Are you looking to transfer your interest in a property to another party? The transfer can be done with a legal document called a “deed.” There are two major types of deeds: a quitclaim deed and a warranty deed.
A quitclaim deed terminates your interest in a property, but it does not give protections to the beneficiary (the person receiving the interest). A quitclaim deed does not guarantee that the grantor (the person transferring the interest) actually owns the property; it merely states that the grantor thinks that she does have an interest. This type of deed is often used when there isn’t actually any money being exchanged with the transfer of the interest.
A warranty deed gives your interest in a property to the beneficiary and also gives certain protections to the beneficiary. With this type of deed, the grantor guarantees that she actually holds the title to the property and has the right to sell that property. The warranty deed also assures the beneficiary that there are no other people who may have claims to the property.
After the deed is filled out and signed, it must be recorded in the county in which the property is located. Each county has its own guidelines for what the deed must contain, so be sure to look at your county’s requirements.
You may also have to pay federal, state, or county taxes with the transfer. If you use a quitclaim deed and no money is exchanged, a gift tax might apply if the transfer of interest is not between spouses.