Quitclaim Bill of Sale: Everything You Need to Know
A quitclaim bill of sale is a legal form/instrument used to record the sale of real property that has no guarantee of conditions for the buyer.3 min read
2. Quitclaim Bill of Sale Information
3. Deeds and Bill of Sale
Updated November 24, 2020:
A quitclaim bill of sale is a legal form/instrument used to record the sale of real property that has no guarantee of conditions for the buyer (i.e., a quitclaim). The buyer in a quitclaim bill of sale accepts that the real property is being bought "as is."
The Quitclaim Bill of Sale Form
The quitclaim bill of sale form is used to record a simple transfer of ownership of the property from the seller to the buyer without any liability of the seller to provide the buyer with a warranty. The seller of the real property can declare zero obligations to the buyer when using the form.
For the buyer, the document proves their right to ownership and serves as a receipt for payment made to the seller. The buyer, for their part, can ascertain that a physical transaction occurred and that they are the rightful owner of the real property. A quitclaim bill of sale is typically used for the selling or gifting of property within an immediate family circle. It is also frequently used during the tax deed sale process, such as public auctions, where the real property is purchased.
When a quitclaim transaction has taken place and the ownership of property is transferred from the seller to the buyer, it is important to have a record of the process since there is no warranty applied to the property.
Purchasing property "as is" means the seller is not guaranteeing the condition of the property or that the property is free of defects. Unless the seller adds a warranty provision for a certain number of days, the transfer is without a warranty. The "as is" clarifies that there were no verbal or written warranties made to the buyer. This protects the seller in case of a dispute.
Quitclaim Bill of Sale Information
When the quitclaim bill of sale form is initiated, the following information must be included:
- The amount of the sale, written in words and figures.
- The date the sale takes place.
- A clearly detailed property description.
- Seller's information.
- Buyer's information.
- The seller's signature, signed in front of a neutral witness.
- A witness's signature validating the seller's signature.
Deeds and Bill of Sale
A deed is not a bill of sale. Rather, it conveys what is legally included in the sale. This includes legal details and property specifications. It also usually includes information such as property lines, square footage, landmarks, and additional buildings.
Bill of Sale
A bill of sale transfers ownership of the real property to a buyer from a seller. A bill of sale is frequently used when purchasing a used auto, motorcycle, watercraft, or aircraft but can be used for any item that has value. The document details in writing either a transfer of property or the sale of goods from one party to another.
The bill of sale serves as a record of a sale that states a specific item was sold by a seller, on a specific date, at a specific place, and for either a specific amount of money or another property with value. It serves as a legal record that full consideration has been provided via a transaction.
With a transaction, there is a consideration, which is the value the buyer transfers to the seller in exchange for the goods/item being purchased. Money is most often used to satisfy the consideration. If no consideration is forthcoming, the contract may not be valid. Transferring property with no consideration involved is usually best done using a quitclaim deed rather than a bill of sale.
A bill of sale records specific information regarding the transfer, such as:
- A description of the item being sold.
- The date of the transaction.
- The seller's information.
- The location where the sale takes place.
- The amount of compensation paid by the buyer for the property.
A bill of sale that contains warranties means the buyer is assured by the seller that the property being purchased is theirs and that they have the right to transfer the property. If the bill of sale does not contain warranties, you quitclaim the property and do not warrant the title.
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