A Colorado quit claim deed transfers interest in real estate to another person or entity. It doesn't guarantee that the property is free of debt or liens. The quitclaim deed is used to complete an efficient property transfer between parties who are known to each other.
A Colorado quit claim deed is a common legal document that transfers interest in real property, such as land or a building, to another person or organization. The party transferring interest is called the grantor. The party receiving interest is the grantee.
A quit claim deed can be obtained from an attorney, a real estate agent, from one of the many businesses that sell legal documents or even downloaded online. Be sure to specify that the deed is for Colorado. The only parties required to sign the quit claim deed are the grantor and the notary public. The grantee is named on the quit claim deed but does not have to sign it. The deed is then filed at the County Clerk and Recorder's Office in the county where the property is located.
Common Reasons to use a Quit Claim Deed
The most common reasons to use a quit claim deed are to remove one spouse's name from the title after a divorce, or to transfer some interest in the property to a new spouse. You might also use a quit claim deed to gift property to a family member or other individual, or to transfer interest in real property to a living trust.
Limitations of a Quit Claim Deed
A Colorado quit claim deed only transfers interest in and ownership of a property. It does not guarantee that the property is free of debt or liens and that no one else claims to own it. It doesn't even guarantee that the grantor actually has an interest in the property in the first place. If you're selling property to a third party who's unrelated to you, you'll want to use a warranty deed instead. A warranty deed guarantees that the property has a clear title and that there are no liens attached to the property.
Quit claim deeds can be very difficult to undo. The grantor no longer has any interest in the property after the deed has been signed and notarized. Creating a new quit claim deed transferring interest back to the original grantor is the only way to restore his ownership right if he changes his mind.
Information Needed for Colorado Quit Claim Deed
The following items are needed to execute a Colorado quit claim deed: You'll need the names of the grantor and grantee, a legal description of the property which includes street address, plot and subdivision, the dollar value or purchase price of property (also called consideration) and the signatures of the grantor and notary public. The dollar value is typically $1 or something negligible because you're not actually selling the property.
If the dollar value of the property is over $500 for some reason, you must attach a Real Property Transfer Declaration, also known as a TD-1000, to the quit claim deed.
Quit claim deeds are very difficult to undo. Once a quit claim deed has been signed and notarized, the grantor has no interest in the property. To regain interest, the grantee needs to sign a new quit claim deed transferring interest back to the original grantor.
- Hand and document at the meeting image by Dmitry Goygel-Sokol from Fotolia.com