Can You Sell Your House With a Quitclaim Deed in Chicago, IL? Step-by-Step Guide

Situations Where Quitclaim Deeds Are Used to Sell Property

Quitclaim deeds are almost always used between people who already know each other. You’re not going to use one when some random buyer responds to your Zillow listing. That would freak them out, and well, it should. But there are times when a quitclaim deed is exactly what you need to get property transferred without any complications.

Divorce Settlements and Property Division

Divorce is probably the most common reason people use quitclaim deeds in Chicago. One spouse needs to get off the title so the other can keep the house, refinance, or sell it later. It’s usually part of the divorce settlement, and your lawyer will tell you this is how it’s getting done.

The spouse who’s leaving signs the quitclaim deed, and they’re off the title. However, signing that deed doesn’t get you off the mortgage if there’s one on the property. You’re still legally responsible for that loan until it gets refinanced or paid off. This means your ex could stop making payments and tank your credit even though you don’t own the house anymore. 

This is the reason why most divorce attorneys will push for a refinance as part of the settlement, but that doesn’t always happen right away.

Transferring Property Between Family Members

Parents transfer houses to their kids with quitclaim deeds all the time. Siblings split inherited property. Grandparents deed their house to grandkids. These transfers make sense because everyone involved already knows the property’s history and condition.

Your mom isn’t trying to scam you when she signs over the family house. She knows exactly what she’s giving you, and you probably grew up in that place anyway.

There’s no need for all the protections and guarantees that come with warranty deeds when you’re keeping things in the family. Plus, quitclaim deeds are way cheaper and faster than going through a traditional sale process.

You’re not paying real estate commissions, title insurance premiums, or dealing with inspections and appraisals. Just get the deed signed. Then notarize it and record it with Cook County. You’re done!

Clearing Up Title Issues Before a Traditional Sale

Sometimes your property title has issues that need fixing before you can sell the house properly.

Maybe your ex-spouse from 15 years ago is still on the title even though they haven’t lived there in forever. Or your late uncle’s name is on the deed, and you need to clear it for the estate. It may also be that you added your girlfriend to the title back in 2010, and now you need her off before you can sell.

Quitclaim deeds fix these problems easily. The person with the unwanted interest signs a quitclaim deed, removing themselves, and your title will get clean enough for a regular sale with a warranty deed.

Title companies love this because it resolves issues without needing a full quiet title lawsuit. This costs thousands of dollars and takes months.

Removing Someone From the Title

This happens more than you’d think, and it’s not always because of divorce or breakups.

Sometimes you added someone to your title as a favor or for estate planning, and now it’s creating problems. Or you put your sister on the deed to help with Medicaid planning, but now you want to refinance, and the lender won’t do it with multiple owners.

A quitclaim deed gets them off the title without needing to involve lawyers or go through a complicated legal process. They sign, you record it. That’s it!

Estate Planning and Inheritance Transfers

A lot of people use quitclaim deeds as part of their estate planning. Your estate attorney might have opinions about whether that’s the smartest move for your situation.

Parents will quitclaim their house to their kids while they’re still alive to avoid probate later. It works, but it can create some tax headaches depending on how much the property is worth and what state you’re in.

The benefit is that when the parent dies, the house doesn’t have to go through probate court because it’s already in the kid’s name. The downside is that the kid loses the stepped-up basis they would’ve gotten if they inherited it normally. This could mean a bigger capital gains tax bill if they ever sell.

Illinois doesn’t have an inheritance tax, but the feds definitely care about this stuff when properties are worth a lot.

Adding or Removing a Spouse After Marriage

You got married and want to add your new spouse to your Chicago house title. Or you’re trying to remove your spouse for estate planning or asset protection reasons. Quitclaim deeds handle both situations easily.

Adding a spouse is super common. You owned the house before you got married, and now you want it to be “ours” instead of “mine.” One quitclaim deed later, you’re both on the title as joint tenants or tenants by entirety, depending on how you want it structured.

Removing a spouse is less common but happens for things like protecting assets from business liability or qualifying for certain programs that have income or asset limits. Just remember that if there’s a mortgage on the property, the lender might have something to say about you changing the title without their permission.

Sell your home for cash in Chicago and other cities using a quitclaim deed, fast, simple, and stress-free.

How to Sell a House With a Quitclaim Deed in Chicago, IL: Step-by-Step Process

So you’ve decided a quitclaim deed is the right move for your situation, right? Here’s what you gotta do next.

Step 1: Determine If a Quitclaim Deed Is Right for Your Situation

Before you do anything else, make sure a quitclaim deed actually works for what you’re trying to do. If you’re transferring property to family or handling a divorce, you’re probably good.

If you’re trying to sell to someone who needs a mortgage, stop right now because their lender is going to shut that down. Banks want warranty deeds with title insurance, and they’re not going to budge on that.

Also, think about whether the person receiving the property is going to freak out when they realize you’re not guaranteeing anything about the title if they trust you completely and understand what a quitclaim deed means. If they’re going to panic or demand protections you can’t give them, this isn’t going to work.

Step 2: Agree on Terms With the Buyer or Recipient

You need to get everyone on the same page about what’s happening here. If money is changing hands, you need to decide on the price and payment terms. If it’s a gift or divorce transfer, make sure everyone understands who’s getting what and when.

Talk about whether the property has a mortgage and how that’s getting handled. Remember, the quitclaim deed doesn’t touch the mortgage at all, so if there’s a loan on the property, you need a separate plan for dealing with it.

Get everything in writing, even if you’re dealing with family, because memories get fuzzy and disagreements pop up years later. You don’t need a formal contract necessarily, but at least have an email trail or text messages showing what you all agreed to.

Step 3: Obtain and Complete the Illinois Deed Form

You can get a quitclaim deed form from the County Clerk’s website, from an office supply store, or from a title company. Some people use online legal forms, which is fine as long as you’re getting one that’s specifically for Illinois.

The form is quite simple. Of course, you’ll need the legal description of the property, which you can pull from your current deed or your property tax bill. You’ll also need the names and addresses of everyone involved, as well as state what you’re transferring.

Don’t be too ornamental with the wording or add extra clauses unless you really know what you’re doing. Illinois has specific requirements for how deeds need to be formatted. If you don’t follow their rules, the county might reject your filing.

Step 4: Get the Deed Notarized

Every single person signing the deed has to do it in front of a notary public. This isn’t optional, and you can’t fake it or do it later. The notary is verifying that you are who you say you are and that you’re signing voluntarily.

That said, bring your driver’s license or state ID because the notary needs to see it. You can find notaries at banks, UPS stores, law offices, or you can hire a mobile notary to come to you.

Most charge between $10 and $25 per signature. If multiple people are signing, everyone needs to be there at the same time. Otherwise, you need to have separate notarization sessions for each person and make sure the notary marks it correctly on the form.

Step 5: File the Deed With the Cook County Recorder’s Office

Once the deed is signed and notarized, you’ve got to record it with the County to make it official. You can do this in person at the county recorder’s office, by mail, or online if you set up an account with their system. The deed isn’t legally effective until it’s recorded, so don’t skip this step thinking you’ll do it later.

Usually, you will be charged a recording fee that changes occasionally but usually runs around $75 to $100. They’ll stamp the deed with the date and time it was recorded. Then, they’ll assign it a document number and add it to the public record.

Keep multiple copies of the recorded deed because you’ll need them for taxes, insurance, and proving ownership later.

Step 6: Pay Required Transfer Taxes and Recording Fees

Illinois has a transfer tax that applies to most property transfers, even quitclaim deeds. The state tax is 50 cents per $500 of property value, and Chicago adds its own tax on top of that. The specific county might have additional taxes depending on where exactly your property is located.

Some transfers are exempt from transfer tax (like transfers between spouses or certain family transfers), but you need to claim the exemption on the deed and provide proof. If you don’t pay the correct transfer tax, the county can come after you later for the money plus penalties.

The recording fees are separate from transfer taxes and just cover the county’s administrative costs for processing and storing your deed.

Step 7: Handle Any Outstanding Liens or Mortgages on the Property

Signing a quitclaim deed does not pay off the mortgage. It does not remove liens. It does not cancel property tax debt. All of those stay with the property regardless of who owns it.

If you’ve got a mortgage and you’re deeding the property to someone else, your lender might consider that a “due on sale” clause violation. They can demand immediate payment of the full loan balance. Most lenders don’t actually enforce this for family transfers, but they legally can.

Property tax liens stick with the property forever until they’re paid. If the new owner doesn’t know about them, they could lose the property in a tax sale. Additionally, mechanics’ liens, judgment liens, and HOA liens remain in place.

You need to either pay these off before transferring or make damn sure the person receiving the property knows exactly what they’re taking on.

Step 8: Provide Copies to All Parties Involved

Once everything is recorded, make copies of the final recorded deed for everyone involved in the transfer. The person receiving the property needs it to prove ownership. You need it for your records in case there are questions later.

If there’s a mortgage company involved, they might want a copy even though it doesn’t affect their lien. Your insurance company needs to know about the ownership change.

The property tax assessor will eventually find out through county records, but you can notify them directly to avoid confusion about who’s responsible for paying taxes. Keep digital and physical copies stored somewhere safe because deeds have a way of disappearing right when you need them most.

At A Team Real Estate Solutions, we buy houses in Oak Lawn and nearby areas via quitclaim deed, helping homeowners sell quickly and hassle-free.

What Are The Risks of Buying a House With a Quitclaim Deed in Chicago?

Buying a house with a quitclaim deed is risky, and you need to understand exactly what you’re getting into before you accept one. The person giving you the deed isn’t promising anything about the property’s title, ownership history, or legal status.

No Title Guarantee or Protection

The seller isn’t guaranteeing they actually own the property they’re deeding to you. They’re not promising the title is clear, or that there aren’t other people with claims to the house. They’re literally just giving you whatever rights they have.

That means you could end up with a property that has co-owners you didn’t know about or where the person who deeded it to you didn’t actually have the legal right to transfer it in the first place.

You’ve got zero recourse against the seller if problems pop up later because they never promised the title was good. This is completely different from a warranty deed, where the seller is legally on the hook to defend your ownership if someone challenges it.

Potential Hidden Liens and Encumbrances

Liens don’t go away just because someone signs a quitclaim deed. If the previous owner had unpaid contractor bills, the mechanic’s lien stays on the property and becomes your problem. Tax liens stick around until they’re paid off. Judgment liens from lawsuits transfer with the property. HOA liens for unpaid dues don’t disappear.

Even worse, you might not know these liens exist until months or years after you take ownership. Then, you’ll get letters from creditors demanding payment for debts you didn’t even know about.

Some of these liens can force a sale of the property if they’re not paid, which means you could lose the house entirely. With a warranty deed transaction, the title company searches for all this stuff before closing and makes sure it’s cleared, but with a quitclaim deed, you’re flying blind.

Difficulty Getting Title Insurance

Good luck getting title insurance on a property you received through a quitclaim deed. Most title companies either won’t touch it or will charge you way more and exclude tons of potential problems from coverage.

Without title insurance, you’re personally responsible for any title defects that pop up. Defending your ownership in court costs thousands of dollars minimum. If you ever want to sell the property later, your buyer is going to have the same title insurance problems you had. This means you might be stuck with the property or forced to sell it for way less than it’s worth.

Even if you wait a year or two before applying for title insurance, companies will still investigate the quitclaim deed. They might refuse coverage based on how and why it was used.

FAQs:

Is It Legal to Sell a House With a Quitclaim Deed in Chicago, IL?

Yes. In Chicago and all over Illinois, quitclaim papers are completely legal. They are often used to settle divorce cases, move families, plan an estate, and clear up title problems. They aren’t great for standard home sales, though, because they don’t offer any guarantees about ownership or liens.

What Are the Risks of Selling a House With a Quitclaim Deed?

The biggest risk is that the seller won’t say anything about the title. The buyer might get stuck with unpaid property taxes, liens, or disagreements over who owns the land. Quitclaim papers also make it harder to get title insurance and loans, which can limit who you can sell to and lower the value of the home.

Can You Use a Quitclaim Deed if the House Has a Mortgage?

That’s right, but the debt stays. The person who signed the loan is still legally responsible for it even after the loan has been transferred. A “due-on-sale” phrase is common in mortgages. This means that the lender can ask for full payment when the property is sold.

When Does Using a Quitclaim Deed Make Sense in Chicago?

If you want to give property to someone you trust, like a spouse during a split, family members, or heirs, a quitclaim deed is the best way to do it. They can also be used to get rid of someone from a title or fix problems with the title before a normal sale.

How Much Does It Cost to File a Quitclaim Deed in Chicago?

Depending on the value of the land and any transfer tax breaks, the costs are usually between $500 and $4,000. There may be recording fees, Illinois and Chicago transfer taxes, notary fees, and legal fees that are not required. Transfers to family or a spouse may not be taxed if they are properly recorded.