Quitclaim Deed: What It Is and How It Works

What is Quitclaim Deed?

A quitclaim deed is a legal document used to transfer any interest a grantor holds in a property to a grantee without providing any warranties or guarantees about the title's validity or freedom from liens. Unlike a warranty deed, a quitclaim deed conveys the property "as is," meaning the grantee assumes all risks related to ownership claims or encumbrances.

This type of deed is often used in situations such as correcting title errors or transferring property between trusted parties without a traditional sale.

Key Characteristics

Quitclaim deeds have distinct features that set them apart from other property transfer methods:

• No title guarantees: The grantor makes no assurances about the property's ownership status or outstanding liens.
• “As is” transfer: The grantee accepts the property without recourse if title issues arise; title insurance is usually unavailable.
• Simple and fast process: Ideal for quick transfers without complex documentation or lengthy procedures.
• No protection for the grantee: Unlike warranty deeds, the grantee must accept all risks associated with the property.
• Common in family transfers and corrections: Frequently used to add or remove owners without formal sales.

How It Works

To execute a quitclaim deed, the grantor must prepare a document stating the parties involved, legal description of the property, and the transfer date. The grantor signs the deed before a notary to validate the transfer, and then the deed is recorded with the county clerk to update public records.

Since state requirements vary, it’s important to verify local regulations. The deed transfers only whatever interest the grantor currently holds, if any, without any warranties. For complex transfers or when considering protections like an A/B trust, consulting a real estate attorney is recommended.

Examples and Use Cases

Quitclaim deeds are commonly used in non-arm's-length transfers where parties trust each other and want to avoid the expense and delay of traditional sales.

• Family property transfers: Parents may use a quitclaim deed to add a child to a home's title.
• Divorce settlements: One spouse may quitclaim their interest to the other to settle property disputes, as seen in cases similar to those involving companies like Delta.
• Correcting title errors: Fixing misspelled names or unclear ownership without warranties.
• Transferring property into trusts: Owners might transfer property to an A/B trust to avoid probate and clarify estate planning.

Important Considerations

You should understand that a quitclaim deed offers no protection against undisclosed liens or ownership claims, so it’s risky for buyers in traditional sales. Lenders usually require warranty deeds and may not accept quitclaim deeds without additional safeguards.

Also, transferring mortgaged property via quitclaim deed does not eliminate the original borrower's obligations, and may trigger clauses requiring immediate repayment. For transactions involving investments, consider tools like best online brokers or best low-cost index funds for managing your financial portfolio alongside property assets.