Quitclaim

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Generally, a quitclaim is a formal renunciation of a legal claim against some other person, or of a right to land. [1] A person who quitclaims renounces or relinquishes a claim to some legal right, or transfers a legal interest in land. [2] Originally a common-law concept dating back to Medieval England, the expression is in modern times mostly restricted to North American law, where it often refers specifically to a transfer of ownership or some other interest in real property. [3]

Contents

Commonly, quitclaims are used in situations where a grantor transfers any interest they have in property to a recipient (the grantee ) but without offering any guarantee as to the extent of that interest. [4] There may even be no guarantee that the grantor owns the property or has any legal interest in it whatsoever. Specific situations where a precise definition of the grantor's interest (if any) may be unnecessary include property transferred as a gift, to a family member, or into a business entity. Another typical use is where there was a previous assignment that is under some question, and a subsequent assignment "quitclaims" the same property to the same grantee, on terms that perfect the possible defect (without conceding that the defect exists, and with no warranty that the grantor has any residual interest to transfer).

The legal instrument by which the transfer is effected may be known as a quitclaim deed or a quitclaim agreement. [3] Details of the instrument itself, and the typical circumstances of use, vary by U.S. state.

History

Cartulary of Dale Abbey, Derbyshire, folio 36. In the middle section Ralph de Frescheville quitclaims two bovates of land to Eleanor, daughter of Geoffrey Chamberlain, for three marks in silver. No date, but folio 37 records a deed of 1261 Dale Abbey cartulary 01.png
Cartulary of Dale Abbey, Derbyshire, folio 36. In the middle section Ralph de Frescheville quitclaims two bovates of land to Eleanor, daughter of Geoffrey Chamberlain, for three marks in silver. No date, but folio 37 records a deed of 1261

The common law concept of quitclaim dates back to medieval England. [6] Its purpose was to provide a straightforward way for a tenant or other person in actual possession of some land to acquire additional rights in it from some other person. [6] For example, a tenant in possession might acquire a fee simple in the land from a superior landowner such as a freeholder. In such a case, the use of quitclaim circumvented the multistep process of the tenant having to formally give up possession to the original freeholder, merely in order to be re-granted possession by feoffment as freeholder in their own right. [6]

Quitclaim may originally have been an oral transaction, but by the thirteenth century a formal sealed document or court record had become necessary. [6] A famous early example is the Quitclaim of Canterbury of 1189, by which Richard I reversed the Treaty of Falaise, transferring his claims on Scotland to William the Lion.

In United States law

Missouri State quitclaim deed, 1871 Quit claim deed signed William S. Reefe and Alice L. Reefe of Washington County, July 10, 1871.jpg
Missouri State quitclaim deed, 1871

In most arms-length real property transactions, such as a house sale, it is normal for the seller or grantor to warrant that they actually own the property or the interest in it that they are purporting to transfer. But a quitclaim deed contains no such warranty, and the grantee is entitled only to whatever interest the grantor actually possesses at the time. [7] Indeed, the quitclaim deed may offer the grantee no warranty at all even as to the status of the property's title (ownership), [8] and there may be no guarantee that the grantor owns any interest in the property at all. [9]

Because of the lack of warranty, quitclaim deeds are most often used in specific situations where a precise definition of the grantor's interest is unnecessary, such as where property is being transferred as a gift, to a family member, or into a business entity. [7] For example, when a spouse is to acquire the marital home as part of a divorce settlement, the other spouse may be able to transfer their full interest quickly and inexpensively via a quitclaim deed. [10] A quitclaim deed may also be used to transfer title of a property to a purchaser following a foreclosure auction. Typically such a deed will not warrant that the property title is free and clear, and it remains up to the grantee to check that the property is not subject to any legal encumbrances. [11]

Usage varies by state, and in Massachusetts quitclaim deeds include statutory warranties (similar to “special warranty deeds” in other states) and are the norm rather than the exception. [12]

Execution of a quitclaim deed is relatively simple, and may require little more than the signature of the parties. Some states require the deed to be notarized or acknowledged before a notary. [4] Some states permit a jurat, also known as a verification upon oath or affirmation, in which the affiant swears to the truth of the contents of the document, and signs the document in front of the notary. [13]

See also

Related Research Articles

In English law, a fee simple or fee simple absolute is an estate in land, a form of freehold ownership. A "fee" is a vested, inheritable, present possessory interest in land. A "fee simple" is real property held without limit of time under common law, whereas the highest possible form of ownership is a "fee simple absolute," which is without limitations on the land's use.

<span class="mw-page-title-main">Life estate</span>

In common law and statutory law, a life estate is the ownership of immovable property for the duration of a person's life. In legal terms, it is an estate in real property that ends at death, when the property rights may revert to the original owner or to another person. The owner of a life estate is called a "life tenant". The person who will take over the rights upon death is said to have a "remainder" interest and is known as a "remainderman".

A mortgage is a legal instrument of the common law which is used to create a security interest in real property held by a lender as a security for a debt, usually a mortgage loan. Hypothec is the corresponding term in civil law jurisdictions, albeit with a wider sense, as it also covers non-possessory lien.

This aims to be a complete list of the articles on real estate.

A deed, commonly, is a legal document that is signed and delivered, especially one regarding the ownership of property or legal rights. More specifically, in common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring (conveyancing) title to property. The deed has a greater presumption of validity and is less rebuttable than an instrument signed by the party to the deed. A deed can be unilateral or bilateral. Deeds include conveyances, commissions, licenses, patents, diplomas, and conditionally powers of attorney if executed as deeds. The deed is the modern descendant of the medieval charter, and delivery is thought to symbolically replace the ancient ceremony of livery of seisin.

A real estate contract is a contract between parties for the purchase and sale, exchange, or other conveyance of real estate. The sale of land is governed by the laws and practices of the jurisdiction in which the land is located. Real estate called leasehold estate is actually a rental of real property such as an apartment, and leases cover such rentals since they typically do not result in recordable deeds. Freehold conveyances of real estate are covered by real estate contracts, including conveying fee simple title, life estates, remainder estates, and freehold easements. Real estate contracts are typically bilateral contracts and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable.

Estoppel is a common law doctrine which, when it applies, prevents a litigant from denying the truth of what was said or done. The doctrine of estoppel by deed is a particular estoppel doctrine in the context of real property transfers. Under the doctrine, the grantor of a deed is estopped (barred) from denying the truth of the deed. The doctrine may only be invoked in a suit arising out of the deed, or involving a particular right arising out of the deed.

In United States property law, a cloud on title or title defect is any irregularity in the chain of title of property that would give a reasonable person pause before accepting a conveyance of title. According to Investopedia, a cloud can be defined as: "Any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property or make the title doubtful. Clouds on title are usually discovered during a title search." Clouded title can thus be contrasted with a clear title, which indicates that a property is unencumbered.

An action to quiet title is a lawsuit brought in a court having jurisdiction over property disputes, in order to establish a party's title to real property, or personal property having a title, of against anyone and everyone, and thus "quiet" any challenges or claims to the title.

<span class="mw-page-title-main">Warranty deed</span> Real estate transfer with title guarantee

A warranty deed is a type of deed where the grantor (seller) guarantees that they hold clear title to a piece of real estate and has a right to sell it to the grantee (buyer), in contrast to a quitclaim deed, where the seller does not guarantee that they hold title to a piece of real estate. A general warranty deed protects the grantee against title defects arising at any point in time, extending back to the property's origins. A special warranty deed protects the grantee only against title defects arising from the actions or omissions of the grantor.

In real estate business and law, a title search or property title search is the process of examining public records and retrieving documents on the history of a piece of real property to determine and confirm property's legal ownership, and find out what claims or liens are on the property. A title search is also performed when an owner wishes to sell mortgage property and the bank requires the owner to insure this transaction.

In property law and real estate, a future interest is a legal right to property ownership that does not include the right to present possession or enjoyment of the property. Future interests are created on the formation of a defeasible estate; that is, an estate with a condition or event triggering transfer of possessory ownership. A common example is the landlord-tenant relationship. The landlord may own a house, but has no general right to enter it while it is being rented. The conditions triggering the transfer of possession, first to the tenant then back to the landlord, are usually detailed in a lease.

<span class="mw-page-title-main">Tax sale</span>

A tax sale is the forced sale of property by a governmental entity for unpaid taxes by the property's owner.

A grant deed is used in some states and jurisdictions for the sale or other transfer of real property from one person or entity to another person or entity. Each party transferring an interest in the property, or "grantor", is required to sign it. The signatures must be acknowledged before a notary public or other official authorized by law to administer oaths.

Lease and release is literally the lease (tenancy) of non-tenanted property by its owner followed by a release (relinquishment) of the landlord's interest in the property. This sequence of transactions was commonly used to transfer full title to real estate under real property law. Lease and release was a mode of conveyance of freehold estates formerly common in England and in New York for tax avoidance and speed. Between its parties it achieves the same outcome as a deed of grant/transfer/conveyance.

<span class="mw-page-title-main">Bargain and sale deed</span>

A bargain and sale deed is in United States real property law, a deed "conveying real property without covenants".

A reversion in property law is a future interest that is retained by the grantor after the conveyance of an estate of a lesser quantum that he has. Once the lesser estate comes to an end, the property automatically reverts back to the grantor.

The Rule in Shelley's Case is a rule of law that may apply to certain future interests in real property and trusts created in common law jurisdictions. It was applied as early as 1366 in The Provost of Beverly's Case but in its present form is derived from Shelley's Case (1581), in which counsel stated the rule as follows:

when the ancestor by any gift or conveyance takes an estate of freehold, and in the same gift or conveyance an estate is limited either mediately or immediately to his heirs in fee simple or in fee tail; that always in such cases, "the heirs" are words of limitation of the estate, not words of purchase.

<span class="mw-page-title-main">Real property</span> Legal term; property consisting of land and the buildings on it

In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, refers to parcels of land and any associated structures which are the property of a person. In order for a structure to be considered part of the real property, it must be integrated with or affixed to the land. Examples include crops, buildings, machinery, wells, dams, ponds, mines, canals, and roads. The term is historic, arising from the now-discontinued form of action, which distinguished between real property disputes and personal property disputes. Personal property, or personalty, was, and continues to be, all property that is not real property.

<span class="mw-page-title-main">Disposition (Scots law)</span> Deed transferring ownership of heritable property

A disposition in Scots law is a formal deed transferring ownership of corporeal heritable property. It acts as the conveyancing stage as the second of three stages required in order to voluntarily transfer ownership of land in Scotland. The three stages are:

  1. The Contractual Stage
  2. The Conveyancing Stage
  3. The Registration Stage

References

  1. ↑ Collins English Dictionary (10th ed.). London: Collins. 2010. quitclaim. ISBN   978-0-00-738233-0. OCLC   495599124.
  2. ↑ "quitclaim, v." . Oxford English Dictionary (Online ed.). Oxford University Press . Retrieved 29 December 2021.(Subscription or participating institution membership required.)
  3. 1 2 "quitclaim, n. (and adv.)" . Oxford English Dictionary (Online ed.). Oxford University Press . Retrieved 29 December 2021.(Subscription or participating institution membership required.)
  4. 1 2 "The Complete Guide to Quit Claim Deeds". Deeds.com Inc. Retrieved 12 February 2018.
  5. ↑ Cox, Charles J, ed. (1901). The Chartulary of the Abbey of Dale. Journal of the Derbyshire Archaeological and Natural History Society (Bemrose and Sons). p. 96.
  6. 1 2 3 4 Pollock, Frederick; Maitland, Frederic William (1898). The History of English Law Before the Time of Edward I. Vol. II (2nd ed.). Indianapolis: Republished 2010 by Liberty Fund. pp. 94–95. ISBN   978-1-61487-849-0. OCLC   820841850.
  7. 1 2 Fogler, Jean (17 November 2017). "Top 5 Facts About Quitclaim Deeds". Investopedia, LLC. Retrieved 12 February 2018.
  8. ↑ Black, Henry Campbell; Bryan A. Garner; Black Artemis (1999). Black's Law Dictionary (7th ed.). West Group. p. 1126. ISBN   978-0314228642.
  9. ↑ See generally Barron's Law Dictionary, pp. 381-382 (2d ed. 1984).
  10. ↑ Dukeminier, Jesse; James Krier; Gregory Alexander; Michael Schill (November 22, 2017). Property (9th ed.). Aspen Publishers. pp. 595, 599. ISBN   978-1454896500.
  11. ↑ Klamecki, Lawrence (2 April 2020). "Foreclosure Auctions – Does a Quitclaim Deed Give Clear Title?". REFlipper. Retrieved 29 December 2021.
  12. ↑ Vetstein, Richard D. (6 June 2011). "The Anatomy of a Massachusetts Quitclaim Deed". The Massachusetts Real Estate law Blog. Retrieved 13 Jan 2017.
  13. ↑ "Jurat vs. Acknowledgments - Which One?". Michigan Secretary of State. Archived from the original on 13 February 2018. Retrieved 12 February 2018.
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