Introduction
Buying or selling property can seem like a tough maze of legal terms and processes. One key piece of this puzzle is the kind of deed used to pass on property. In Florida, quitclaim deeds and lady bird deeds are often used, each in its own way. In this easy-to-understand guide, we’ll talk about how these deeds work and when to use them. We’ll also look at different ways to share ownership, like joint tenants with rights of survivorship, tenants in common, and tenants by the entirety.
Quitclaim and Lady Bird Deeds Made Simple
Quitclaim deeds and lady bird deeds are instruments used to pass on real estate. A quitclaim deed is like saying, “I don’t want my claim on this property anymore” and giving it to someone else. This deed doesn’t promise the property is free from other claims; it just passes on whatever the current owner (the grantor) has to the new owner (the grantee).
A lady bird deed is a bit different. The current owner keeps control of the property while they’re alive, including the right to sell it. When they pass away, the property automatically goes to the person they’ve chosen (the beneficiary). This deed is a helpful way to plan for the future while avoiding probate of the property.
Common Uses of Quitclaim and Lady Bird Deeds in Florida
Quitclaim deeds and lady bird deeds can be used in many situations in Florida. Here are some common examples:
- After a Divorce: One spouse can use a quitclaim deed to give their share of a property they own together to the other spouse.
- Moving Property into a Trust: Quitclaim deeds can move property from a person to a trust, changing who legally owns it.
- Fixing Mistakes in a Title: If there’s a mistake in a property title, a quitclaim deed can fix it.
- Giving Gifts and Planning for the Future: Quitclaim deeds can be used to give property as a gift or to pass on inherited property. Lady bird deeds, on the other hand, can plan for the future, passing property to a chosen person when the current owner dies.
- In Business Deals: Companies can use quitclaim deeds to pass on property when they restructure, sell assets, or change owners.
- Marriage: Many use a quit-claim deed to add a new spouse or significant other to a property.
Sharing Ownership in Florida: The Basics
Understanding how to share ownership is key when dealing with quitclaim and lady bird deeds. In Florida, there are generally three ways to share ownership:
- Joint Tenants with Rights of Survivorship: Everyone owns an equal part of the property. If one owner dies, their part goes to the surviving owners, no matter what their will says.
- Tenants in Common: Each owner has their own share of the property, which can be different sizes. If an owner dies, their share goes to their chosen heir or as directed by their will, not the surviving owners. This type of deed often requires probate or summary administration to properly transfer ownership upon the death of an owner.
- Tenants by the Entirety: This special form of ownership, only for married couples in Florida, is like joint tenancy but also protects from debts.
Florida Document Specialists: We’ve Got Your Back
Typing quitclaim deeds, lady bird deeds, and shared ownership can be hard. But don’t worry – Florida Document Specialists is here to help. As Florida’s premier nonlawyer document preparation company, we’re experienced in crafting quitclaim and lady bird deeds according to your directions.
Our service offers it all: we draft the deed, notarize it online, and eRecord the deeds in the right county. Our attention to detail, high-quality service, and smooth process make us the go-to partner in your property transfer journey. If you’re thinking about using a quitclaim or lady bird deed, or have questions about the process, get in touch with Florida Document Specialists. Our team of specialists is ready to help.
Consider Consulting with a Licensed Attorney
Please note that this article is intended for informational purposes only and should not be viewed as legal counsel. Property transfers, even seemingly simple ones, can involve intricate elements such as the impact on homestead exemption and other considerations. It’s always recommended to consult with a licensed attorney in your state to receive personalized advice tailored to your specific circumstances.*
Frequently Asked Questions (FAQ)
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What is a quitclaim deed?
A quitclaim deed is a legal tool used to transfer real estate ownership from one person (the grantor) to another (the grantee) without any guarantees about the property being free from other claims.
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How is a lady bird deed different from a quitclaim deed?
A lady bird deed allows the current owner to retain control over the property during their lifetime and transfers the property to the beneficiary upon the owner's death.
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When is a quitclaim deed used?
A quitclaim deed is often used in cases of post-divorce property transfers, moving property into a trust, fixing title defects, gifting property, inheriting property, and business transactions.
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What are the applications of a lady bird deed?
Lady bird deeds are primarily used for estate planning, allowing property to pass automatically to a chosen beneficiary upon the grantor's death.
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What are joint tenants with rights of survivorship?
Joint tenants with rights of survivorship own an equal part of the property, and if one tenant dies, their share goes to the surviving tenants, regardless of what their will says.
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What does "tenants in common" mean?
Tenants in common each own a separate, potentially unequal share of the property. If an owner dies, their share goes to their chosen heir or as directed by their will.
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What is tenancy by the entirety?
This form of ownership is reserved for married couples in Florida. It's similar to joint tenancy, but with extra protection from creditors.
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Can a quitclaim deed transfer property into a trust?
Yes, a quitclaim deed can facilitate the transfer of property ownership from an individual to a trust.
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Can a quitclaim deed be used to correct errors in a property title?
Yes, a quitclaim deed can be used to correct inaccuracies in a property title.
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Can a lady bird deed be revoked?
Yes, as the grantor retains control over the property during their lifetime, they can choose to revoke the lady bird deed.
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Can businesses use quitclaim deeds?
Yes, businesses often use quitclaim deeds to transfer property during restructuring, asset liquidation, or ownership changes.
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Does a quitclaim deed ensure the property is free from liens?
No, a quitclaim deed simply transfers any ownership interest the grantor has to the grantee without any warranties.
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Does a lady bird deed impact Medicaid eligibility?
In most cases, property transferred through a lady bird deed does not affect Medicaid eligibility, but it's recommended to consult with a lawyer.
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What is the effect of a quitclaim deed on a mortgage?
A quitclaim deed transfers ownership interest, but it does not impact financial responsibility. The original borrower remains responsible for the mortgage.
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Can a quitclaim deed be contested?
Yes, like any legal document, a quitclaim deed can be contested, especially if there are claims of fraud or coercion.
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Can a quitclaim deed be used to add or remove a name from the property title?
Yes, a quitclaim deed can be used to add or remove a name from the property title.
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How does a lady bird deed affect property taxes?
Generally, the transfer of property through a lady bird deed does not trigger a reassessment of property taxes until the grantor's death.
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Can you use a quitclaim deed to transfer property to a family member?
Yes, quitclaim deeds are often used to transfer property between family members.
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Yes, a tenant in common can sell their share of the property without the consent of the other owners.
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Yes, a joint tenant can sell their share of the property, but it may change the ownership structure to tenants in common.
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What happens to a mortgage when a property is transferred via a quitclaim deed?
The original borrower remains responsible for the mortgage after a quitclaim deed is executed. The quitclaim deed does not transfer the mortgage.
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Do quitclaim deeds and lady bird deeds have to be recorded?
Yes, for a deed to be enforceable against third parties, it should be recorded in the relevant county recorder's office. Florida Document Specialists offers an eRecording service for the deeds they prepare.
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Can quitclaim deeds and lady bird deeds be prepared by a nonlawyer?
Yes, companies like Florida Document Specialists can prepare these deeds, although they don't provide legal advice.
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Can these deeds be notarized and recorded online?
Yes, Florida Document Specialists offers online notarization and eRecording of deeds.
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Do these deeds impact homestead exemptions?
Transferring a property might impact homestead exemption status and tax implications. It's recommended to consult with a lawyer.