When transferring real estate in Mississippi, choosing the right type of deed is crucial. Two of the most common types are quitclaim deeds and warranty deeds. While both accomplish the same fundamental goal – transferring ownership – they offer very different levels of protection.
Yes, it is QUITclaim Deed not QUICKclaim deed (as sometimes erroneously referred to). A Quitclaim Deed transfers whatever interest the grantor (person transferring the property) has in the property, if any, with no guarantees about the quality or status of the title. That means if the grantor doesn’t actually own the property – or only a part of it – the grantee (person receiving the property) accepts the risk. Here are some common uses of Quitclaim Deeds: (1) Transferring property between family members; (2) Removing a spouse from a deed after divorce; (3) Adding a spouse to a deed after marriage; (4) Transferring property from individual name into a trust or LLC; or (5) Clearing up title issues.
A Warranty Deed, on the other hand, provides a guarantee from the grantor that they own the property free and clear and have the legal right to transfer ownership. The grantor also guarantees that the property being transferred is free from any encumbrances, such as liens or ownership disputes that would be unknown to the grantee. Here are some common uses of Warranty Deeds: (1) Traditional home/land sales and purchases; (2) Any real estate transaction involving a mortgage; or (3) Transfer involving unrelated parties.
To understand more about the difference between the various deed types and what may be best for your situation, contact us at Sullivan Law Firm!
*THIS POST IS IN NO WAY INTENDED TO GIVE LEGAL ADVICE OR CREATE AN ATTORNEY-CLIENT RELATIONSHIP. PLEASE CONTACT OUR OFFICE TO SET UP A CONSULTATION AND TO EXECUTE AN ENGAGEMENT AND FEE AGREEMENT.