Gift Deed

• A gift deed is the most common type of document used to give someone ownership of real property as a gift. This type of deed is used when the transfer is not made for monetary value. Gift deeds are typically used when property is transferred between friends and relatives. Gifts of property must be reported by the recipient on the recipient's federal income tax form. Gift deeds are irrevocable once given to recipients.
  
  

Gift Deed Restrictions

• The main disadvantage of transferring ownership of property using a gift deed is that the donor is still financially responsible for all property debts, including loans, liens and mortgages. Also, the state of Virginia does not define whether the donor or recipient is responsible for settling unforeseen claims made against the property after the transfer.
  
  

Quitclaim Deed

• A quitclaim deed, also known as a "deed of release," is a legal document used when someone wants to relinquish ownership or interest in real property. It is used to transfer jointly owned property to just one of the co-owners. It is frequently used when family members or divorcing spouses exchange property rights between each other without compensation. Quitclaim deeds must be signed by each co-owner and notarized by a Virginia Public Notary.
  
  

Quitclaim Deed Restrictions

• Although quitclaim deeds transfer the co-ownership of property to a sole owner, it does not relieve the grantor from any existing financial responsibilities or encumbrance on the property such as mortgage payments or tax liens. Additionally, if the property is owned by a third party, the quitclaim deed only removes the ownership rights of the grantor and all other owners still have claim on the property.