- A quitclaim deed is a legal document that transfers any ownership interest one party may have in a property to another person without making any guarantees regarding the nature of the ownership.
- The person transferring their interest does not promise that they are a true legal owner or that the property is free from other ownership claims. The quitclaim deed simply transfers any interest they may have to the other party.
- Because of the lack of title guarantees, quitclaim deeds are most often used to transfer property between two parties who know and trust each other, such as family members.
Whether you’re buying a home, selling a house, or estate planning, you’ll need a deed — a legal document that transfers ownership of real estate from one party to another.
There are different types of deeds, and knowing how deeds work can help you navigate property transfers smoothly.
Quitclaim deeds can be useful in certain situations. However, they come with risks and limitations, which is why it’s so important to understand when and how they’re used.
In this article, we’ll examine the details of quitclaim deeds, explaining what they are, how they work, and when they might be appropriate for you.
What Is a Quitclaim Deed?
A quitclaim deed is a legal document that transfers a property owner’s interest in real estate to another person without offering any warranties or guarantees about the title’s validity. This means the person transferring the property (the “grantor”) is simply giving up whatever rights they may have in the property to the “grantee.” The grantor is not making any promises about whether they actually own the property or if there are any legal issues tied to it.[1]
When Is a Quitclaim Deed Used?
Quitclaim deeds are typically used in low-risk transactions and non-sale situations where the parties to the deed know and trust each other. Here are a few common scenarios:
- Transferring property between family members. Parents, for example, might use a quitclaim deed to transfer property to their children.
- Divorce settlements. A spouse may use a quitclaim deed to transfer their interest in a property to the other spouse after a divorce.
- Adding a name to the title. A quitclaim deed can be used to add someone (perhaps a new spouse) to the title, giving them an ownership stake in the property.
- Estate planning. Quitclaim deeds are often used to transfer property into a trust or to clarify ownership for any beneficiaries after the death of the property owner.
- Correcting title defects. Known as "clouds on title,” minor defects like misspellings may sometimes be corrected using a quitclaim deed.
Quitclaim deeds are not used in property sales where a buyer wants assurance that the grantor is the legal owner with the right to transfer their interest.
How Does a Quitclaim Deed Work?
A quitclaim deed is a straightforward document that transfers ownership, or the interest in a property, from one person to another. Here’s how the process works:
- The grantor prepares the deed. The person transferring the property (the grantor) completes the quitclaim deed form, typically with the assistance of a real estate attorney.
- The deed is signed and notarized. The grantor signs the document. In most states, the signing must take place in front of a notary public.[2] Even if notarization is not specifically required, failing to notarize the signatures could lead to future issues of enforceability, so it is wise to have the document notarized. Some states also require the grantee’s signature.
- The deed is filed with the county recorder. The deed must be filed with the local county recorder or registrar of deeds to become public record and make the transfer official.[3]
It's important to remember that the quitclaim deed does not guarantee that the title is clear, and it does not protect the grantee against potential title issues, even after the deed is recorded.
Key Elements to Include in a Quitclaim Deed
Valid quitclaim deeds must include the following:
- The names of the grantor and grantee.
- A legal description of the property.
- A statement that the grantor is transferring any interest they may have to the grantee.
- The signature of the grantor (and, in some states, the grantee as well).
The signed quitclaim deed must then be filed with the county to make the deed official.
State-Specific Rules
While all quitclaim deeds in the U.S. follow the same general framework, some rules can vary by state. For example, some states require witnesses in addition to a notary. Pay careful attention to your state’s rules to make sure the transfer is legally valid.
Pros and Cons of Quitclaim Deeds
Quitclaim deeds offer a few benefits, including:
- A fast process. Quitclaim deeds allow for quick transfers of property, which is important when time is of the essence, particularly in resolving clouds on title (deficits) or urgent estate planning.
- Minimal paperwork. Quitclaim deeds are easy to prepare and file, requiring less paperwork than other forms of property transfer, which typically require additional documentation.
- Cost-effectiveness. Quitclaim deeds are generally less expensive than other types of deeds because they don’t require extensive title searches or title insurance.
However, there are also risks and limitations to consider, including:
- No proof of ownership. It could be possible that a grantor has no ownership interest in the property they are purportedly transferring.
- No title guarantee or protection for the new owner. The grantor makes no promises about the title’s validity, which means the grantee accepts any potential title issues. For example, there could be third-party claims or liens against the property, which the grantee would be responsible for.
- Lack of access to financing. Mortgage lenders might not approve a grantee for a home loan on a property transferred solely by quitclaim deed because they need more title protection for properties used as collateral for a secured loan.
- No release from existing financial obligations. Relinquishing interest in the property does not remove the grantor from existing financial responsibilities, such as mortgage payments or back property taxes. To be removed from the mortgage (after divorce, for example), the grantor would need the grantee to refinance the mortgage without the grantor.
Benefits of Quitclaim Deeds for Specific Situations
In certain situations, quitclaim deeds can provide unique benefits. Consider the following:
- Simple property transfers within the family. A quitclaim deed can quickly and efficiently transfer property between close relatives without the need for complex legal safeguards.
- Avoiding probate in estate planning. When used for estate planning, quitclaim deeds can transfer property ownership to heirs or family members before death, allowing the transfer to occur without going through a lengthy probate court process.
- Reducing certain grantor liabilities. If someone wants to relinquish their interest in a property (perhaps after a divorce or partnership dissolution), a quitclaim deed could keep them from being responsible for future property-related expenses like property taxes, maintenance, and homeowner’s insurance. However, a quitclaim deed does not relieve the grantor of existing financial commitments like mortgage payments or back property taxes.
- Flexibility for co-owners. In situations where there are multiple co-owners of a property, a quitclaim deed allows one co-owner to easily give up their interest to the other(s) without involving third-party buyers or going through a sales process.
Alternatives to Quitclaim Deeds
If a quitclaim deed doesn’t provide enough protection for your situation, other property transfer methods might be more appropriate.
General Warranty Deeds
A general warranty deed offers a higher level of protection for the grantee. It guarantees that the grantor holds clear title to the property. If any title issues arise, the grantee has legal recourse to recover losses. This type of deed is typically used in real estate sales, where the buyer needs assurance of a cloud-free title.
Special Warranty Deeds
A special warranty deed offers more limited protection than a general warranty deed. It guarantees that no other party had an ownership claim to the property during the time the grantor owned the property, but it does not cover any title problems that may have existed before that.
Other Property Transfer Methods
In addition to warranty deeds and quitclaim deeds, real estate can also be transferred through grant deeds, which simply guarantee that the grantor has not transferred the property to anyone else.
Another method of transfer is holding property in joint tenancy, which allows the property to pass automatically to the co-owner(s) upon the death of one owner.
Final Thoughts on Quitclaim Deeds
Quitclaim deeds offer a quick, simple way to transfer property ownership, particularly between trusted parties like family members or spouses. However, they come with risks and limitations, making them unsuitable for many property transactions where the buyer wants full protection of their purchase.
If you’re unsure which deed type is best for your situation, consulting with a real estate attorney or a local mortgage loan officer can help you make the right choice.
