Amazing Benefits of Quitclaim Deeds
A quitclaim deed is considered different from all the other deeds. By completing the form issued, the property is transferred immediately to the second person. The importance of this kind of transfer is that it does not involve any kind of guarantees. Also, with this kind of deed you are able to enjoy tax advantages especially if the transfer is to a family member’s name. Therefore, the main benefit that can be obtained through quitclaim deed is that it allows the property to stay within the family, and it offsets all the costs that are observed in the traditional deeds.
So far we have established that quitclaim deeds are used for the purpose of transferring properties from one person to another. The traditional method is particularly used when a given property is passed from one person to another through a sale of the property. The other name for the traditional method is the warranty deed. The traditional method involves many guarantees to the person who is supposed to own the property after the transfer has been completed, something that is not observed when the quitclaim deed is used.
The quitclaim deeds also ensures that you have been prevented from having to spend a lot of money on payment of taxes . Using the traditional methods of transferring properties will force you to pay taxes which are based on 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. This prevents you from having to pay any money that was initially owned by the previous property owner. 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.
Also, quitclaim can be used in the event of a divorce. This is also done when the spouse is generous to give the property away. 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 therefore prevents the couple from incurring any taxes as they are transferring the house.
Quitclaim also ensures that you have been provided with an opportunity to overcome probate. Your heir is therefore protected from all the trouble of going to a probate court after your death. This method can therefore be used when the parent is very ill. If a parent used quitclaim deed to ensure that the property has been transferred to their child, the house will not have to go through probate court after the death of the parent. The disadvantage of probate court is that it is long and very expensive especially because you will be required to hire professional lawyers.