What Are Quitclaim Deeds?

When two parties share ownership in a piece of real estate and one wants to be removed from further obligation, quitclaim deeds are the most common method used to remove the party.

A quitclaim deed is used to remove an individual's right to any ownership in a particular piece of property and transfer all rights to the remaining party. These particular deeds are commonly seen in cases of divorce. The judge will order the home become the property solely of one of the two parties and will stipulate that the remaining party be removed via a quitclaim. Quitclaims are usually handled during the closing on a refinance. If the individual who was ordered to be removed fails to be removed from the remaining mortgage, he or she will still be obligated on the mortgage but will have no ownership interest in the property. Other instances in which quitclaim deeds have been common are when a home has been foreclosed upon for unpaid taxes and when an owner is setting up a trust. The city or state will have the current owner removed and apply all ownerships rights over to the new party. Quitclaim deeds are filed to transfer ownership from the individual to the living trust.