Quitclaim Deed: When and How It Is Used

A quitclaim deed transfers whatever ownership interest the grantor (seller) currently holds in a property without any guarantee that title is clear, complete, or free of liens. Unlike a warranty deed, a quitclaim offers no recourse if the title proves defective. This makes quitclaim deeds appropriate for transfers within families, divorces, and corrections where the parties trust each other and know the title history. For a third-party buyer in an arm’s-length transaction, a quitclaim deed is a warning sign and should trigger title insurance and thorough due diligence.

How a Quitclaim Deed Differs from Warranty and Other Deeds

Real estate deeds come in three main flavors, differing in what the grantor warrants (promises) about the title:

Warranty Deed (General) The grantor promises: “I own this property free and clear, I have the right to sell it, no one else has a claim, and I will defend you against any claims that arise.” If a lien emerges or a third party sues, the grantor is on the hook. Buyers insist on warranty deeds in standard transactions.

Quitclaim Deed The grantor says only: “I convey whatever interest I have in this property.” If that interest is 100% ownership, the buyer gets 100% ownership. If that interest is zero (grantor has no stake), the buyer gets zero. If unknown, it is the buyer’s problem. The grantor makes no promises and bears no liability if the title is defective.

Limited Warranty Deed (or Statutory Warranty Deed) A middle ground: the grantor warrants only that the grantor has not impaired the title during his or her own ownership, but makes no promise about prior owners or pre-existing liens.

The distinction is stark in risk allocation. A warranty deed puts the grantor on the hook. A quitclaim puts the buyer on the hook. Limited warranty puts the grantor on the hook only for defects created after the grantor took title.

Why Use a Quitclaim Deed?

Quitclaim deeds are preferred in scenarios where:

Family transfers and gifts. A parent transferring a house to an adult child typically uses a quitclaim. The parent owns outright, so the quitclaim transfers full ownership without formality. No title insurance or escrow is needed; the parties know each other and trust the chain of title.

Additions of a spouse. When a married person wants to add a spouse to the title (for estate planning or to simplify refinancing), a quitclaim from the current owner to “John Doe and Jane Doe, as tenants by the entirety” is simple and inexpensive. The title history is known; no new buyer is involved.

Divorce settlements. A divorce decree often awards property to one spouse and requires the other to “quitclaim” his or her interest. The parties have agreed on the terms in court; the quitclaim is a mechanical transfer to implement the decree.

Clearing clouded title. If an old deed from decades past creates ambiguity about whether a former owner still has an interest, that former owner can quitclaim to the current owner, extinguishing any doubt. The quitclaim formally says, “Whatever I might have had, I no longer have it.”

Corrections and title clarifications. If a deed was recorded with errors in the grantor’s name or property description, a corrective quitclaim can be recorded to clean the file, especially if the grantor is deceased and a quitclaim is easier than a new general warranty deed.

Transfer of distressed or problem properties. In foreclosure sales or distressed transfers, the entity conducting the sale (bank, foreclosure trustee) often uses a quitclaim because the entity may not have full chain-of-title documentation or because lender liability concerns make a warranty impractical.

The Risk: Title Defects and Clouded Chains

The critical difference is what happens if the title turns out to be defective. Suppose an owner mortgaged the property, defaulted, and the property went to foreclosure. The current “owner” received a quitclaim deed from the prior owner, but the mortgage lien was never discharged. The buyer thought he owned the house outright; in fact, a lender can foreclose and take the property.

Or suppose the quitclaim grantor inherited the property from a parent, and the parent’s will was challenged by other heirs after the quitclaim was signed. The buyer now owns property that a court might order transferred to the successful heir.

With a warranty deed, the grantor is liable to defend the buyer. With a quitclaim, the buyer has no recourse. The buyer’s only protection is title insurance, but even title insurance may exclude known defects or prior claims that were already disclosed.

Quitclaim and Title Insurance

Title insurance insures against losses from defects in the recorded chain of title (liens, prior claims, forged deeds, adverse possession). It does NOT insure against defects that appear in a public search (e.g., a recorded mortgage lien that the seller disclosed). If you buy property with a quitclaim deed and later discover a lien or judgment against it, title insurance will cover you—but only if the defect was hidden and only for the amount of the insurance policy.

Lenders almost always require title insurance. A quitclaim deed to a buyer obtaining a mortgage is thus typically paired with a title search and an insurance policy protecting the lender. The buyer also buys an owner’s policy for personal protection.

However, if the title is very clouded or if the insurer knows of prior issues, they may exclude those issues from coverage. A quitclaim deed where the grantor has a clouded or partial interest is thus a red flag: insurance may be expensive or unavailable.

When NOT to Use a Quitclaim Deed

In an arm’s-length sale to a third party. If you are selling to a stranger, use a warranty deed. A buyer who insists on a quitclaim (or accepts one) is either unsophisticated or suspicious of the title. Reputable lenders will not lend on a quitclaim to a third party without exceptional circumstances (e.g., a non-mortgage purchase of a known-good property from a knowledgeable buyer).

If you are a buyer and the seller will only offer a quitclaim. This is a warning. Push for a warranty deed or at least a detailed title search and title insurance. If the seller refuses, seriously reconsider the purchase. The seller’s unwillingness to warrant suggests knowledge of a problem.

In a commercial transaction. Quitclaim deeds have no place in commercial real estate or mortgage lending. Commercial transactions expect a comprehensive title insurance commitment, a detailed title report, and a warranty deed from the seller.

When you are unsure of your own title. If you acquired the property via a quitclaim yourself and do not fully understand the chain of title or if there are known liens or claims, do not quitclaim to someone else. First clear the title, obtain a title insurance commitment, and then use a warranty deed.

Recording and Notarization

A quitclaim deed, like any deed, must be notarized (the grantor signs before a notary public) and recorded in the county where the property is located. Recording creates a public record of the transfer and establishes the new owner’s claim in the chain of title. An unrecorded quitclaim is valid between grantor and grantee but does not protect against subsequent buyers or lienholders who have no notice of the transfer.

Costs are modest—recording fees vary by county but are typically $20–100—and there is no escrow or title insurance to arrange. This speed and low cost is why quitclaim deeds are popular for informal transfers.

See also