What Is a Fair Amount to Put on a Quitclaim Deed?

Deed

• A deed is a legal document used to convey interest or title in property from the grantor to the grantee. Some deed forms, such as the general warranty deed, conveys title to the property and offers certain warranties and guarantees to the grantee. The quitclaim deed only conveys interest the grantor may have in property and makes no promises or guarantees. Therefore, the value amount of the quitclaim deed is proportional to the interest it conveys. A quitclaim deed issued by a grantor who doesn't hold title to the property might have no value, while a quitclaim deed issued by a grantor with title has more value.
  
  

Equitable Title

• One use for a quitclaim deed is to clear an equitable title claim. Equitable title is the interest a buyer has in real property after an accepted purchase contract but before the transfer of title. If the buyer cancels the contract, the seller may ask the buyer to sign a quitclaim deed, releasing any interest in the property gained by virtue of the purchase contract. While the grantor in this case does not own the property, the quitclaim deed is not worthless. It has value to the seller, as the quitclaim deed clarifies the former buyer's intentions, thus making future offers for the property less complicated.
  
  

Value and Date

• When estimating the value of the quitclaim deed, consider its issue date. The quitclaim deed only conveys interest the grantor has as of the issue date of the deed. It does not apply to any interest the grantor had prior to the issue date or after the issue date.
  
  

Quitclaim Laws

• The grantor signs and notarizes an enforceable quitclaim deed. Real estate laws vary by state, as do laws and regulations regarding deeds and the filing of quitclaim deeds. Assigning a quitclaim deed does not negate any debts on the property. If the grantor has title to the property, the quitclaim deed effectively conveys title; yet if the property has liens, such as property tax or mechanics' liens, those debts remain with the property. Therefore, the value of the quitclaim might be less if the title it conveys is laden with debt.