How does a waiver claim deed work?
People who own multiple real estate properties may, at some point in their lives, give a home to someone else, such as a sibling, give it as a gift to a child or grandchild, or sell it. During these cases, the law requires the landlord to execute a waiver claim deed to ensure that he will no longer claim interest on the property.
A waiver claim deed is a legal document that clarifies the title to the property. It is used in the transfer of an interest in a property to another person. By name only, it means that the owner waives any claim on a house or land. The person who renounces the claim is known as the grantor, while the one who accepts the property is called the grantee. The dealer assumes all risks, especially if no guarantees are made on the title.
However, the deed only transfers interest and does not guarantee whether the grantor actually has ownership rights to the property in question. It also does not guarantee that the property is debt free.
To be enforceable, the deed must be signed by the grantor, after which a notary public must sign and seal it. In some states, however, the dealer and other witnesses must also sign. In addition to a notary public, officials in states other than where the property is located can also notarize the deed.
There are different situations in which a waiver claim deed can be of great help. For married couples, a spouse who was able to purchase property before the marriage can add or remove their husband’s or wife’s name from the property title. In a divorce situation, a couple can transfer ownership of their marital property to one of the spouses.
During a home sale, a waiver deed executed at closing transfers the interest in the property from the seller to the buyer. In other words, the seller has full ownership rights and guarantees that he will not go after it no matter what happens.
Another situation in which deed can be used is if a certain owner plans an estate or living trust. In this case, the deed transfers ownership of your home to a trust fund.
If a life estate is involved, the grantor can still retain their right to own the property even after signing a waiver claim deed. A life estate generally gives the owner the absolute right to remain in the property until death. Only after the owner’s death can the dealer obtain the right to own the property.
It is important to understand that once the deed is signed, it will be difficult to reverse or undo the deed. Only if the dealer agrees to waive claiming the property back, can the previous owner re-own the property. Otherwise, the grantor must prove that the transfer was invalid.
A waiver deed is a valid option to waive property interests. But since this document does not guarantee the transfer of title or property rights, it is better that it be accompanied by a guarantee deed.