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It's usually a very straightforward transaction, but it's possible for a quitclaim deed to be challenged. If a quitclaim deed is challenged in court, the issue becomes whether the property was legally transferred and if the grantor had the legal right to transfer the property.
Due to this, quitclaim deeds typically are not used in situations where the property involved has an outstanding mortgage. After all, it would be difficult for many grantors to pay off a mortgage without proceeds from the sale of the property.
In fact, taxes may be due on a quit claim deed even when the property is transferred between spouses. With such transfers, if the property is mortgaged, then tax is generally due on half of the outstanding balance.
Under Florida law, a quitclaim deed is finalized by recording it in the country records. It is the most common way to transfer property to a family member, a trust, or your own LLC. In Florida, a quitclaim deed does not give any warranty of title.
To sell a home you received through a quitclaim deed, you will still need to transfer ownership using a warranty deed. To do this, you'll need to hire a title company to perform a title search, which will generally cost between $150 and $400, but can be much more depending on the property.
Once the quitclaim deed is recorded, it becomes part of the public record. You may also be required to pay a filing fee or costs associated with properties that have an outstanding mortgage. If there is money being exchanged for the deed, documentary stamp taxes will also have to be paid.