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Quitclaim Deed: What It Is and When To Use One

TLDR

What You Need To Know

  • You can use a quitclaim deed to transfer property ownership rights to another person
  • A quitclaim deed is normally used between people who know and trust each other
  • Quitclaim deeds don't come with guarantees and aren't typically used for traditional real estate sales

Contents

When it comes to owning property, we pretty much know the drill: find the property, get it financed with a loan, sign a general or special warranty deed and then it’s yours.

But not all property transfers happen this way. Inheritance, a special trade between two parties, is a type of property transfer that doesn’t follow the usual routine. 

Enter: the quitclaim deed. Quitclaim deeds are simple, quick transactions that come with limited protections. They’re usually used by people who know each other well, like parents, siblings and relatives. 

Curious if this type of deed is right for your situation? Here’s what you need to know before signing one. 

What Is a Quitclaim Deed?

A quitclaim deed is a legal document used to make a straightforward transfer of a property between two parties. Unlike a conventional sale and purchase, there’s usually no title search, payment or mortgage involved.

It’s kind of like wrapping a house with a beautiful red bow and handing it to someone you know. 

While a quitclaim streamlines the property transfer process, it also comes with risks. So, it’s normally used between people who know and trust each other.

What Is a Quitclaim Used For?

Here are some scenarios where a quitclaim deed might come into play:

  • Transferring property between family members: Maybe your parents are downsizing and they want you to own your childhood home. Maybe you’ve landed a fabulous job abroad and you want to give your condo to a sibling. A quitclaim deed officially transfers ownership rights without expensive and time-consuming litigation.
  • Adding a spouse to the title of a property (interspousal transfer): If you get married (congratulations!), a quitclaim deed lets you add your one-and-only to the property deed of your home. The two of you become joint owners, and the quitclaim deed replaces your original deed.
  • Removing a spouse from the title of a property: A quitclaim deed can also terminate ownership rights. For example, when a couple is dividing assets during a divorce, they can use a quitclaim deed to indicate who gets the house. One spouse gives up rights to the property, and the other becomes the sole owner.
  • Correcting minor errors: Mistakes happen, but if they occur on a property deed, you can’t just hit delete. A quitclaim deed can fix any typos or spelling errors in a name or a problem with the legal description of the property. 
  • Placing a property in trust: A quitclaim can be used to transfer ownership of a piece of property into a living trust. A living trust allows someone to transfer assets to another person before they die. This lets them avoid probate, a legal process for transferring property after death. 
  • Resolving title issues: Sometimes a property title can get muddled. There may be heirs or owners no one knew about, or someone got included on the title by mistake. To “clean up” the title, anyone who’s not supposed to be on it can let go of their ownership rights using a quitclaim deed.

Can you quitclaim deed a house with a mortgage?


A quitclaim deed only affects the title of a property. If you have a mortgage, you’re still responsible for paying it back even if you gave up ownership.

During a divorce settlement, couples can use a quitclaim deed to remove one spouse’s name from the property deed. However, the mortgage must be handled separately with the lender. Anyone whose name stays on the loan remains responsible for mortgage payments.

How Quitclaim Deeds Work

A quitclaim deed involves two parties. The parties can be people, corporations or entities. The party that’s transferring their ownership interest is the “grantor.” The party that’s receiving the ownership interest is the “grantee.”

Grantors typically use a quitclaim deed to give up all or some of their ownership rights to a home or piece of land. Essentially, they “quit” their claim on the property. 

But, spoiler alert, the quitclaim deed may not grant you ownership. There are quitclaim deed loopholes. 

Quitclaim deeds don’t include a title search or title insurance that confirms the grantor has rights to the property in the first place.

Let’s say you had an interest in Drake’s mansion. You could give your little brother all your interest in Drake’s mansion using a quitclaim, but your sibling wouldn’t become the owner of Drake’s luxury estate. 

Since there are no warranties regarding ownership, you should only enter a quitclaim deed with someone you know. 

Quitclaims aren’t a good approach for a traditional real estate sale where a buyer is dropping a large amount of money on an unfamiliar home. But, when it comes to property from your parents, siblings or other members of la familia, it’s pretty straightforward. The theory is that the risk is lower if you know both the grantor and the property pretty well. 

What’s the Difference Between a Quitclaim Deed and a Warranty Deed?

Promises, promises, promises. Calvin Harris, Sam Smith and Christopher Willams make a lot of them, but quitclaim deeds don’t.

Unlike quitclaim deeds, with a warranty deed, you’re assured that:

  • The grantor really owns the property and has the right to sell it.
  • There are no claims on the property (think: all property taxes have been paid and there are no liens).

Types of warranty deeds

There are two types of warranty deeds: general warranty deeds and special warranty deeds. The difference between the two is the buyer’s level of protection:

  • General warranty deed: This deed offers the most protection. The grantor promises no one has a claim on the property, including from before they took ownership. A general warranty deed gives lenders confidence to approve a mortgage. 
  • Special warranty deed: This deed offers limited protection. The grantor promises that claims haven’t been made during the time they owned the property. Any problems that existed before they took over the title become the responsibility of the new owner.

What a Quitclaim Deed Form Is

If you’re confident a quitclaim deed is the right option for you, the next step is to complete the quitclaim deed form. This is a legal document that outlines the details of the property transfer, including what’s being transferred and the names of all involved parties. A quitclaim deed isn’t legally valid until certain steps are completed. 

What Information Does a Quitclaim Deed Contain?

Individual counties may have specific requirements, but generally, you must include:

  • The name of the person transferring their ownership interest (aka the grantor)
  • The name of the person receiving the ownership interest (aka the grantee)
  • A legal description of the property (which may include a parcel number and the county where the property is located) 
  • Consideration (the amount paid for the property, even if it’s only $1)
  • The name of the person who prepared the document 
  • The signature of the grantor (and in some states, the grantee)
  • Witness signatures
  • Notarization

Once the quitclaim is signed, file it with your county clerk or local authority responsible for land so it’s on the public record. Most states require this step before the deed is considered valid.

Get a Quitclaim Deed Done Right

You can find just about everything on the internet, including a template for a quitclaim deed. You can fill in the form or draft one based on a template, but it’s always good practice to chat with a lawyer first.

An attorney can flag any missing information and point out details related to your specific situation. At the very least, check with your county clerk for their quitclaim deed filing requirements.

Facts About Quitclaim Deeds To Consider

While quitclaim deeds are a fast way to move property between two parties, they require a high degree of trust. Unlike special or general warranty deeds, there’s no guarantee that the title of the property is clear. 

Before putting pen to paper, make sure you’re comfortable with the level of risk you’re assuming and seek legal advice if needed.  

Remember: Quitclaim deeds are not mortgages. Even if your name is removed from a property deed, you still must repay your mortgage loan.

To Deed or Not To Deed 

There’s a deed for everything – you just have to choose the one that’s right for your situation. Do you need a quitclaim deed for a simple property transfer or a warranty deed to help you sleep better at night?

Spend a little time understanding the type of deed you’re signing and how it works so your real estate transaction can proceed smoothly.

ICYMI

In Case You Missed It

  1. A quitclaim deed is a fast way to transfer property if you don’t need a mortgage, title search or warranty

  2. Quitclaim deeds don’t change the terms of a mortgage. Anyone listed on the mortgage for the property is still liable for the debt even if they give up ownership

  3. Check with your county clerk or local land authority before completing a quitclaim deed because there may be specific information you need to include

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