Nebraska Quitclaim Deed Form

What Is a Nebraska Quitclaim Deed Form?

The word deed under Nebraska law includes all written documents—other than wills and short-term leases—that create or transfer ownership of real estate.¹ A Nebraska quitclaim deed form is a type of deed that transfers the signer’s rights to real estate with no promises about the transferred interest.² In other words, the new owner receives whatever ownership interest the current owner can lawfully transfer, but a quitclaim deed provides no warranty of title.

What Is Warranty of Title?

A deed that provides warranty of title guarantees the new property owner a good, clear title. Warranty of title consists of several covenants of title—or legal promises from the current owner to the new owner.³ The current owner promises a valid title with no hidden liens or other defects. The current owner agrees to defend the transferred property interest against legitimate claims of third parties and to make the new owner financially whole if a valid third-party claim arises.

Warranty of Title and Nebraska Quitclaim Deeds

A defining feature of a Nebraska quitclaim deed is that it transfers real estate with no warranty of title. It transfers whatever interest the current owner holds in the real estate on the date of the deed. At the same time, the current owner does not promise that these rights are valid or free of defects.⁴ The new owner takes the real estate essentially as is. The deed does not give the new owner any legal right to sue if an unknown title problem reduces the value of the transferred property rights.

Other Names for a Nebraska Quitclaim Deed Form

Nebraska law uses the term quitclaim deed—or just quitclaim—to describe a deed transferring real estate without warranty of title.⁵ Nebraska courts use quitclaim deed, also—sometimes written as quit claim deed.⁶ Quickclaim deed and quick claim deed are sometimes used incorrectly, but neither is an actual term found in the law.

The word quitclaim can also be a verb. For example, a deed might state that the current owner “quitclaims all right, title and interest . . . in the property, if any.”⁷

Though quitclaim deed is by far the most common term for a deed transferring real estate with no warranty, other states use a few other names:

• Release deed. The person signing a quitclaim deed releases whatever rights he or she has to the property. With that in mind, release deed serves as another name for quitclaim deed in a few states.⁸ Nebraska courts and lawyers do not commonly use release deed.
• No-warranty deed and deed without warranty. Real estate laws in a small number of states make title insurers worry about relying on quitclaim deeds when checking a property’s chain of title.⁹ Insurers are usually more willing to accept a deed titled no-warranty deed or deed without warranty. These act as quitclaim deeds.

How Do Nebraska Quitclaim Deed Forms Relate to Other Forms of Deeds?

A Nebraska quitclaim deed places all risk of problems with a property’s title—or title defects—on the new owner. Examples of title defects that might affect real estate include unpaid liens, a mortgage balance, an unclear chain of title that makes the property less marketable, or a missing legal right to reach the property physically.¹⁰

The law views a person who accepts Nebraska real estate under a quitclaim deed as having notice that there may be title defects affecting the property.¹¹ That does not mean title defects are actually present—just that the current owner makes no promises either way.

Nebraska real estate law accepts two other types of deeds designed to keep some or all risk of title defects with the current owner:

• Nebraska warranty deed. A Nebraska warranty deed form is also called a general warranty deed. It keeps all defect-related risk with the current owner. A warranty deed provides complete warranty of title.¹² The current owner is legally required to stand behind the transferred title, and the new owner has a right to be paid for breach of warranty if a defect arises.¹³
• Nebraska special warranty deed. A Nebraska special warranty deed form—occasionally called a limited warranty deed—splits the risk of title defects between the current owner and the new owner. A special warranty deed provides warranty of title, but the warranty only covers defects from events that occurred while the current owner held title.¹⁴ The new owner can seek payment for losses caused by a defect that arose while the current owner owned the property. Defects rooted earlier in the property’s history are the new owner’s responsibility.

Title Insurance and Nebraska Quitclaim Deeds

Persons who risk financial loss from unknown defects in a Nebraska property’s title can limit that risk with title insurance. A title insurance policy is a contract between an insurer and a buyer, seller, or third party who has rights to the property’s title—such as a lender.¹⁵ The insurer charges a one-time payment when issuing the policy—typically at closing. In exchange, the insurer agrees to pay the policyholder if a covered defect causes financial loss.

Further, a title insurer almost always arranges a formal inspection of land records—called a title search or title examination—before issuing a policy. A title search greatly reduces—but does not remove—the chance of an unknown title defect emerging in the future.

A quitclaim deed places all risk of title defects on the new owner (or grantee). For that reason, title insurance is sometimes a wise purchase for the new owner—especially if he or she pays a lot for the property.

Quitclaim Deeds and Other Nebraska Deeds Used in Estate Planning

Nebraska law recognizes multiple other deed forms with more specialized functions. Nebraska deeds used in estate planning include:

• Transfer-on-death deed. A Nebraska transfer-on-death deed—or TOD deed—lets a real estate owner name a beneficiary to own the property when the owner dies.¹⁶ The owner records the TOD deed during life, but the deed does not affect the owner’s rights in the property until death. TOD deeds offer the benefit of avoiding probate without affecting the owner’s right to sell, transfer, or mortgage the property. A TOD deed does not provide warranty of title to the beneficiary even if the deed says otherwise.¹⁷
• Life estate deed. A Nebraska life estate deed creates an ownership interest that lasts until the interest holder—or life tenant—dies. The life estate deed also names another person—the remainderman—who receives the property upon the life tenant’s death.¹⁸ Nebraska life estate deeds avoid probate like TOD deeds, but the life tenant’s rights in the property are limited. This is because the remainderman has a lawful future right to the property when the deed is recorded—unlike a TOD deed’s beneficiary.¹⁹
• Personal representative deed. A court-appointed personal representative of a deceased owner’s estate signs a personal representative deed.²⁰ The purpose of the deed is to formally transfer ownership from the estate to the deceased owner’s heir or devisee (if the owner left a will). Personal representative deeds are signed and recorded during the court-supervised probate process.

Common Uses of Nebraska Quitclaim Deed Forms

Nebraska quitclaim deed forms can be useful when a property owner wants to change the record owner of real estate. They are most common, though, when the deed involves little or no payment. For example, quitclaim deeds are often a good option when the owner is transferring the property to a close relative or changing the title but keeping control of the property.

Quitclaim deeds are less common when a deed transfers real estate to a buyer who paid fair market value. A warranty deed or special warranty deed is the more likely choice in that case.

A quitclaim deed might be the right tool to meet any of the following goals:

• Joint tenancy. A property owner signs a quitclaim deed to add the owner’s spouse to the property’s title. The deed creates a joint tenancy with right of survivorship, allowing the surviving spouse to have undivided ownership upon the other spouse’s death.²¹
• Deed to trust. A property owner signs a quitclaim deed to transfer real estate to a revocable living trust. The owner can keep control and use of the property as the trust’s beneficiary or trustee. The trust allows the property to bypass probate upon the owner’s death.
• Deed to business entity. A property owner signs a quitclaim deed to transfer title to a business—such as a corporation or LLC—he or she owns. ²²
• Divorce. A property owner signs a quitclaim deed to release his or her own property rights to a former spouse as part of a divorce settlement.²³
• Estate planning. A property owner signs a quitclaim deed in favor of a close family member—giving the property as part of the owner’s estate plan.²⁴

How to Create a Nebraska Quitclaim Deed

Nebraska quitclaim deeds are often short, somewhat simple documents. Even so, a quitclaim deed must meet all of Nebraska’s legal requirements for creating quitclaim deeds specifically and deeds generally. If it does not, it may result in a failed transfer or a transfer under terms not intended by the parties. Or the register of deeds may refuse to accept the deed for recording.

Nebraska Quitclaim Deed Requirements

A quitclaim deed’s vesting clause—the language stating that the current owner’s rights are being transferred to the new owner—must show that the property transfers with no warranty of title. Quitclaim deeds typically state that the person signing them quitclaims to the new owner whatever rights the signer holds in the property.²⁵ A warranty deed, though, usually states that the current owner grants and warrants the property to the new owner.

A quitclaim deed transfers to the new owner whatever rights the signer has in the property on the date of the deed.²⁶ Nebraska law assumes that a deed transfers all of the owner’s rights, but a deed can say it transfers limited rights.²⁷

Nebraska General Deed Requirements

Nebraska quitclaim deeds must meet all of Nebraska’s legal rules for deeds in general. That means a quitclaim deed’s formatting must follow Nebraska law.²⁸ A quitclaim deed must contain all the details required in a Nebraska deed—such as a legal description of the property (often attached as an exhibit).²⁹

The current owner quitclaiming a real estate interest must sign the deed, and the signature must be notarized.³⁰ A deed that transfers a co-owned property should have both owners’ signatures—unless only one owner is transferring his or her rights. A deed transferring a Nebraska homestead must include both spouses’ signatures if the owner is married.³¹

Nebraska law does not require a statement of consideration within a deed. Nebraska quitclaim deeds customarily state nominal consideration—for example, one dollar and other valuable consideration—though it is not required by law.

Selecting a Nebraska Quitclaim Deed Form

Each state has its own real estate laws controlling deeds in that state. Real estate laws often date back a century or more, and there can be major differences between states. A Nebraska quitclaim deed form must be created specifically for Nebraska law. Another state’s form may be incorrectly formatted, leave out critical information, or result in transfer terms the parties did not intend.

1. Neb. Rev. Stat. § 76-203.
2. Morello v. Land Reutilization Comm., 659 N.W.2d 310 (Neb. 2003).
3. See Neb. Rev. Stat. § 76-206.
4. Gustafson v. Gustafson, 476 N.W.2d 819 (Neb. 1991).
5. See Neb. Rev. Stat. § 76-209.
6. See, e.g., Hendrickson v. Glaser, 283 N.W.2d 41 (Neb. 1979).
7. Morello v. Land Reutilization Comm., 659 N.W.2d 310, 314 (Neb. 2003).
8. See, e.g., Whitt v. Whitt, No. 02-CA-93 (Ohio Ct. App., 2003); Henningsen v. Stromberg, 221 P.2d 438 (Mont. 1950).
9. See, e.g., Tex. Prop. Code § 5.023 (deeds include implied warranties “unless the conveyance expressly provides otherwise”).
10. See Neb. Rev. Stat. § 44-1981(20).
11. Morello v. Land Reutilization Comm., 659 N.W.2d 310 (Neb. 2003).
12. See Neb. Rev. Stat § 76-208 (referencing “covenants for title” within warranty deeds).
13. See Grand Island Hotel Corp. v. Second Island Development Co., 214 N.W.2d 253 (Neb. 1974).
14. See Morello v. Land Reutilization Comm., 659 N.W.2d 310 (Neb. 2003).
15. Neb. Rev. Stat. § 44-1981(20).
16. Neb. Rev. Stat. § 76-3405.
17. Neb. Rev. Stat. § 76-3415(d).
18. See Neb. Rev. Stat. § 76-107.
19. See Neb. Rev. Stat. § 76-108.
20. See Neb. Rev. Stat. § 30-2476(23).
21. Neb. Rev. Stat. § 76-118.
22. See, e.g., Neb. Rev. Stat. § 76-270.
23. See Neb. Rev. Stat. § 76-248.01 (noting certificate of dissolution is insufficient to confirm title).
24. Neb. Rev. Stat. § 76-902(5)(a).
25. Morello v. Land Reutilization Comm., 659 N.W.2d 310 (Neb. 2003).
26. Gustafson v. Gustafson, 476 N.W.2d 819 (Neb. 1991).
27. Neb. Rev. Stat. § 76-104.
28. See Neb. Rev. Stat. § 23-1503.01(3).
29. See, e.g., Neb. Rev. Stat. §23-1508 (identifying information for indexing); Neb. Rev. Stat. §23-1510 (requiring a document title).
30. Neb. Rev. Stat. § 76-211.
31. Neb. Rev. Stat. § 40-104.