What Is A Quitclaim Deed?

A quitclaim deed (pronounced quit-claim, and sometimes incorrectly called "quick claim" deeds) is a type of deed where the seller transfers any rights they may have to the property. Unlike other deed types, quitclaims make no guarantee to the status of the property, nor guarantees that the grantor (seller) own the property. Quitclaim deeds are often used at foreclosure auctions or tax deed sales. 

Features of a Quitclaim Deed: 

1. No Warranties or Guarantees: 

   • The grantor does not guarantee that they hold a clear or valid title to the property. The deed simply transfers whatever interest, if any, the grantor has in the property to the grantee. 
   • If the grantor has no interest in the property, the grantee receives nothing and has no legal recourse against the grantor. 

2. Transfer of Interest: 

   • The quitclaim deed transfers the grantor's entire interest in the property. This could be full, partial, or no ownership at all. 

3. Common Uses: 

   • Family: 

     Often used to transfer property between family members. 

   • Clearing Title Defects: 

     Used to clear up any potential title defects or "clouds" on the title. Eg: if a previous owner's name was mistakenly left on the title, a quitclaim deed could be used to remove it. 

   • Transferring Property into a Trust or LLC: 

     Commonly used to transfer property into a living trust or a limited liability company (LLC) for estate planning or business purposes. 

   • Low-Risk Transactions: 

     Suitable for situations where the grantor and grantee know each other well; there is a low risk of title issues.

4. Simplicity and Speed: 

   • Quitclaim deeds are usually simpler and faster to execute than other deed types. They require less documentation and fewer legal formalities, making them convenient for quick property transfers. 

Limitations of a Quitclaim Deed: 

1. No Protection for the Grantee: 

   • Because a quitclaim deed provides no warranties, the grantee has no legal protection... if it turns out that the grantor didn't have a valid title claim to the property, or if there are existing liens or encumbrances on the property. 

2. Risk of Title Issues: 

   • Using a quitclaim deed carries the risk that the grantee might not receive full or clear ownership of the property. This is especially problematic if the deed is used in a situation where the title is not fully known or verified. 

3. Not Ideal for Standard Real Estate Transactions: 

   • Quitclaim deeds are generally not used in typical real estate sales where a buyer is purchasing property from a seller they do not know well. A warranty deed or special warranty deed, which offers protections and guarantees, is preferred.