A quitclaim deed is what some people think is called a “quick” claim deed – but the correct terminology is quitclaim deed. In North Carolina, a quitclaim deed is a document that is signed by two parties with the purpose of transferring one party’s interest in real estate to another party.
When Is A Quitclaim Deed Used?
A quitclaim deed is usually used when property is being transferred as part of a divorce proceeding or as a gift between family members, because a quitclaim deed does not give a warranty as to the title of the property. On the other hand, when a house is sold through a regular sale between two parties who are not family members, and there is a title warranty, a warranty deed is usually the type of deed that is used.
Should I Sign a Quitclaim Deed?
In North Carolina, if you are asked to sign a quitclaim deed, be sure you are aware of your rights, and talk to an attorney about your rights if necessary. Generally speaking, it is not a good idea to sign a quitclaim deed before filing bankruptcy due to the look-back period for transfers of property. However, it may make sense for you to sign one after a bankruptcy is filed, even if you are surrendering the property in your bankruptcy. You should speak with a bankruptcy attorney if you are considering signing a quitclaim deed prior to filing bankruptcy.