What Is a Quitclaim Deed in Florida: Rules and Regulations

Published April 24, 2024

The most straightforward way to communicate property ownership is via a quitclaim deed. But what are they, and how do they work, along with its rules and regulations? Quitclaim deeds are relatively informal. They are usually used to transfer property quickly.

If you are in a situation where you think it might be called for, you must educate yourself. They are often misunderstood and, if incorrectly done, can seriously cloud the title.

In this article, we’ll discuss everything you need to know about quitclaim deeds in Florida, including how they can help you and the rules and regulations you must follow. Let’s start.

What Is a Quitclaim Deed in Florida?

Quitclaim deeds are legal accounts used to transfer ownership, in whole or in part, from one person to another.

Unlike other kinds of deeds, they do not yield warranties or protections that the interest being shifted is clear, marketable, or legally owned by the party facilitating the transfer.

The transferring party is acknowledged as the grantor. The person receiving the property is referred to as the grantee.

A grantor cannot transfer more interest in a property than they own. The grantee can only acquire a maximum of what the grantor owns at the time the deed is transferred.

Suppose a grantor has a clear and marketable title, and the grantee secures a clear and marketable title, too. Yet, if the property is encumbered in a manner that affects the grantor’s ownership, a quitclaim deed passes the same dilemma to the grantee. For this reason, quitclaim deeds should only be employed between closely known parties. Trust plays a massive importance in them.

Requirements for Quit Claim Deeds in Florida

In the state of Florida, quitclaim deeds must embody specific information as stated in section 695.26 of the Florida Statutes to be recognized as valid. All of them must clearly state the following:

• The name of the property’s current owner who intends to transfer some or all their interest. (Grantor)
• The name of the person or entity receiving the grantor’s interest in the property. (Grantee)
• The money or value is given to the grantor in exchange for their interest in the property. (Consideration)
• The formal legal description employed to identify the property
• The signature of the grantor
• The signature of two independent witnesses, one of whom could be the notary
• The stamp, along with the signature of a notary licensed in the jurisdiction where the deed is being signed.

When To Use a Quit Claim Deed

• To effectuate a marital settlement agreement.
• When a person seeks to transfer property to their legal entity or a living trust for estate planning purposes.
• When transferring property to closely known individuals such as family members.
• Quitclaim deeds cannot be performed after the death of a current owner to move that owner’s interest. The account needs to be executed by the deceased owner.

What Are the Benefits and Limitations of Using a Quitclaim Deed?

1. Simplicity and speed

Quitclaim deeds are among the most straightforward and fastest routes to transferring property rights. They require fewer documents and less formal procedures than other types of deeds.

2. Cost-effectiveness

Quit Claim deeds are simple, which reduces their costs. They also don’t necessarily require an attorney.

3. Flexibility in transferring interests

Quitclaim deeds make for the easy transfer of interests in property. It is the case, whether partial or full, without the need for extensive documentation or warranties.

4. It is ideal for transactions among familiar parties.

They are beneficial for transactions between family members or associates. It helps where there is a high level of trust and the property’s history is relevant.

5. Helpful in clearing title defects

Quitclaim deeds can be used to clear defects in the title. They do so by transferring disputes or unclear interests in a property to correct or eliminate potential issues.

Limitations

1. There are no guarantees on the title.

The major limitation of a quitclaim deed is that it offers no warranties or guarantees. It is both in the grantor’s ownership of the property and the state of the property title. The grantee receives only whatever interest the grantor has, which could be nothing.

2. Potential for future disputes

Given the lack of warranties, the grantee has limited legal recourse against the grantor if issues arise with the property title later.

3. Not ideal for commercial transactions

Quitclaim deeds are not suitable for buyers in commercial real estate transactions. They severely lack protection regarding the title’s quality.

4. Mortgage and lien issues are unaffected.

Quit Claim deeds transfer property without affecting any existing mortgages or liens. If the grantee is unaware, they may unknowingly inherit debts and obligations tied to the property.

5. It may affect title insurance.

Quitclaim deeds do not promise a clear title. Thus, obtaining title insurance for a property transferred this way can be more challenging or expensive for the grantee.

Rules and regulations of a quit claim deed

1. Legal description and execution

A quitclaim deed must specify a legal description of the property being transferred, state the property’s boundaries, and provide any other identifying details. It must also be executed according to Florida laws, involve signing by the grantor, and sometimes require notarization.

2. Delivery and acceptance

A quitclaim deed must be delivered to and accepted by the grantee to be effective. It will signify the grantor’s intention to transfer the title immediately.

3. Recording

Recording is not always required for validity. Yet, it can act as a public notice of the modification in ownership and protect the grantee’s interests against third-party claims.

4. No warranties

Quit Claim deeds come with no warranties. The grantee receives only whatever interest the grantor has in the property.

5. Use cases

Quitclaim deeds are commonly used in non-sale situations, such as transferring property between family members, divorcing spouses, or into a trust. They are also employed to clear up title issues.

6. Impact on mortgages

Transferring property via a quitclaim deed does not affect any mortgage or lien against the property.