Quitclaim Deed

What is a quitclaim deed?

A quitclaim deed transfers the grantor’s interest in real property to another person. The person receiving the property (called the grantee) is accepting whatever interest the other person (the grantor) has, if any. 

Unlike other property deeds, quitclaim deeds don’t provide any guarantee that the grantor owns the real estate or that there aren’t any liens or legal claims on the property. Because of this, it’s not typically used in sales between strangers or when a buyer wants peace of mind. However, a quitclaim deed works well for transfers of ownership interest between people who already trust each other, like family members.

A quitclaim deed is a legal document and needs to include the following:

• A legal description of the property
• The name of the person giving up their property interest (grantor)
• The name of the person receiving the property interest (grantee)
• The date of the property transfer
• Both parties’ notarized signatures

Quitclaim deeds are mostly used to transfer title in non-sale situations where people want to make simple changes to property ownership. Common examples include: 

• Add a spouse to the property title after marriage
• Remove a spouse from the title after a divorce
• Transfer property into or out of a revocable living trust
• Give real property to a family member as a gift
• Clarify ownership interest when real estate is inherited by multiple family members
• Clean up a title or fix an error in a previous deed

Quitclaim deeds come with some risks. The person receiving the property doesn’t get any promises about the property owners or whether the title has legal problems. If they want more peace of mind, they should ask for a warranty deed instead. Also, keep in mind that a quitclaim deed doesn’t change any mortgage or deed of trust still attached to the property.

FAQs

What is a quitclaim deed most commonly used for?

Quitclaim deeds are most commonly used to transfer title between people who already trust each other, like family members. These situations often don’t involve traditional real estate sales, which are more likely to use warranty deeds.

Who benefits the most from a quitclaim deed?

The grantor benefits the most by being able to transfer property title quickly and without liability. The grantee also benefits from the quick process when they trust the grantor. If they don’t, they should look into warranty deeds instead.

What are the disadvantages of a quitclaim deed?

Unlike warranty deeds, there’s no guarantee the grantor has full property ownership or that the title is clear. The grantee could end up with real estate that has legal or financial issues.

How long does a quitclaim deed give you ownership?

Property ownership takes effect once the quitclaim deed is signed and recorded with the county. That ownership lasts unless a court later decides the deed is invalid.