Quitclaim Deed Explained, Along with Real Case

In the world of real estate, understanding the various types of deeds is essential, especially if you’re transferring property between family members or involved in estate planning.

One commonly used, yet often misunderstood document is the Quitclaim Deed. Unlike warranty deeds, quitclaim deeds come with no promises or protections, which can make them risky for some, but ideal in the right scenarios.

Let’s break it all down about Quitclaim Deed, including how it works, when it makes sense to use one, and even explore a real-world example.

What is a Quitclaim Deed?

A quitclaim deed is a legal form used to transfer whatever interest a person (the grantor) has in a property to someone else (the grantee). But here’s the catch, it comes without any guarantee that the person actually owns the property, or that the title is clear.

In other words, the grantor is saying:

“Whatever rights I have to this property, if any, I’m handing them over to you.” 

If they don’t have any rights, the grantee gets nothing. This makes quitclaim deeds best suited for low-risk transfers, especially between people who trust each other.

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How Quitclaim Deed Works

A quitclaim deed includes:

1. Names of the grantor and grantee

2. Legal description of the property

3. Transfer date

4. Signatures (typically notarized)

5. Sometimes, an amount exchanged (if any)

It doesn’t require a title search or title insurance, and it doesn’t void any existing mortgage. While the grantor gives up ownership interest, the grantee accepts the transfer as-is, flaws, claims, or ownership disputes included.

When to Use a Quitclaim Deed 

Quitclaim deeds aren’t for real estate sales between strangers. Instead, they work well in personal and family-related property transfers. 

Here are common scenarios:

1. Transferring Property Between Family Members

- Parents gifting property to children.

- Siblings settling inheritance matters.

2. Marriage or Divorce

- Adding a spouse to a property title after marriage.

- Removing a spouse during a divorce settlement.

3. Estate Planning

- Moving property into or out of a living trust.

4. Correcting Title Errors

- Fixing typos or ownership inconsistencies on an existing title.

5. Clarifying Easements or Ownership Interests

- Helpful when multiple owners want to adjust how a title is held.

Quitclaim Deed Real Case Example

Let’s say Jane and Mark are going through a divorce. They own a house together, but as part of the settlement, Mark agrees to give up his rights to the property so Jane can stay in the home.

To make this official, Mark signs a quitclaim deed transferring his ownership interest to Jane. It doesn’t matter whether the house still has a mortgage (it does), because the deed doesn’t affect that. Jane still has to deal with the mortgage, but now she holds full ownership.

It’s fast, legally valid, and simple, but it doesn’t come with any guarantee that Mark actually had legal ownership. In this case, though, the risk is minimal because Jane already knows his interest is real.

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Quitclaim Deed vs Warranty Deed

Unlike a quitclaim deed, a warranty deed provides assurance:

1. General warranty deeds guarantee the title is clear and covers the full history of the property.

2. Special warranty deeds promise there are no issues during the grantor’s ownership period.

So, if you're buying property, don’t accept a quitclaim deed. Real estate expert Chuck Vander Stelt warns that using a quitclaim deed in a typical home sale is a huge red flag, it means the seller isn’t guaranteeing anything about the title.

Conclusion

A quitclaim deed is a handy tool for transferring property interest, especially in informal, trust-based situations like between family members or during a divorce. 

But it's not for every real estate transaction. Since it doesn’t guarantee ownership or a clear title, the grantee takes on a big risk.

If you're considering using or receiving a quitclaim deed, consult a lawyer, especially if the stakes are high or there’s any doubt about ownership.

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FAQ

What does a quitclaim deed do?

It transfers whatever ownership interest the grantor may have in a property to the grantee, without guaranteeing that the interest is valid or that the title is clear.

When should I use a quitclaim deed?

It’s best used for non-sale transfers like between family members, during divorce, for estate planning, or fixing title errors.

Can a quitclaim deed be canceled?

Yes, if both parties agree, or if it was signed under fraudulent circumstances. Legal action may be required for cancellation.

Does a quitclaim deed remove someone from a mortgage?

No. It only removes them from the ownership title, not from any loan or financial obligation tied to the property.

Is a quitclaim deed safe?

It can be, but only if the grantee trusts the grantor and understands that no title guarantee is included. Always seek legal advice first.