What Is a Quitclaim Deed and What Are They Commonly Used For?
A quitclaim deed in Michigan is a legal document used to transfer real estate ownership from one party to another without any warranties or guarantees. It conveys only the interest the current owner (grantor) actually has, leaving the new owner (grantee) responsible for any existing liens or title issues.
How It Works
- No Guarantees: Unlike a warranty deed, a quitclaim deed does not promise that the seller is the rightful owner or that the title is free and clear of debts or encumbrances.
- Transfers Interest Only: If the grantor has no legal claim or ownership of the property, the grantee receives nothing.
- Permanent Transfer: Once signed, notarized, and recorded, it represents a permanent transfer of ownership.
Common Uses
Because it offers no title protections to buyers, a quitclaim deed is rarely used for traditional sales. Instead, it is primarily used in trusted relationships and specific reorganizations, such as:
- Divorce: Removing an ex-spouse from the property title as mandated by a divorce judgment.
- Estate Planning: Transferring a primary residence or family cottage into a living trust.
- Gifting & Family Transfers: Adding a spouse to a deed after marriage or transferring property to adult children.
- Clearing Title: Fixing clerical errors or long-forgotten title issues.
Requirements in Michigan
To be legally valid and binding in Michigan, a quitclaim deed must:
- Identify the parties: Include the names and addresses of both the grantor and the grantee.
- Include a legal description: Clearly state the exact legal description of the property.
- Be signed and notarized: The grantor must sign the document in the presence of a notary public.
- Be recorded: It must be submitted to the register of deeds in the county where the property is located.