A quitclaim deed, also known as a non-warranty deed, is a legal instrument or a written document used to transfer interest in a real property. It conveys that the grantor or the entity that is making the transfer is transferring its interest on a property to the grantee, the recipient of the quitclaim deed.
This indicates that any rights the grantor previously had were terminated or that they quit any rights and claim to the property to the grantee.
A quitclaim deed has no title covenant like other property deeds which means the grantor does not offer a warranty to the grantee as to the status of the property. That is, there is no guarantee that the grantor actually owns any interest in the property. There is also no guarantee that a property title is free and clear if a grantor does actually own interest.
The recipient is only entitled to whatever interests and rights that the grantor possesses at the time the transfer is made.
- What a Quitclaim Deed Entails
- A grantee/recipient is buying the least amount of protection compared to any deed which is why it is also called a non-warranty deed.
- It is best used for low-risk transactions between people who know and trust each other, such as transferring a property within the family. It is highly recommended to accept a quitclaim deed only from a trusted grantor.
- It can be used to clear or cure a defect in the title or a cloud on the title in the real estate title’s recorded history. Issues with wording, for example, can be cured with a quitclaim deed.
- It is only good when the title is good. Only then is a quitclaim deed as effective as a warranty deed.
- It can’t be used when a property has an outstanding mortgage since it only affects the name and ownership on the deed.