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Mecklenburg county uses a "warranty deed" for property. You do not get this deed in the mail.
A warranty deed is a document that grants the title to the new owner from the previous owner. It refers to the property described in a Map book at the county Register of Deeds. The warranty deed is registered with the county government.
Whenever the owners of the property change, you call a lawyer who will issue a new warranty deed. You might also need to issue a new warranty deed if you decide to change survivorship if there is more than one owner. Quick tip. Deed survivorship trumps an estate. (will)
The advantage of this system is that legal changes can be made to the ownership of the property without actually changing the document that describes the property. (map book)
A number of states use this method and it's not unique to NC. In many ways its a far superior way to handle property transfers.
Now for the OP's question. A quick claim deed is not a deed. It is a process used to remove an owner from an existing warranty deed. They are most often used in divorce situations and don't represent anything unusual or strange in regards to title insurance. Quick claim deeds can also be used should you pay off the property and the mortgage company removes their interest from the warranty deed.
If Dad decides to issue a quick claim deed to remove himself from the property, then no big deal.
Quitclaim deeds are used for a variety of reasons in North Carolina. As stated above, they are often used in divorce situations for one spouse to transfer their ownership to the other. They are often used to clear up clouds on title and can be used to transfer title in situations such as yours from one family member to another. It is best, however, for a prospective buyer or new owner to obtain title through a general warranty deed. The term is quitclaim deed, not "quick claim" deed. You can download forms from the internet and fill in the form on your own from many websites but it is best to get an attorney to prepare the deed for you. There are many attorneys around that will prepare a deed at a reasonable cost. Attorneys have the appropriate form for North Carolina and know the state requirements. Sometimes the internet versions are not state appropriate. Quitclaim deeds prepared by non-attorneys often create issues in the chain of title because of insufficient or incorrect legal descriptions or failure of all parties with an interest in the property to sign (i.e. spouses of property owners, etc.). The title insurance companies will insure a quitclaim deed based on the language in the deed itself and receipt of a title opinion from an attorney. If you want title insurance you would have to have an attorney perform a title search on the property and certify the title to a title insurance company.
But some people use it for other reasons that may not be discussed here
Some tricky, dicky, smarty pants ppl. think they can walk from some of their assets by using this process. I can think of several instances that millions of people have thought about or have tried.
Ex: Heavy, heavy, hospital bills. Afraid of leaving the hospital and not being able to pay. So instead of having their house attached after a couple of years of legal hassel they quit claim it. Or, owner is a couple of years away from saying good-bye to us and wants to transfer the asset tax free to his family so he quit claims the property over (less than 5 years) before dying.In both of these examples you will get caught at some point or another.
If an attorney lied to get one spouse to sign it and assured them they would not be liable, but the name is never removed due to inability to refi, kiss your credit good bye and yes, if they default, the mortgage company comes after you. Make a set date to refi or required otherwise “null and void”. In a divorce, 10 years ago, I was tricked. My credit impacted and held hostage as my ex isn’t able to refi due to his bad credit and a foreclosure. My advise, don’t do it. If you do, as mentioned, make sure you have a hard case and a set date to refi. The quit deed takes away your right to the property, and you get nothing if it sells, but you’re on the hook and it counts against your debt ratio on your credit. Further, wondering IF it sells, or he refis, since the mortgage company refused (And so does the credit bureau, even after sending the qd in) Shouldn’t they require my signature ?
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Quitclaim deeds
