Am I Liable for Anything on the Property After I Quit Claim it to Another Person?
Full Question:
Answer:
Generally, a previous owner will not be liable for any debts attched to property after the date of sale. However, you may remain liable for any unrecorded claims before the sale date.
There are two basic types of deeds: a warranty deed, which guarantees that the grantor owns title, and the quitclaim deed, which transfers only that interest in the real property which the grantor actually has. The only type of deed that creates "liability by reason of covenants of warranty" as to matters of record is a general warranty deed. A warranty deed conveys specifically described rights which together comprise good title. The grantor warrants that the title is good, that the transfer is proper, and that there are no liens other than stated in the deed. The grantee can sue if the warranty is breached. A quit claim deed contains no warranties and the seller doesn't have liability to the buyer for other recorded claims on the property. The purchaser takes the property subject to existing taxes, assessments, liens, encumbrances, covenants, conditions, restrictions, rights of way and easements of record. The quitclaim is often used among family members or from one joint owner to the other when there is little question about existing ownership, or just to clear the title. If a deed is intended to be a general warranty deed, it should contain a phase specified by state law such as the phrase "conveys and warrants". These words, called operative words of conveyance, carry with them several warranties which the grantor is making to the grantee. An example of operative words of conveyance in a quitclaim deed is "convey and quit claim."
