■ As property is transferred from one family member to the other, the transaction is treated as gift and, thus, has tax benefit.
■ This does not guarantee or assure the grantor’s or seller’s ownership.
■ No, the grantor does not warrant that he owns clear and legal title to the property.
■ The owner merely transfers the title of what he owns to another party.
■ This deed is not used during sale, rather is when the grantor is bequeathing the property after his death, adding spouse’s name to title, removing spouses name after divorce, or transferring it to a revocable trust.
■ The level of legal protection to the grantee is low.
■ The transaction may have higher risk.
■ If there are any problems with the title or a forgotten lien on the property, there is little legal help for the grantee.
■ The grantee does not have any right to claim compensation
■ Quitclaim deeds cannot be backed by title insurance.
■ This transaction may occur between parties who are well-acquainted or even related to each other.
■ They work well where the property is transferred from one family member to the other, and both parties know the details of this transaction; a third party is not involved.
■ There are chances that you can end up paying for a property that the seller does not own in the first place.