Wednesday, August 15, 2012

Why Use a Quitclaim Deed for Real Estate Ownership Change in Trusts, Divorce and Timeshares

Quitclaim deeds can be used to:

* Transfer Hawaiian real estate property into a trust
* Add a spouse as co-owner to real estate property in Hawaii
* Remove a spouse as co-owner to Hawaii real estate property due to divorce or dissolution of marriage
* Add or remove a domestic partner as co-owner to Hawaii real estate property
* Give away a timeshare estate located in Hawaii

In Hawaii, not only must the deed be prepared, it must also be recorded with the Bureau of Conveyance

Why a Quitclaim Deed?

Quit claim deeds are for change in real estate ownership that have no consideration or assumption of debt. A quitclaim deed does not contain any implied warranties.

The owner who quitclaims real estate simple conveys whatever ownership interest he or she has along with any debt or loans secured by the property. The quitclaim owner makes no promises and the property is taken "as is." A quitclaim is the easiest and cheapest way to transfer ownership to a trust, add or remove a co-owner or give away a timeshare.

Why Record the Deed?

Not only must a quitclaim deed be properly prepared, the original deed must be physically presented to the State of Hawaii's Bureau of Conveyance for the public record. The deed must be made part of the public record so the world knows there has been a change of ownership.

Hawaii is the only state in the nation with a single statewide recording office. There are two systems of recording in the State of Hawaii. The Regular System basically serves to give "notice" that something is on record. The Regular System is similar to the recording by county found in the other states.

There is also the Land Court System. Land Court issues certificate of titles to owners of land. Ownership in Land Court is guaranteed by the State of Hawaii.

Documents are recorded either in the Land Court system, the Regular System or both, depending on which system the land was originally recorded. When recorded in both land systems, documents are said to be recorded in the "Double" System.

Make it Legal...

A properly prepared quitclaim deed must have a legal description so the Bureau of Conveyances can add the deed to the public chain of title. The legal description is not the street address. The legal description has at a minimum the map, block and lot number of the real estate property. The Bureau will not accept a quitclaim deed without a legal description.

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