What Is Quitclaim Deed?
A quitclaim deed is a legal instrument used to transfer an interest in real property from one party (the grantor) to another (the grantee). Unlike other types of deeds, a quitclaim deed offers no warranties or guarantees regarding the property's title. This means the grantor simply conveys whatever interest they may have in the property, without promising that they actually own it, that the title is clear of encumbrances, or that they will defend against any future legal claim to the property. As such, quitclaim deeds are commonly used in situations where there is a high degree of trust between the parties, often within the realm of Real Estate Law.
History and Origin
The concept of "quitclaim" dates back to medieval England, rooted in common law. Initially, its purpose was to provide a straightforward method for a tenant or someone in possession of land to acquire additional rights from a superior landowner without the complex process of formally surrendering and then being re-granted possession. By the 13th century, a formal sealed document or court record became necessary for a quitclaim. A notable early instance is the Quitclaim of Canterbury in 1189, where Richard I relinquished his claims on Scotland. While the expression is now primarily used in North American law, the fundamental idea of renouncing or transferring an interest without guarantee persists. Over centuries, the legal frameworks for property transfer, including the use of deeds, evolved from ceremonies like "livery of seisin" to more standardized written documents, especially after European settlers introduced these concepts to North America.10, 11
Key Takeaways
- A quitclaim deed transfers the grantor's interest in a property to the grantee without any warranties regarding the title.
- It provides the least protection for the grantee compared to other deed types.
- Quitclaim deeds are frequently used in non-sale transfers, such as among family members or for estate planning purposes.
- The grantor makes no promises about the property's ownership or the absence of defects or claims against the title.
- These deeds are often utilized to clear up minor title issues or correct errors in property records.
Interpreting the Quitclaim Deed
When a quitclaim deed is issued, its interpretation centers on the grantor's intent to convey any existing interest they hold, without making any representations about the quality or validity of that interest. This means the grantee receives only what the grantor has, which could be a full ownership stake, a partial stake, or no stake at all. Because of this, it is crucial for the grantee to understand that they are accepting the property "as is," concerning the title. The use of a quitclaim deed implies that the grantee has either conducted their own thorough due diligence or is comfortable with the potential risk assessment associated with a potentially unclear title.
Hypothetical Example
Consider John, who owns a house, and his daughter, Sarah. John wishes to transfer the house to Sarah as a gift without involving a traditional sale. He decides to use a quitclaim deed. John, as the grantor, prepares the deed, accurately listing the real property's legal description and identifying Sarah as the grantee. He signs the deed in the presence of a notary public. Once the quitclaim deed is recorded with the county recorder's office, any interest John held in the property is transferred to Sarah. If, unbeknownst to John, there was an old, unrecorded lien against the property, that lien would become Sarah's problem, as the quitclaim deed offers no protection against such issues. The asset transfer is complete, but the responsibility for any title defects now rests solely with Sarah.
Practical Applications
Quitclaim deeds serve various practical purposes where the relationship between the parties or the nature of the transfer makes title warranties unnecessary or undesirable. One of the most common applications is the transfer of property ownership between family members, such as a parent gifting property to a child, or siblings transferring shared inherited property.8, 9 They are also frequently used in divorce settlements to remove one spouse's name from a property title, allowing the other spouse to assume full ownership. Furthermore, quitclaim deeds are instrumental in correcting minor errors on existing property titles, like a misspelled name or an incorrect legal description. They are also employed when transferring property into a trust for estate planning purposes.7 These documents must be properly executed and then filed with the appropriate local government entity, such as the county recorder or clerk, to become part of the public record.4, 5, 6 In many jurisdictions, the county recorder’s office is responsible for maintaining all official real estate records. San Diego County Assessor/Recorder/County Clerk
Limitations and Criticisms
The primary limitation of a quitclaim deed is the complete absence of warranties from the grantor. This means the grantor makes no guarantee that they actually own the property, that the title is clear, or that they will defend the grantee against future claims. T2, 3his lack of protection makes quitclaim deeds unsuitable for typical real estate transactions between unrelated parties, where the buyer expects assurance of a clear title. If the grantor has no legal interest in the property, a quitclaim deed effectively transfers nothing to the grantee. Additionally, a quitclaim deed does not impact any existing mortgage on the property; the underlying loan obligation remains with the original borrower unless specifically addressed by the lender. While generally valid, a quitclaim deed can be challenged in court if it can be proven that it was signed under duress, fraud, forgery, or if the grantor lacked mental capacity.
1## Quitclaim Deed vs. Warranty Deed
The key distinction between a quitclaim deed and a warranty deed lies in the level of protection offered to the grantee. A quitclaim deed conveys whatever interest the grantor has in the property without any guarantees, meaning the grantee accepts the property title "as is." There are no assurances that the grantor owns the property, that the title is free of defects or liens, or that the grantor will defend against any claims.
In contrast, a warranty deed, specifically a general warranty deed, provides the highest level of protection to the grantee. The grantor explicitly warrants that they hold clear title to the property, have the right to sell it, and will defend the grantee against any claims to the title, including those that arose before the grantor owned the property. This type of deed typically involves a comprehensive title search and often title insurance to back the warranties. Confusion often arises because both types of deeds transfer property, but their implications for title assurance are vastly different.
FAQs
What does it mean if a deed is "quitclaimed"?
When a property is "quitclaimed," it means that the person giving up their interest (the grantor) is transferring whatever ownership stake they have in the property to the recipient (the grantee), but without promising that they actually own the property or that the title is free of problems.
Is a quitclaim deed legally binding?
Yes, a quitclaim deed is a legally binding document that effectively transfers the grantor's interest in a property to the grantee. However, its binding nature pertains to the transfer of interest, not to any guarantees about the title's quality or validity.
When should you not use a quitclaim deed?
You should generally avoid using a quitclaim deed in a standard real estate sale where the buyer expects a clear and marketable title and wants protection against potential claims or defects. In such cases, a warranty deed or special warranty deed is more appropriate.
Does a quitclaim deed remove someone from a mortgage?
No, a quitclaim deed only transfers ownership interest in the property; it does not remove a person's obligation on a mortgage. The mortgage is a separate financial agreement between the borrower(s) and the lender. To be removed from a mortgage, the lender typically needs to approve a refinance or assumption of the loan by the remaining party.
Is a title search necessary with a quitclaim deed?
While a title search is not legally required for a quitclaim deed, it is highly advisable for the grantee to conduct one. Without a title search, the grantee has no way of knowing if the grantor truly owns the property or if there are any undisclosed liens or defects, as the quitclaim deed offers no protection against these issues.