What Is a Quitclaim Deed?

A quitclaim deed is a written contract that helps transfer the title to real estate. Essentially, a person making a quitclaim deed «quits» their interest in the real property mentioned in the document. The parties to a quitclaim deed are called the grantor (an individual who currently owns the real property) and the grantee (an individual who is about to become an owner of real property).

The document can be used for multiple purposes. It is common to use a quitclaim deed to remove the defaults in title to real estate. It is also used to transfer title to property between family members.

A quitclaim deed essentially provides a guarantee for a buyer if there is only one owner to real property, but it doesn't have the same effect if there is more than one owner. In the latter case, a general warranty of deed or a special warranty deed is more effective. Those two documents offer a higher security level, guaranteeing that a grantor is the sole real estate owner.

Quitclaim Deed vs. Warranty Deed

These two types of deeds are common in sales of real property, but they offer different buyer protection levels.

A quitclaim deed requires less information than a warranty deed and is simpler to craft. A warranty deed involves mentioning finer details such as legal insurance, absence of the property's debts, a complete description of the property, etc.

A quitclaim deed does not make any warranties about the quality of the property title. At the same time, a warranty deed, based on its name, provides certain warranties to the buyer, for example, the absence of any outstanding liens, mortgages, or other encumbrances against the property mentioned in the deed.

This way, those who want to get the most protection should opt for warranty deeds, while those who want to create a simple document with fewer details can choose quitclaim deeds. The latter is a perfect fit for a low-risk transaction where grantor and grantee are familiar with each other (for instance, family members) or no money exchange is involved.

When to Use a Quitclaim Deed

Even though a quitclaim does not provide a 100% guarantee if there is more than one real estate owner, the document can be helpful in the following situations.

Property transfers between family members

Some risks for a buyer connected with a quitclaim deed mean that it might be most beneficial for family members who want to transfer their right to the real estate between each other. It allows the grantee to trust the deed the grantor makes, which is more complicated when two unfamiliar people sign a quitclaim deed.

It is common to use siblings' quitclaim deeds when they trade real estate with each other or parents and children when they first sell the property to the latter. A quitclaim deed in such situations does not mean a property sale in its general sense.

Property transfers between divorced couple

When a couple gets divorced and has decided that one party will buy an apartment or home from another, the party selling property might use a quitclaim deed to show that they don't have interest in the real estate anymore. Sometimes, it might be required by the court in their decision.

Title error corrections

If a person makes a mistake in a quitclaim deed, for example, fails to mention a titleholder or just a spelling error, it will cost them time and money to fix a defect. In such a case, an individual might use a quitclaim to include the title's correct information.

Another error that can be fixed is mentioning the wrong person in a title. For instance, a spouse can be added or removed from a relevant title after a marriage or divorce. To use a quitclaim deed to bring any fixes to a title, the deed should be notarized.

Transferring property into a living trust

When individuals die, their relatives might spend a lot of time and money during the litigation process. But if one of the beneficiaries uses a quitclaim deed, they will already have their title mentioned in the document. This will allow to shorten the probate process or even eliminate the need to start it.

What Are the Legal Requirements for a Quitclaim Deed?

Such a document needs to meet specific legal requirements in order to be legally binding. There are three ways to make a quitclaim deed binding, a choice of which will depend on specific state laws.

• Sign it in front of a notary public (Alaska, Arizona, California, and most of the states)

• Either sign the document in front of at least two witnesses (sometimes one) or notarize it (Alabama, Kentucky, South Carolina, South Dakota, Tennessee, Virginia, West Virginia)

• Both notarize and witness the deed (Arkansas, Connecticut, Florida, Georgia, Louisiana)

After making the deed legally binding, the document is generally filed with one of the county's recognized offices where the real estate is located, most commonly, the county recorder's office. But in some states, the form should be filed with the probate court (Alabama), circuit court (Arkansas, Maryland, Virginia), or superior court (Georgia).

To make sure your quit claim deed form is written correctly, use our online document builder. It will help you get a legitimate document that can be filed with your county recorder's office straight away. However, before doing that, it is always wise to first review the form with an attorney.

How to Transfer Ownership with a Quitclaim Deed?

In order to transfer a person's interest through a quitclaim deed, some steps should be taken.

Step 1. Negotiate the price

A quitclaim deed should have a valuable consideration (or a purchase price). This is why it should be negotiated with the grantor before filing a quitclaim deed with the county recorder's office. A real estate agent is usually not needed, but addressing an attorney to ensure the transaction is filed legally is always a wise choice.

Step 2. Obtain needed information

The request should be filed with the necessary information. Usually, it includes the name of a person creating the document (grantor), the name of a person who will receive the deed after its filing (grantee), the parties' contact information, and the purchase price agreed between the grantor and the grantee. Another valuable piece of information that should be included is a legal description of real property.

Step 3. Authorize the document

Once the form is created, the grantor should validate it according to the signing requirements of the state where the property is located. It might be either notarization or signing in front of two witnesses or both options. In order to properly authorize a quitclaim deed form, both the grantor and grantee should be present at the moment of authorization.

Step 4. Record the deed at the recording office

The grantor should fill out a quit claim deed and bring the document to the respective recording office and pay a filing fee as the last stage. Once at the recorder's office, the grantor should obtain a book called "Deed Book and Page Numbers" for the property they are searching for. All the deeds that are recorded at such offices should be assigned a book and a page number. The record office then uses it to locate the deed when it needs to be retrieved.

Frequently Asked Questions

How does a quitclaim deed differ from a title?

It is essential to understand that a quitclaim deed and an ownership title are different legal documents. If the distinction is clear, it will help avoid unforeseen ownership issues.

A title aims to prove legal ownership of a property, while the purpose of a deed is to designate the transfer of the title to a new property owner.

Why is a quitclaim deed considered less secure than a warranty deed?

The risk connected with quitclaim deeds is that the grantor does not guarantee the property title's quality. It means that the grantee might receive a quitclaim deed made by a grantor with no legal interest in the property and consequently get no rights regarding the property and no rights of warranty against the grantor.

If I am sure in the title of the owner, should I choose the form for a quit claim deed?

Using a quitclaim deed involves high risks only if the property title has some defects. However, if it is good or the grantee has reasons to think so, a quitclaim deed can convey title as effectively as a warranty deed.

What title defects can I fix with a quitclaim deed?

Technically, a quitclaim deed can be successfully used to cure any defect in a property title's recorded history. Most commonly, it is used to change the wording if it does not comply with state requirements, add a signature of a spouse, correct the misspellings of the name of the grantor, etc.