Deeds are the legal instrument used to transfer real estate from one person to another or from one person to a trust. In general, Arizona uses, Quit Claim Deeds, Beneficiary Deeds, or Warranty Deeds for transferring property.
Quit Claim Deeds
Quit Claim deeds are used to simply quit title in one manner and transfer the property without guaranteeing that the property is free and clear of loans, liens, encumbrances or other restrictions. Quit claim deeds are used to transfer property when no money changes hands, nothing has been sold, no title insurance is required, nothing has been exchanged and title has not been verified.
Therefore it is a simple means of transferring title from:
- An owner to their trust
- A trust to a beneficiary
- Between Family Members
- When a parent adds a child to a deed
- One spouse to another in the event of a marriage or divorce
Beneficiary deeds can be used as a cost-effective means of transferring property to heirs while avoiding probate. It simply names who you wish the property to be transferred to upon your death. A beneficiary deed avoids probate, can be revoked at anytime, has no gift tax liability, can name multiple heirs and is less expensive than setting up a trust when your estate is less than $75,000.00 in value.
Beneficiary deeds can be used to transfer property upon death to:
- A trust
- A spouse or partner
- A child, other family member or heir
- A charity, religious institution, educational facility, or other non-profit organization
A warranty deeds are usually used when property is sold from one person to another. It guarantees, or warranties, that the owner is allowed to the sell the property and has clear title and seisin without liens, claims, or encumbrances. It also verifies that the owner has the right to quiet enjoyment and the right to convey the property.
Some of the types of warranty deeds include:
- Individual Grantor to Two Individual Grantees
- Two Individual Grantors to Living Trust Grantee
- Living Trust Grantor to Individual Grantee
Special or limited warranty deed or quitclaim deeds may also be used to transfer property from individuals to trusts or to other parties. Some deeds may be used to add a person to a property; for example, a person who gets married while owning a property may add their spouse onto the deed of the property which then makes it jointly owned.
In order for a deed to be considered valid, certain information must be contained in the document including:
- Consideration – a dollar amount that exchanged hands between the parties
- Identification – the name and address of the parties involved
- Legal description – the description of the property including city and county where located
- Signatures – the signatures of all parties to the transaction
- Notary Signature – all deeds must be notarized
Effect of Deeds On Property
Once a deed has been executed, the property transfers in accordance with the terms of the deed. In some cases, there is a mortgage associated with the deeds. All deeds must be filed with the proper legal authority once they have been signed and notarized.
Whether you need a deed prepared because you are selling a property, transferring the property to your living trust or you wish to add another person as joint owner on your home, we can help with the necessary legal documents, preparing the deed, and helping you file the deed with the county. Contact Kramer Legacy Documents, LLC today at (623) 974-2272 for all your deed preparation needs.