer mostly occurs between family members.
Transfer Within Families
The use of quitclaim deeds is a popular option for families wanting to transfer property to another family member because the quitclaim deed does not require an attorney or other agents. Additionally, families commonly use quitclaim to gift a property or place the property in a family trust. During a divorce, couples sometimes use quitclaim deeds to transfer full ownership interest of the property to one party.
Tax Deed
Governments sometimes also use quitclaim deeds when selling properties to recover taxes owed. Using a quitclaim deed prevents the government from having to deal with the legal ramifications of transferring the property to another party. A quitclaim deed allows a government to sell the property without offering any warranties or promises of any kind to the buyer, releasing the government from future liability for the property.
Liabilities
When you execute a quitclaim deed on a property secured by a mortgage, you cannot transfer liability for the mortgage to the grantee through the quitclaim deed. Further, the company holding the mortgage must agree to the transfer before you can execute the quitclaim. In some cases, the financial institution will allow you to transfer the property as long as you agree to keep paying the mortgage. Should default on your mortgage obligations, the grantee can still lose the home if the financial institution holding the mortgage pursues a foreclosure action.
