What is a Quitclaim Deed?
A quitclaim deed transfers whatever ownership interest the grantor (seller) may have in a property to the grantee (buyer), without any warranties or guarantees about the quality of that interest. The grantor doesn't promise they actually own the property, that the title is free of liens, or that no one else has a claim. They simply say: "Whatever I have, I'm giving to you." If the grantor owns nothing, the grantee receives nothing.
This makes quitclaim deeds the weakest form of property transfer and completely inappropriate for standard purchase transactions. However, they serve important purposes in specific situations where the parties trust each other or where the goal is to clarify title rather than transfer a purchase.
When quitclaim deeds are appropriate
- Transfers between spouses: Adding or removing a spouse from title during marriage or divorce. Both parties know the ownership situation.
- Transferring to your LLC: Moving a property from personal ownership into your investment LLC (or vice versa). You're transferring to yourself.
- Family transfers: Gifting property to children or transferring between family members where no purchase is involved.
- Clearing title defects: If an ex-spouse or former co-owner has a potential claim, a quitclaim deed from them formally releases that claim.
- Trust transfers: Moving property into or out of a revocable trust.
- Boundary disputes: Neighbors can use quitclaim deeds to resolve property line disagreements.
When NOT to accept a quitclaim deed
Never accept a quitclaim deed in a standard real estate purchase. If a seller offers to convey property via quitclaim instead of a warranty deed, that's a major red flag. It means they're unwilling to guarantee they actually own the property or that the title is clean. In a normal transaction, always insist on a warranty deed and title insurance.
Some specific red flags when quitclaim deeds appear in a deal:
- A seller who bought the property via quitclaim deed may have title issues
- Multiple quitclaim deeds in the chain of title suggest informal transfers that may not have been properly handled
- A probate property conveyed via quitclaim between heirs may have unresolved claims from other heirs
Quitclaim vs warranty deed
| Feature | Quitclaim | Warranty |
|---|---|---|
| Ownership guarantee | None | Full |
| Title warranty | None | Against all defects |
| Buyer protection | None from deed itself | Can sue grantor for title defects |
| Common use | Family, LLC, title cleanup | Standard purchases |
| Title insurance available? | May be difficult to obtain | Standard |
Quitclaim deeds and investors
Investors commonly use quitclaim deeds for asset protection -- transferring properties from personal names into LLCs. This is standard practice, but be aware that transferring a property with an existing mortgage may technically trigger the due-on-sale clause (though lenders rarely enforce it for entity transfers). Also note that title insurance obtained at purchase may not cover the new entity, so check with your title company when making entity transfers.