Glossary term
Quitclaim Deed
A quitclaim deed transfers whatever ownership interest the grantor has in real property without guaranteeing that the title is valid or clear.
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What Is a Quitclaim Deed?
A quitclaim deed transfers whatever ownership interest the grantor has in real property without promising that the title is valid, clear, or even that the grantor owns the property. It is a deed with little or no warranty protection for the person receiving the interest.
Quitclaim deeds are often used between family members, after divorce, to move property into or out of a trust, or to clear up title issues. They can be useful, but they are not a substitute for title review.
Key Takeaways
- A quitclaim deed transfers the grantor's current interest, if any.
- It generally does not guarantee clear title.
- The deed can change ownership records without removing mortgage debt.
- Title insurance, lender consent, taxes, and state recording rules should be reviewed.
What the Deed Does and Does Not Do
A quitclaim deed can transfer a person's ownership interest in real estate. If the grantor owns a valid interest, that interest may pass to the grantee. If the grantor owns nothing, the grantee may receive nothing.
The deed usually does not promise that there are no liens, ownership disputes, boundary issues, unpaid taxes, or competing claims. That is why quitclaim deeds are riskier for arms-length purchases than warranty deeds.
Deed Type | Typical Protection |
|---|---|
Quitclaim deed | Transfers whatever interest exists, with no title warranty. |
Special warranty deed | Provides limited warranties for the grantor's period of ownership. |
General warranty deed | Provides broader warranties about title. |
Trust deed or transfer deed | May be used for estate or trust planning depending on state law. |
Mortgage and Tax Issues
Changing title is not the same as changing the mortgage. A person can sign away ownership but remain liable on a loan if the lender has not released them. Some mortgage documents also contain due-on-sale or transfer restrictions.
Transfers can also affect property taxes, transfer taxes, homestead exemptions, reassessment rules, Medicaid planning, gift tax, and estate planning. State and local rules matter.
The Bottom Line
A quitclaim deed can transfer real estate interests quickly, but it offers little title protection. It should be used with a clear understanding of title, mortgage, tax, and estate-planning consequences.