What to Do When a Quitclaim Deed Is Challenged

A quitclaim deed is a legal instrument that transfers the grantor's legal interest in a piece of real property to another person (the grantee).

It's usually a very straightforward transaction that individuals with mutual trust use to avoid time-consuming legal proceedings. Because quitclaim deeds are irrevocable (final), they are generally used in circumstances where there is little uncertainty. However, it is still possible for a quitclaim deed to be challenged.

 

If challenged in court, the issue becomes whether the property was legally transferred and if the grantor had the legal right to transfer the property. The individual challenging the quitclaim needs to prove the document was invalid and provide thorough evidence to back up their claim.

Quitclaim deed vs. warranty deed

Both warranty deeds and quitclaim deeds are valid means of transferring property ownership. Each type may be more or less appropriate in different types of property transactions.

What is a warranty deed?

A warranty deed is a legal document used to transfer real property. When a home is sold, a warranty deed is the document generally used to transfer the property. A warranty deed contains a guarantee from the seller to the buyer that the seller owns the property outright, free of encumbrances, and has the right to transfer full and clear title to the buyer.

Should there be any problems with the title relating to the matters covered by the seller’s warranty (for example, a mortgage on the property that was not paid off prior to the sale, despite a warranty that the property was “free of encumbrances”), the seller must reimburse the buyer an appropriate amount.

What is a quitclaim deed?

A quitclaim deed, in comparison, makes no promises about the grantor's having clear title. A quitclaim deed transfer only transfers the ownership rights the grantor has—which could be partial—with no guarantees. It's always best to consult a lawyer before transferring property through a quitclaim deed.

That said, quitclaim deeds (also known as quit claim deeds) are a fast and simple way to transfer property ownership rights. They're ideal for family members who know each other and the property involved, or to correct errors in an existing property title.

When to use a quitclaim deed: 4 examples

A quitclaim deed is not generally used in a traditional real estate sale. It's most commonly used when transferring property ownership rights among family members. One might create a quitclaim for the following reasons:

Example 1

In a divorce, a quitclaim deed is a way to transfer property ownership between divorcing spouses.

There are a few ways to use a quitclaim deed in a divorce. For example, say the spouses owned the marital home together. As part of the property settlement, Spouse A will take ownership of the home. Spouse B executes a quitclaim deed to transfer all of their interest in the property to Spouse A.

Conversely, spouses who want an uncontested divorce may also agree to sell the property through a quitclaim deed and divide the proceeds between them. Alternatively, they may compromise on how to divide their shared property and facilitate the split through a quitclaim deed.

Example 2

It's also common to use a quitclaim deed to add a spouse to a property after marriage. For example, Spouse A owned the home before marriage. After marriage, they add Spouse B as an owner by using a quitclaim deed, transferring ownership from themselves to themselves and their spouse.

Example 3

Family members may also use a quitclaim deed to avoid probate court by transferring an interest in real property before someone's death. In this case, the property is transferred by deed during their life, instead of being transferred by a will after the grantor's death. It's important to note that one can only use a quitclaim deed while alive.

Example 4

You can also use quitclaim deeds to correct title errors. For example, if your name is misspelled on your property title, you could execute a quitclaim deed and list your misspelled name as the grantor and your correct legal name as the grantee. Then, you can file it with the county recorder, who will update the title record.

Can a quitclaim deed be contested?

Quitclaim deeds are irrevocable, which makes them quite difficult to undo in most states. However, it's possible to contest one. The easiest way to reverse a quitclaim is to obtain the grantor's consent and sign a new quitclaim that restores the property title to the original owner. However, if you want to challenge a quitclaim that you believe the grantee created or influenced unlawfully, you must prove your claims.

Here’s how you can go about contesting a quitclaim deed:

1. First, you'll want to hire a real estate attorney. Challenging a quitclaim deed is a delicate process that's best done with the help of an expert in local laws who knows the process.
2. Explain your case to your attorney and decide if you have enough evidence to move forward.
3. Gather your documentation and work with your attorney to dispute the case in court.

The longer a quitclaim deed exists, the harder it is to contest, so you should file your suit as soon as possible.

Quitclaim deed loopholes

There can be various quitclaim deed loopholes. A challenger could claim that the grantor didn't actually sign the deed—that it was forged—or point to unmet state requirements that would invalidate the document.

Here are some other invalidating circumstances:

• Undue influence. A quitclaim deed is only valid if both parties willingly performed the property transfer. If there is evidence that the grantor was coerced into filing the quitclaim against their will, this is grounds to revoke it.
• Mental incompetence. Similarly, you can challenge a deed if the signer lacks the mental capacity to make legal decisions. Collect medical records or testimonials to prove the victim's unstable mental state.
• Forgery. If someone else forged the signature on the document, the deed would be invalid. However, you'd likely have to prove that both the signature and notary are inauthentic.
• Oversight. If the quitclaim deed hasn’t been notarized or is missing any other vital details, then it isn’t official, and your local recorder’s office won't be able to officially file it.

What to do if your quitclaim deed is challenged

Once a quitclaim deed has been recorded in the county clerk's office, it becomes more difficult to challenge since the transfer has already occurred. The person challenging the deed has the burden of proving it was falsified or not legally executed.

Step 1: Contact an attorney

If you are facing a quitclaim deed challenge, you should talk to an attorney. An attorney can review your case and advise you based on your state's laws. For example, most states have a two-year statute of limitations for challenging a quitclaim. However, the statute of limitations can vary by state.

Step 2: Review the deed

If a court receives a case challenging a quitclaim, they'll start by examining the deed to find out if the transfer was legally correct. You want to demonstrate that the grantor rightly conveyed the deed to you. Check your state's quitclaim requirements to confirm that it's legally airtight. Keep in mind that the deed is still legal if all requirements are met, even if it hasn't been filed.

Step 3: Determine the challenge’s basis

If there's no oversight in the deed itself, the challenger will likely claim forgery, mental incapacity, or undue influence as the basis for their claim. Once you know the basis of their suit, you can consult with your attorney on how to appropriately defend your case.

Step 4: Collect evidence

Depending on the challenge's basis, gather any proof you have about the execution of the deed, including:

• People who can testify they witnessed the quitclaim executed 
• Proof of the grantor's intent, such as letters or emails
• A copy of the recorded deed from the county
• The deed that originally transferred ownership to the grantor to prove they had full title to transfer

Step 5: Defend your deed

Once you've gathered enough evidence, you can work with your attorney to dispute the case in court. The burden of proof is on the challenger. It's unlikely that the court will rule against you so long as your deed meets all of your state's requirements for a quitclaim and you can address evidence offered by the plaintiff to support their theory of invalidity (or, better yet, offer evidence to rebut the plaintiff’s claims).

Step 6: Settle (if necessary)

In a settlement, there's no need to defend your claim in a trial. Both parties agree on the case's outcome with or without the court's help. Some people settle rather than go to trial because the process is faster, and you can be sure of the outcome. If you believe you'll benefit more from settling, consult with your lawyer about drafting a settlement offer.

Step 7: Improve the deed

If there's a chance that someone will challenge your deed again in the future, it's wise to improve the deed proactively. Correct any spelling or regulatory errors in the document and ensure it was properly notarized.

FAQs

How are quitclaim deeds typically used?

Quitclaim deeds are typically used to transfer property between family members, or to adjust property ownership after a marriage or divorce. A quitclaim can also be used to correct title defects or to remove one party from a shared property title.

Is a quitclaim deed legally binding?

Yes, a quitclaim is an irrevocable legal document that's enforceable by law so long as all applicable legal requirements have been met.

How do you file a quitclaim deed?

To file a quitclaim deed, take it to your county recorder’s office, fill out any necessary paperwork, and submit it along with your deed. You may also have to pay a filing fee. Check your county recorder's office for information on their filing fee and required paperwork.

Do quitclaim deeds affect your mortgage?

No, a quitclaim deed can't affect your mortgage. If your name is on the property's mortgage, a quitclaim won't change that, and you'll still have to make payments. To transfer the mortgage to the grantee, you must discuss your options with your lender.

Brette Sember, J.D. contributed to this article.