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While transferring property via Quit Claim Deed may seem simple, there are some issues to consider before utilizing a Florida Quit Claim Deed.
- Proof of Ownership – A formal title review is not required to transfer property via Quit Claim Deed, which means there is no proof or guaranty that the transferor is authorized to transfer the property.
- Title Insurance Policy Cancellation – Title insurance protects a current owner from third-party claims on a property that arise after a real estate closing. Transferring title via Quit Claim Deed may void an Owner’s Title Insurance Policy leaving the current owner exposed to third party claims.
- Florida’s Homestead Tax Exemption – Transferring property via Quit Claim Deed may lead to the exemption being significantly reduced or even lost entirely if improperly transferred to a homeowner who does not qualify for Florida’s Homestead Exemption.
- Mortgage Acceleration Clause – If subject to a mortgage, transferring property via Quit Claim Deed may trigger a mortgage’s acceleration clause. Lenders consider certain transfers without prior approval a breach of the loan agreement.
This list, while not exhaustive, offers a glimpse into the pitfalls of utilizing a Quit Claim Deed to transfer property. There are many alternatives available to ensure you are adequately protected. Scarnecchia Mullin can assist with all your real estate legal needs. Contact us today to learn more and receive the legal assistance you require.