Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Quitclaim Deed

What it is:

A quitclaim deed is a document that transfers interest in a property to another person.

How it works (Example):

For example, let's say John Doe and Jane Doe are married and live in a house that they own together. John and Jane decide to get a divorce. John gets the house; Jane gets the retirement accounts. As part of the divorce transaction, Jane must sign a quitclaim deed to John Doe so that she officially gives him her half of the house. Through this, the country or municipality removes Jane's name from the title to the property.

It is important to note, however, that Jane may still be liable for the mortgage payments on the property, even after the quitclaim deed is executed.

Why it Matters:

A quitclaim deed transfers interest in a property with a simple signature, making them very convenient. However, it is important to note that a quitclaim deed does not require the person signing it to prove that he or she has an interest in the property in the first place. Thus, a quitclaim deed could give the receiver of the deed no guarantee that he or she rightfully owns the property being transferred.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...