Understanding Quit Claim Deeds in New York
When transferring real property, quite often you'll hear the term “quit claim deed” thrown around4 min read
When transferring real property, quite often you'll hear the term “quit claim deed” thrown around. Though it might seem scary and unfamiliar at first, understanding quit claim deeds is very important if you plan to buy, sell, or transfer real estate--especially in New York.
Surprisingly, the quit claim deed has one of the longest histories among legal documents. First adopted in England during the 18th century, it has also become deeply embedded in American law. Since the days of the Wild West, quit claim deeds have been a popular means to transfer title to real estate holdings. They remain one of the transaction documents commonly used to record real estate transfers today.
But what exactly is a quit claim deed and how does it pertain to real estate in New York? This article will seek to break down the need-to-know points about quit claim deeds and the regulations that apply to the New York real estate market.
What Is A Quit Claim Deed?
Put simply, quit claim deeds are the main means of transferring legal title to or from a real estate property. They are primarily used as a means to transfer property between two individuals, or (in some cases) a tenant-owner relationship. The deed is a simple document that does not contain any warranty of title or a promise that the grantor actually owns the real estate in question.
In a quitclaim deed, the grantor only transfers whatever interest he or she has in the real property. In other words, the deed only conveys title to the property if the grantor actually has title to begin with, leaving the grantee with whatever rights the grantor has to the property. The grantor doesn't necessarily have to have any title to the title at all.
Essentially, the purpose of a quitclaim deed is convenience. It is faster and simpler to execute than most other forms of a deed.The grantor will simply state that he or she is filing the deed to “quitclaim” or give up any rights or interest he or she might have in the property.
How Does a Quit Claim Deed Work in New York?
Because quitclaim deeds are used to transfer title to real estate property, New York has specific laws and regulations that govern the use of such documents. Most notably, New York requires that the grantor have legal capacity to enter into the transaction. This means that the grantor must be approved by age and mental capacity to sign the deed.
In addition, the law requires that the deed be properly signed and witnessed in order for it to be effective. The deed must also be properly filed with the county in which the property is located in order to be given full legal effect.
It is also important to note that New York does not require that the property being transferred is actually located in the state. If a grantor is transferring title to property located in another state, the deed should still be legally filed with the New York office in order for it to be valid.
What Are the Benefits of a Quit Claim Deed in New York?
The primary benefit to using a quitclaim deed in New York is simplicity and convenience. Because the grantor does not have to certify that they actually own the property, the transaction can take place more quickly than with other types of real estate documents.
In addition, using a quitclaim deed in New York can be used when a grantor lacks certain documents or legal documents that are required for a more traditional deed. This could be especially beneficial in cases where the grantor is involved in a bankruptcy proceeding or other legal battle that makes it difficult to obtain such documents.
What Are the Risks Associated with a Quit Claim Deed in New York?
Though there are many benefits to using a quit claim deed, it is important to understand the risks associated with it as well. Primarily, there is no guarantee that the grantor actually owns the title to the property. Though the grantee may be able to claim rights to the property through the deed, there is no guarantee that those rights will be legally recognized.
In addition, the exact nature of the grantor’s rights to the property may not be clear. If the grantor does not own the property outright, he or she may not be able to transfer rights to it as they intend. As a result, using a quitclaim deed when buying, selling, or transferring real estate could cause a number of legal issues down the line.
The core message
When it comes to buying, selling, or transferring real estate in New York, quit claim deeds are an important tool to understand. Though the process may seem simpler and faster than using a traditional deed, there are a number of risks involved that should be weighed before a transaction takes place.
Anyone considering using a quit claim deed to transfer real estate title should understand the specifics of New York law, and should consult a qualified real estate attorney to ensure the transaction is legally valid.
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