Most properties are sold in Florida with a property deed. However, there are times when the owner did not purchase the property. Family members of the deceased are the most common owners of quitclaim deeds, but the property still comes with some risk.
According to the Florida Legislative website Sunshine Online, “grantees by quitclaim … shall be deemed and held to be bona fide publishers without notice within the meaning of the recording acts.” The property must be acknowledged by the court or witnessed by a notary public. If witnesses and grantors are not available, the judge of the court can use available witnesses to validate the property.
A quitclaim deed may exist to correct deed defects such as misspellings. The law allows for a new record to be created should the person owning the property demand it. There is no charge for correcting the record.
Investopedia warns investors to be cautious. Since the quitclaim deed comes with the least amount of title protection, it carries more risk for the purchaser especially if they do not know the existing owners. These types of deeds are most commonly used between family members because the change in title does not affect the mortgage itself.
Before considering buying property with a quitclaim deed, be sure the title is free and clear. Ensure the deed has all the necessary information for it to be legal in the state. The cost to look into the property title can save you thousands down the line in court costs.