PSI Virginia Real Estate Practice Exam

What does a quit claim deed accomplish?

1. Establishes the full ownership rights

2. Removes an heir and clears title issues

3. Transfers financial responsibilities

4. Creates joint ownership

The correct answer is: Removes an heir and clears title issues

A quit claim deed primarily serves to transfer whatever interest the grantor may have in a property to the grantee, without any guarantees or warranties regarding the extent of that interest or its legitimacy. This makes it particularly useful for clearing up title issues, as it allows one party to relinquish their rights or claims to a property. When used in the context of inheritance, for example, a quit claim deed can effectively remove an heir's claim to a property if they decide to transfer their interest back to the estate or to another party. This is why the choice indicating that it removes an heir and clears title issues is correct, as the quit claim deed helps simplify ownership matters, particularly in situations involving multiple claimants or ambiguities in property rights. The other options do not accurately reflect the primary function of a quit claim deed. Establishing full ownership rights is more appropriately associated with a warranty deed, which guarantees that the title is clear. Transferring financial responsibilities pertains to obligations like mortgage payments, which are not affected by the transfer of an interest in the property itself. Creating joint ownership must be done through specific types of deeds, such as joint tenancy deeds, and is not something a quit claim deed inherently accomplishes on its own.