Quitclaim deeds can be an efficient and effective way to transfer a property from one entity to another.
But that doesn’t mean it always gives you ownership.
So, let’s demystify what these documents can do and cover all the need-to-know information that will help you understand the process of obtaining ownership of a property.
1. What is a Quitclaim Deed?
A quitclaim deed refers to a legal document that can be used to transfer ownership of a property or release a person’s interest in a property.
When the document is used, a grantor sends the document to a grantee, making the transfer official.
However, the deeds include virtually no buyer protection for the grantee because the title is transferred as is.
So, if there are issues, such as liens or disputes, the party receiving the title will take them on.
The grantor’s ownership of a property is also not guaranteed in a quitclaim deed.
Instead, the document releases any rights a grantor may have had and prevents them from claiming rights on the property in the future.
Because quitclaims offer little to no protection and have fewer provisions, they are much easier to file than other types of deeds.
Typically, they are used in a non-sale situation when the grantor and grantee have a trusted relationship, such as transferring property between family members.
2. Does a Quitclaim Deed Give You Ownership?
A quitclaim deed does transfer ownership rights from one party to another.
But that doesn’t mean it will give you complete ownership of a property.
When a quitclaim deed is used, the grantor transfers all of their rights and interests to the grantee.
Those rights and interests could include full ownership, partial ownership, or no ownership (the document does nothing to confirm the grantor’s ownership status).
Verifying the ownership of the property would require you to do a title search, which should be done before finalizing the deal.
If you want to use a document that offers more buyer (or grantee) protection, a warranty deed should be used.
A warranty deed will verify the ownership status and provide additional protection; however, they are more complicated than quitclaims deeds due to the guarantees and protection they offer.
So, yes, a quitclaim deed can be used to give someone ownership of a property, but it doesn’t verify how much ownership it entails.
3. Is a Quitclaim Deed Sufficient for Transferring Ownership to a Family Member?
A quitclaim deed is an excellent option when transferring ownership to a family member, but there are a few aspects that need to be taken into consideration.
Since quitclaim deeds don’t offer guarantees or legal protection to the person receiving the title, it puts them at risk of obtaining a title riddled with problems or not obtaining full ownership of the property.
So, if you are the grantee who will be accepting a such a deed from a family member, you should still go through the process of verifying the ownership status of the property and identifying any liens or encumbrances on the title.
You should only accept using a quitclaim deed with a family member you have a high level of trust with and who is willing to verify their ownership status.
As long as you are comfortable with the transaction and the ownership and potential problems have been properly identified, a quitclaim deed is a quick and easy way to transfer property to a family member.
4. Is a Quitclaim Deed Sufficient for Obtaining Title Insurance?
In most cases, title insurance is non-transferable, which means the grantee of a quitclaim will have to obtain new title insurance when they receive ownership of a property.
However, a quitclaim deed can make obtaining insurance a bit more complicated, and in most cases, it will be impossible to do so.
Because the deed offers no verification of the property’s ownership status or issues with the title, insurance companies may be reluctant to offer title insurance.
Insurance companies prefer other types of deeds, such as warranty deeds, that provide more assurance in regard to the details of the property’s title.
Before you accept a property through a quitclaim deed, speak with an insurance company or real estate attorney to verify your insurance options.
Because title insurance may not be an option, it’s even more of a reason to verify the ownership of a title and any issues when dealing with a quitclaim deed.
5. Can a Quitclaim Deed Be Used to Sell a Property?
Quitclaim deeds can be used to sell a property, but potential buyers should be wary about accepting them when making a purchase.
As the seller, a quitclaim deed will relinquish your rights to the property and transfer all your ownership to the buyer.
As the buyer, you will gain whatever ownership the grantor has on the property and accept any clouds on the title.
Because quitclaim deeds don’t provide much legal protection or verify the details of the ownership of a property, many potential buyers will be hesitant to accept using the deeds.
For example, if someone purchases a home and gains ownership via a quitclaim deed, it’s possible that the buyer could later discover that they don’t have full ownership of the property and that there are other entities that have claims on it.
That’s not an attractive scenario.
So, if you own a property and plan to sell it to someone who isn’t a friend or family member, you should avoid using a quitclaim to reduce the amount of time it takes to find a buyer.
6. Does a Quitclaim Deed Provide the Same Level of Ownership as a Warranty Deed?
A quitclaim deed can provide the same level of ownership as a warranty deed; however, it cannot provide the same level of ownership assurance.
Both deeds can be used to transfer property ownership, but a quitclaim doesn’t verify how much ownership is being transferred or what limitations the title holds.
A warranty deed, on the other hand, usually ensures that the grantee is receiving full, verifiable ownership of a property with a title that is free of any issues.
If a buyer has a warranty deed and later discovers issues with the property’s title, they could seek legal action against the seller (a quitclaim deed does not give buyers the same abilities if title issues arise).
So, although a they can provide the same level of ownership as a warranty, the grantee should not view the two deeds as the same.
Warranty deeds offer much more protection and assurance.
They should be the preferred deed of choice unless you have a trustworthy relationship with the person transferring ownership via a quitclaim deed.
7. Can a Quitclaim Deed Override Other Claims to Ownership?
A quitclaim deed does not override other claims of ownership of a property.
The deed only transfers the interests and rights of the grantor to the grantee.
If there are mortgages, liens, and other entities with partial ownership, a quitclaim deed will not remove them from the property.
Additionally, a quitclaim deed will not be effective in settling disputes over a property.
If an agreement with other parties can’t be reached, the matter will have to be taken care of in court.
It’s important for buyers to identify any other claims to ownership before accepting a quitclaim deed to gain the rights of a property.
Working with a real estate attorney is the best way to uncover other claims and spot potential issues that could arise in the future.
It could be very costly if you fail to identify these claims before accepting the transfer.
8. What Are the Advantages?
Quitclaim deeds come with a handful of advantages.
If you’re looking for a quick and easy way to transfer ownership of a property or handle minor resolutions, they are a wonderful option.
Here are the advantages:
Simplicity
Compared to other types of deeds, quitclaim deeds are far simpler and easier to work with.
There are fewer requirements, expediting the process of transferring the ownership of a property.
Usually, the necessary documentation only requires who the grantors and grantees are, a description of the property, the intent to transfer ownership, and signatures.
Simple doesn’t always mean better.
If there is another type of deed that is more complicated but better suits your situation, then the extra steps are worth it.
Easy Internal Transfers
Quitclaim deeds are excellent tools in the case of internal transfers, such as family transfers or transfers between trusts.
When the grantee is fully aware of all the details regarding the property’s ownership and title details, and there’s no need for title insurance, such a deed may be acceptable for the transfer.
It’s just important for the grantees to do their due diligence before accepting a quitclaim deed over a warranty deed.
Versatility
Quitclaim deeds can be used in a variety of scenarios, such as ownership transfers, boundary disputes, error corrections, clearing clouded titles, and divorce settlements.
As long as the parties involved in the scenario have a high level of trust, these deeds can avoid having to jump through legal hoops and paying expensive fees.
However, everyone’s situation is different, so weigh out the pros and cons of using different deeds to achieve your goal.
Less Expensive
In general, quitclaim deeds are less expensive than other deeds because there is minimal documentation, reduced liability (owners won’t have to fix clouds on titles), and limited examination of the title.
Fewer requirements result in fewer legal fees, keeping costs as low as possible.
However, if grantees accept a quitclaim deed, it’s possible they’ll discover costly issues with the title that have to be solved.
9. What Are the Disadvantages?
Quitclaim deeds have a handful of limitations that may not make them the right choice for many property owners or potential buyers.
They should only be used when all entities involved in the transaction are fully aware of the details regarding a property.
Here are the disadvantages of a quitclaim deed:
Unverified ownership
Quitclaim deeds do not verify the ownership of the grantor.
If the grantees fail to verify the property’s ownership status, they could be unaware of other parties that have rights to the property.
Only obtaining partial ownership could result in having to settle ownership disputes with the other parties in court.
Lack of Guarantees or Warranties
Quitclaim deeds do not guarantee that a property’s title is without any defects, such as boundary disputes, liens, or encumbrances.
The grantees are at risk of taking on complicated and expensive issues, making such deeds a poor choice for buying or selling a property.
Potential buyers should be reluctant to accept a quitclaim deed when purchasing a home.
Limited Legal Protection
If title issues occur after a property has been transferred or sold with a quitclaim deed, the deed will do little to protect the grantee.
In most cases, grantees will have no legal grounds to stand on when it comes to taking the grantors to court.
Limited legal protection is a serious red flag, and it’s why quitclaim deeds should only be used by parties with a trusting relationship.
Unaccepted by Commercial Lenders and Insurance Companies
Most lenders and insurance companies will require more verification of a property’s ownership than a quitclaim deed can provide.
That can make it difficult for the new owners to finance the property or receive title insurance.
10. How Long Does It Take for a Quitclaim Deed to be Recorded and Take Effect?
Quitclaim deeds are typically recorded in the same amount of time as other deeds.
However, preparing this kind of deed is often much quicker because of its fewer requirements.
The time it takes to record a deed depends on the recording office it’s being filed at.
Once the office receives the document, it has to be verified, indexed, and given a recording number.
On average, a quitclaim deed will become effective anywhere between a few days to a few weeks after being submitted.
If you want an accurate estimate of the timeline, contact your local recording office.
11. Can a Quitclaim Deed be Contested in Court?
Quitclaim deeds can be contested in court, especially because they do not verify the ownership of a property or take into consideration other entities that also have rights.
Here are the most likely scenarios that could lead to a legal battle:
Preexisting ownership claims: If there are undisclosed ownership claims on a property, those parties can challenge a quitclaim deed, especially if they were unaware of the transfer.
Invalid documentation: Quitclaim deeds that are improperly executed or fail to meet the requirements of the local jurisdiction can be contested in court.
Fraud: If the deed was executed through misrepresentation, coercion, or other fraudulent scenarios, it could be challenged by the affected party.
Lack of capacity: If either party involved in the transfer of a property via a quitclaim deed is considered to be mentally incompetent, the deed may be considered invalid.
Final Thoughts
When it comes to transferring property, resolving minor disputes, and making corrections on a title, a quitclaim deed can be a great option for some people.
Unlike other types of deeds, quitclaim deeds have minimal requirements, making the documentation process simple and easy.
But the simplicity comes with a catch.
These deeds don’t provide guarantees or warranties, which put the grantees at risk of taking on defective titles.
However, this kind of deed is best used when all the parties have a trusting relationship with each other, such as friends and family members.
So, if you think a quitclaim deed may be the best option for you, speak with a real estate attorney to have your specific situation analyzed and to receive professional advice.
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Disclaimer: we are not lawyers, accountants or financial advisors and the information in this article is for informational purposes only. This article is based on our own research and experience and we do our best to keep it accurate and up-to-date, but it may contain errors. Please be sure to consult a legal or financial professional before making any investment decisions.
Prior to starting Gokce Capital, Erika received a Bachelor of Architecture from the University of Southern California and a graduate degree in Urban Policy from Columbia University. She worked as both an architectural designer and engineer in New York before joining the New York City Department of Housing Preservation and Development.
Erika currently lives in the New York Metropolitan area with her spouse, daughter and cat. She is originally from Chicago and still considers herself a midwesterner at heart.
Erika also loves to read, write and travel (fun fact, she has visited all 50 states and more than 30 countries!). Her new book, Land Investing Mistakes: 11 True Stories You Need To Know Before Buying Land, is now available on Amazon.
can a quick claim deed cancel a will where the property is involved. can i sell property?
I don’t believe so, but I would recommend speaking with a local real estate attorney.