If you’re navigating real estate transactions in Illinois, you may have come across the term “quit claim deed” and wondered what it is and how it works. For example, quit claim deeds are very common in a divorce. In this blog, we’ll break down the basics of quit claim deeds, how to execute one, and where they need to be recorded once completed. If you are like me, real estate deeds are not the most interesting topic, so grab some coffee and we will try to explain what you should know.
Before understanding a quit claim deed, it is important to understand the basics of a deed in Illinois. A deed is a legal document that transfers ownership of real property from one party (known as the grantor) to another (known as the grantee). It serves as the formal record of the property transfer and includes key details, such as the names of the grantor(s) and grantee(s), a description of the property, and any terms or conditions tied to the transfer. Deeds come in different forms, including warranty deeds and quit claim deeds, each offering varying levels of assurance about the property’s title. Once a deed is signed and delivered, it must be recorded with the appropriate government authority, typically the county Recorder of Deeds, to officially document the transfer and protect the new owner’s interest in the property.
Rights vs. Responsibilities. Deeds give rights to the property owner. They should not be confused with a mortgage, which is the responsibility of the borrower to pay the lender. Many times the people on the deed are also responsible for payment of the mortgage. However, there are reasons why someone may choose to be on the mortgage or the deed, but not both.
A quit claim deed is a legal document used to transfer ownership interest in real property from one person to another without making any guarantees about the title. A quit claim deed has very little protection to the recipient. For example, when making a home purchase, usually the buyer receives something like a “warranty deed” that provides protections to the buyer. Unlike a warranty deed, which assures that the title is free of claims or liens, a quit claim deed simply transfers whatever interest the grantor may have to the grantee. This could mean that the grantor is the rightful owner of the property or it may mean that they have no interest in the property. However, the grantee is now receiving 100% of whatever interest that the grantor had in the property.
Executing a Quit Claim Deed in Illinois involves several key steps:
While a quit claim deed can be a simple way to transfer property ownership, it’s important to understand its limitations—particularly the lack of any guarantee regarding the property’s title. If you’re unsure whether a quit claim deed is the right choice for your situation, you should speak with a lawyer.
Often one spouse is awarded the property in a divorce and the other spouse is ordered to sign a quit claim deed. It is important to make sure all parties know exactly who is responsible for what before you agree to give up your rights to the property. For example, people mistakenly believe that a divorce Judgment can eliminate one spouse’s responsibility to pay the mortgage, taxes, or other items associated with the property. However, the bank was not a part of the divorce process and their interest (i.e. the mortgage) is not changed by the terms of the divorce.
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