Things you need to know about General Quitclaim and Waiver.
1. What is a Quitclaim?
A Quitclaim is a formal document where a person waives his/her claim or demand against another person arising from a dispute, contract or any other obligation. It is executed when both parties to a potential dispute agree on a settlement to avoid future litigation, which is both costly and lengthy. It may also be used to end an ongoing dispute and quickly & finally resolve it.
2. When do you need a Quitclaim?
A Quitclaim is usually needed by the parties to a dispute after reaching a settlement to settle their claims against each other. The Quitclaim may be for a consideration such as one party paying the other a sum of money.
3. Is a Quitclaim always valid?
As a general rule, the Quitclaim must be voluntarily entered into by the parties. There must have been no fraud or coercion used on any party. Otherwise, if a party was merely coerced into executing the Quitclaim, it will not have any legally binding effect and the injured party is not barred from bringing his claims against the other party.
4. How can a Quitclaim protect you?
A Quitclaim is meant to (a) bring peace between the parties; (b) settle all issues between them; and (c) prevent potentially costly and lengthy litigation. The Quitclaim has the advantage of stopping any potential dispute from becoming a full-blown litigation and settling any ongoing dispute quickly & easily.
Once the Quitclaim is executed all the parties involved can no longer bring a claim against the other, if they were unaware of such claim at the time the Quitclaim was executed.
5. What information do you need to create a Quitclaim?
To create your Quitclaim you’ll need the following minimum information:
- The type of entity making the waiver (i.e. individual or business) as well as name and details (i.e. nationality and address)
- The type of entity benefiting from the waiver (i.e. individual or business) as well as name and details (i.e. nationality and address)
- The consideration for the quitclaim (i.e. settlement amount)
- The dispute, contract or obligation which is the subject of the waiver.