A quitclaim bill of sale transfers property without making guarantees about the property's having clear title. Get information about the pros and cons of quitclaim bills of sale.
Get your quitclaim bill of sale
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by Brette Sember, J.D.
Brette is a former attorney and has been a writer and editor for more than 25 years. She is the author of more than 4...
Updated on: November 30, 2023 · 3 min read
A quitclaim bill of sale is like a detailed receipt for the sale of an item. It states the buyer and seller, item, and price. However, a quitclaim bill of sale makes no promises about the type of title the seller holds to the property. The seller transfers only the ownership rights they have to the buyer, and the buyer accepts the item understanding that no guarantees are being made about the title. There are pros and cons to using a quitclaim bill of sale.
It's helpful to understand the different types of documents used in transferring property. A quitclaim bill of sale, for example, is not interchangeable with a quitclaim deed:
There also are different types of bills of sale:
A quitclaim bill of sale should include:
Using a quitclaim bill of sale can have benefits for both seller and buyer. A seller is able to sell the property without having to ensure the title is clear. They sell it without guarantees, so if, for example, there is a lien against the property, that lien passes with the property to the buyer.
A quitclaim bill of sale can be beneficial for a buyer as well, because the property is priced lower to reflect the fact that there are no warranties being given, so it can present a good deal.
A quitclaim bill of sale also presents some downsides. Because the bill of sale makes no guarantees at all, a buyer may find themselves owning property that is tied up with liens, or even property the seller didn't actually own at all. As a buyer, it is important to do your research and make careful decisions when it comes to accepting a quitclaim bill of sale.
The downside for the seller is that a quitclaim bill of sale will reduce the sale price significantly.
You can create a quitclaim bill of sale on your own by looking at what your state's requirements are. You also can use an online service provider who can help you create one.
A quitclaim bill of sale is a useful way to transfer property from seller to buyer when there are no guarantees being made about the seller's ownership rights to the item.
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