- posted: Sep. 01, 2021
In New Jersey, a quitclaim deed is a legal instrument that transfers property between parties. It is a deed that transfers fee title and legal interests in real property from the grantor to the grantee. In New Jersey, a quit claim deed conveys title in fee simple without any covenants or warranties of title. This means that t his type of deed does not guarantee any protections for the buyer, or grantee. Therefore, it does not guarantee that there are no encumbrances on the land, nor does it guarantee that the seller has legal authority to sell the property. It does ensure however, that the seller will not return to claim an interest on the property, after the deed is executed and recorded. However, the quitclaim is advantageous over other types of deeds in that it is incredibly efficient and quit to execute, in comparison to other deeds. Quitclaim deeds only require that parties sign and draft the quitclaim deed. The parties must then have the deed notarized, and then have it recorded with the County Clerk or Registrar of Deeds in the county where the property is located. There are no additional steps necessary or required, as there are in conveyances of lands through other Deeds.
To write a quitclaim the following information is necessary to be provided on the deed: the Preparer’s name and address, Name and mailing address to whom the recorded deed should be sent, county where the property is located, name and address of the Grantor and Grantee, the legal description of the property, the signatures of the Grantor and Grantee, and the Notary Public’s signature and seal.
Since Quitclaim Deeds do not offer much protection for the Grantee, it is advisable, and typically used as such, in transactions wherein the grantee is purchasing or receiving land from someone they trust, usually a family member, close friend, a trusted partner, or a loved one. For example, a couple may own property in a tenancy by entirety, and one spouse may wish to give his partner his share of the property. He can do so, quickly and effectively, via a Quitclaim Deed, thus giving his share of the property to his partner, and she like has the confidence that it is done so without any encumbrances on the property (as she jointly owned it with him).
Whereas, a warranty deed contains a guarantee that the grantor has legal title and rights to the real estate. This means that in a warranty deed, the grantor promises that the title is clear of any claims. A warranty deed offers better protection to the grantee. If property does end up having a defect, the grantee can sue the grantor for damages. Warranty deeds ensure that the grantor has the right to sell the property, and guarantees that there are no liens or encumbrances against the land.
It is thus important to seek expert's help in order to determine what type of deed is better for you. In the event, our services are required, our attorneys are available for help on these matters and can be contacted at 609 844 1256 or 1866 995 6540.
Author: Rithvick Bhagwati, Esq. (Partner at Bhagwati and Bhagwati, P.C)
Vijay Bhagwati, Esq.
Founder and Managing Partner
