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- #202 Pennsylvania Quit-Claim Deed (with Red Coal Clause)
#202 Pennsylvania Quit-Claim Deed (with Red Coal Clause)
A PDF DOCUMENT THAT CAN BE FILLED OUT AND PRINTED FROM THE EASE OF YOUR COMPUTER (COLOR PRINTER RECOMMENDED)
A Quit-Claim Deed is used when a real estate property transaction occurs, transferring ownership without being sold. Usually, no money is involved in the transaction, no title search is done to verify ownership, and no title insurance is issued.
Quit-Claim Deeds are a quick way to transfer property, most often between family members. Examples include:
- When an owner gets married and wants to add a spouse’s name to the Deed, or
- When the owners divorce and one spouse’s name is removed from the Deed, or
- When parents transfer property to their children, or
- When siblings transfer property to each other, or
- For correcting information on an existing Deed (such as a misspelled name).
It is important to recognize that a Quit-Claim Deed impacts only the ownership of the house and the name on the property deed, not the mortgage. For instance, in the case of a divorce, if both ex-spouses’ names are on the home mortgage loan, they are both still responsible for the mortgage payments, even if a Quit-Claim Deed has been filed.
One of the biggest benefits to using a Quit-Claim Deed is the fact that it avoids title search or title insurance. However, you should note that Quit-Claim Deeds are usually not used for real estate sales, considering the new owner will not receive any guarantee related to the validity of the title.
Warranty Deeds, however, which are used in most Real Estate Sales transactions, state that the Grantor (previous owner) is the owner of the property and has the right to transfer the property to you (the Grantee). In addition, the Warranty Deed serves as a statement that there are no liens against the property from a mortgage lender, the Internal Revenue Service, or any creditor, and that the property can’t be claimed by anyone else. Title insurance provides the financial backup to the Warranty Deed and requires a title search to verify that no other claims, encumbrances, easements, or liens on the property are outstanding.