Understanding the Basics of a Quitclaim Deed

A quitclaim deed is a fast and easy way to transfer property ownership, but it comes with some risks.

In the world of real estate, different deeds serve different purposes. One of the quickest ways to transfer property is with a quitclaim deed, which allows someone to give up their ownership interest without providing any guarantees about the title.

While quitclaim deeds are simple to prepare, they’re not right for every situation. They can be useful in specific scenarios, especially where trust exists between the parties, but they also come with limitations and risks.

If you’re involved in a property transaction and want to better understand your options, here are seven key things to know about how a quitclaim deed works.

1. Quitclaim deeds are often used for non-sale transfers

Because quitclaim deeds offer no warranties, they’re typically used in property transfers where trust already exists between the parties. Common situations include:

• Transferring property between family members
• Adding or removing a spouse from a property title
• Transferring property into or out of a living trust
• Clarifying ownership after inheritance or divorce
• Correcting an error in a previous deed

These transfers happen outside of traditional real estate sales, so they don’t require the same level of legal protection.

2. They don’t guarantee ownership or a clear title.

Unlike special warranty deeds or general warranty deeds, a quitclaim deed transfer makes no promises about the status of the title. It simply conveys whatever ownership interest in the property the grantor may have, if any. If the grantor doesn’t actually own the property (or owns only part of it), the grantee receives only what’s legally theirs to give, which could be nothing at all.

3. They’re not typically covered by title insurance.

Because quitclaim deed transfers don’t involve the same level of documentation or guarantees as other types of property transactions, title companies rarely issue policies for them. Without a title search and insurance policy, the grantee takes on all the risk of legal claims, unpaid liens, or disputes over ownership interests in the property.

4. The document itself is relatively simple.

While quitclaim deeds lack legal protections, the process of creating one is straightforward. A valid quitclaim deed typically includes:

• A legal description of the property
• The full names of the grantor and grantee
• The date of transfer
• Notarized signatures from both parties

Once the document is properly completed and recorded with the county clerk’s office, the deed is a legal instrument transferring the grantor’s interest.

5. There are several different types of deeds.

Not all deeds are created equal. Understanding the types of deeds available is key when deciding how to proceed with a property title transfer:

• General warranty deeds guarantee a clear title and protect the grantee from any future claims.
• Special warranty deeds provide protection only for the time the grantor owned the property.
• Quitclaim deeds offer no guarantees—just a transfer of whatever interest may exist.

For high-stakes real estate sales, quitclaim deeds are rarely appropriate. But for intra-family transfers or estate planning, they can be an efficient tool.

6. Quitclaim deeds can be risky, especially for the grantee.

Because quitclaim deeds don’t require a title search or offer legal assurances, they can leave the grantee exposed. Risks include:

• Undisclosed liens or debts
• Ownership disputes
• Incomplete or incorrect documentation

If a problem arises after the deed is recorded, the grantee may have limited legal recourse. That’s why it’s wise to consult a title expert before proceeding with any quitclaim deed transfers.

7. They are often difficult to get reversed.

In most cases, a quitclaim deed is final once it’s recorded. However, it may be reversed if:

• Both the grantor and grantee agree and execute a new deed
• The original deed was signed under fraud, duress, or by mistake, and a court intervenes

To avoid complications, it’s always best to fully understand the implications before signing.

A quitclaim deed can be a useful and efficient way to transfer real property, but only when the risks are understood and the situation is appropriate. It’s a powerful tool when used for property transfers among family members, estate planning, or correcting minor issues on a title. But because these deeds offer no protection, they’re not a fit for every situation.

At Certified Title Corporation, we help clients navigate all types of property transactions with confidence. If you’re considering a quitclaim deed or have questions about the best way to transfer ownership, we’re here to help you make the right call. Contact us today for expert guidance on all your title needs.

About Certified Title Corporation: Since 1994, attorney-owned Certified Title Corporation has been furnishing residential and commercial real estate stakeholders across the nation with robust title insurance, settlement, and escrow services. Renowned for its industry-leading reliability and exemplary level of service and quality, the Maryland-based company helps clients from all walks of life achieve their asset goals. To learn more, call (888)486-5511 or visit https://www.certifiedtitlecorp.com/.