What a Quitclaim Deed Is

• A "deed" is a written instrument by which an owner of real estate transfers his interest to somebody else. There are several different types of deeds a grantor -- the person transferring the interest -- can sign, the key difference being the warranties the grantor makes with each type of deed. With a quitclaim deed, or a nonwarranty deed, the grantor makes no warranties at all; he simply gives you whatever interest he has or may have in the subject property. He's not guaranteeing good title or the absence of liens or even that he owns an interest in the property period; he's simply saying, "Whatever I have is now yours."
  
  

Quitclaim Deeds and the Mortgage

• You can transfer your interest in a home to your ex-spouse with a quitclaim deed, but this doesn't get you off the mortgage. All it does is release your interest in the property so that the other party can refinance it -- or not refinance it. If all you do is sign a quitclaim deed and walk away from a joint mortgage, the creditor can come after you in the event of nonpayment. You will be liable on the loan for a house that isn't yours anymore.
  
  

Quitclaim Deeds and Creditors

• Since all a quitclaim deed does is make a nonwarranty transfer of a party's interest in land, all of the liens and judgments that were riding on the property before the deed was signed will remain afterward. The existence of judgments against a party to a divorce case will have different effects depending upon your state. In states where you can hold property with a spouse as "tenants by the entirety," judgments against either spouse don't attach to jointly held land until a divorce is entered. These states are in the minority, however. In most jurisdictions, a quitclaim deed from a spouse won't affect the rights a creditor of that spouse has against the land.
  
  

What Can Make a Quitclaim Deed Ineffective

• A number of things can invalidate a quitclaim deed, so doing one without the assistance of an attorney is generally a bad idea. A deed must sufficiently describe the property that is being transferred in order to be effective against future claimants. What this means is, if you mess up the legal description and an heir or creditor of the grantor later tries to lay claim to part of the land, your quitclaim deed might be held invalid. A quitclaim deed must also be recorded with the register of deeds or an equivalent official in the county where the property is located.