What is a Quitclaim Deed?

A quitclaim deed is a legal document used to transfer ownership of real property from one person (the grantor) to another (the grantee) without making any guarantees or warranties about the title. This type of deed is often used in situations where the parties involved know each other well, such as between family members, divorcing spouses, or when adding a person to the title. Unlike a warranty deed, a quitclaim deed offers no protection to the grantee against any issues with the title.

Uses of Quitclaim Deeds in New Jersey

In New Jersey, quitclaim deeds are commonly used for various purposes, including clearing up title defects, transferring property between family members, and resolving issues during divorce settlements. For instance, if a property was inherited and there is a need to transfer ownership among siblings, a quitclaim deed can simplify the process and effectuate the transfers. Additionally, they are often used to add or remove someone from the property title, such as adding a spouse after marriage or removing one after a divorce.

Process of Recording a Quitclaim Deed

Recording a quitclaim deed in New Jersey involves several steps. The grantor must prepare the deed, which includes a legal description of the property, the names of the parties involved, and the date of the transfer. The deed must be signed by the grantor in the presence of a notary public. Afterward, the signed and notarized deed must be recorded with the county clerk's office in the county where the property is located. This recording makes the transfer of ownership official and a public record.

Considerations and Risks

While quitclaim deeds are useful for certain transactions, they carry risks due to the lack of warranty. The grantee receives no guarantees that the grantor has a valid title or that the property is free of liens and encumbrances. Therefore, it's crucial to conduct a thorough title search and consider the implications before proceeding with a quitclaim deed. Consulting with a real estate attorney can also provide additional protection and clarity during the process.