Quit claim deed

What is a Quit Claim Deed?

A quit claim deed can be used to transfer ownership of an Arizona property. They are often mistakenly referred to as “quick claim” deeds. A quitclaim deed is often used when property is transferred between family members or in situations where the property ownership is changing but no money is being exchanged. This type of deed makes no guarantees about the condition of the title or the property, and only transfers the ownership rights the seller had.

Removing an owner

During a divorce, one spouse may want to remove the other as an owner of the property. Keep in mind that removing a spouse from the deed does not remove them from the mortgage. The mortgage is a separate issue that you will need to speak with your lender about.

Adding an owner

A quit claim deed can be used to add people to the title of a property. Perhaps someone owns a home and would like to add another person to the title. Maybe an investor takes on a partner and wants the partner added to the deed or a parent wants to add a child to the deed. This can have unintended consequences so be very careful adding children to the title of your home.

Often, when refinancing or obtaining a new mortgage, a bank will ask that one person signs a quit claim deed at closing. This often happens if one spouse does not have good credit. Perhaps you’d like to add your spouse back to the deed now that the loan has funded.

Multiple people 

A quit claim deed can also be used to add or remove multiple people from an Arizona property. For example, if three siblings own a home together as an investment, but one of the siblings wants out. A quit claim could be used to remove the one sibling, but keep the two on title.

Gifting

Another use for a quit claim deed would be gifting a property to someone else. Often parents help an adult child by purchasing a home and they eventually transfer ownership of the property to the child as a gift.

DO NOT add a child to the title of your home in order to avoid probate without being aware of the tax consequences and control issues. Consult an expert before you do this!