Should Quit Claim Deeds Be Used For Non-Sale Transfers Of Real Estate?
Quit Claim Deeds.
I am often asked to prepare, or asked if it’s ok to use, quit claim deeds for transfers not involving the sale of real property such as transfers into a family trust, adding a new spouse to the title, moving investment property from personal ownership into an LLC or corporation.
I almost never use quit claim deeds for these transactions for one reason: If the transferring party took title to the property with a warranty deed or bargain and sale deed, using a quit claim deed to transfer the property will destroy the protections in the earlier deed form. Use the same deed form as when you took title. Advise your clients to do the same.