Quitclaim deeds are one way to transfer title to property under Arizona law. If you need legal advice about a quitclaim or another real estate matter, an Arizona real estate lawyer at Provident Law® can assist you. Here are five important things you should know about quitclaim deeds in Arizona.
1. What is the Purpose of a Quitclaim Deed?
The main purpose of a quitclaim deed is to legally transfer a property owner’s interest in real estate to another person or entity. Using a quitclaim deed is among the most straightforward ways to transfer title to real estate under Arizona law.
2. What are Common Reasons that People Use Quitclaim Deeds?
Individuals use quitclaim deeds for various reasons. For instance, people may use quitclaim deeds to transfer property to an heir or relative as a gift rather than selling it. A spouse often will use a quitclaim deed to transfer their interest in a property to the other spouse as part of a property settlement agreement in a divorce. Individuals also use quitclaim deeds to transfer property in their names into trusts they have created for estate planning.
Quitclaim deeds are also useful in clarifying how multiple owners or heirs own property. If one joint owner wishes to transfer all or part of their interest in the property to another joint owner, a quitclaim deed is a useful tool. A quitclaim deed can be used to change how multiple owners hold title to property and correct any mistakes made in previously recorded deeds.
3. Does Using a Quitclaim Deed to Transfer Property Pose Any Risks?
A quitclaim deed can be risky because it offers no guarantees about the validity of the property’s title. As a result, when using a quitclaim deed, the property owner makes no warranties or guarantees regarding the property’s condition, so the person or entity taking ownership of the property is taking it in an “as-is” condition. If the property has defects, the person or entity taking ownership is responsible for curing those defects.
Quitclaim deeds are also irrevocable, meaning that once they are signed and recorded, they are a permanent property transfer. Therefore, you should get advice from an Arizona real estate attorney to ensure that you understand the legal implications of conveying real estate through a quitclaim deed and have met all legal requirements to execute the deed properly.
4. What Are the Requirements to Execute a Quitclaim Deed?
First, a quitclaim deed must include a proper legal description of the real estate. A legal description is not just the property address but also a detailed description of the property that may include features such as lot numbers, boundary descriptions, and other legal identifiers that make the property unique.
Next, the grantor, or the property owner transferring the property rights, must sign the quitclaim deed in the presence of a notary public. The purpose of this requirement is for the notary to ensure that the grantor’s signature is legitimate and that the grantor is signing the quitclaim deed willingly and under duress.
The quitclaim deed must identify both the grantor and the grantee or the person or entity receiving the interest in the real estate by name.
Finally, one of the parties must record the quitclaim deed at the local county recorder’s office so that it becomes an official document. The recording process requires the payment of a recording fee. The deed also must comply with certain formatting requirements under A.R.S. 11-480, such as font size, paper size, and margin specifications.
5. Does Transferring a Property via Quitclaim Deed Also Transfer Liability for an Existing Mortgage on the Property?
Transferring a property via quitclaim deed does not also transfer legal liability or responsibility for an existing mortgage on the property. The original mortgage holder remains liable for the mortgage debt, regardless of the transfer of the deed to the property. This common misconception can lead to financial and legal confusion, particularly if the grantor believes they are no longer responsible for the mortgage loan, and the grantee then fails to make the payments on the mortgage loan when they become due.
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