Quitclaim Deed

A quitclaim deed transfers the grantor’s interest in real property to another person. The person receiving the property (called the grantee) is accepting whatever interest the other person (the grantor) has, if any.

Unlike other property deeds, quitclaim deeds don’t provide any guarantee that the grantor owns the real estate or that there aren’t any liens or legal claims on the property. Because of this, it’s not typically used in sales between strangers or when a buyer wants peace of mind. However, a quitclaim deed works well for transfers of ownership interest between people who already trust each other, like family members.

How a quitclaim deed works

The grantor signs over their interest to the grantee. The deed doesn't guarantee that the grantor has valid title. It only confirms that whatever interest the grantor holds transfers to the grantee.

To be legally effective, a quitclaim deed must generally include:

• Full legal names of the grantor and grantee
• A legal description of the property, not just the street address
• A consideration clause that states whether the transfer is for value or as a gift
• The grantor's notarized signature

Once signed and notarized, the deed must go on record with the County Recorder's Office where the property sits. This establishes the grantee's ownership in the official public record.

Common uses

Quitclaim deeds work best when both parties understand the title risk and already have an established relationship. The following situations represent the most appropriate and common applications.

• Property transfers between family members. A parent who conveys a home to an adult child, or siblings dividing an inherited property, often uses a quitclaim deed because trust already exists between the parties.
• Adding or removing a spouse from the title. After marriage or divorce, a quitclaim deed updates the title as part of a property settlement.
• Property transfer into a living trust. Owners use a quitclaim deed to re-title real estate into a trust to align their assets with their estate plan and avoid probate.
• Correcting title errors. If a prior deed contains a misspelling or technical error, a quitclaim deed re-conveys the interest with corrected information.

Limitations of a quitclaim deed

A quitclaim deed doesn't eliminate existing liens, unpaid taxes, or other encumbrances. Those obligations transfer with the property. The grantee accepts the title "as is" and has no legal recourse against the grantor under the deed if defects surface later.

Because of this, quitclaim deeds are generally not appropriate for standard real estate purchases. A buyer who pays fair market value to an unknown seller should require a warranty deed.

State requirements vary. Some states impose transfer taxes, require specific language, or recognize modified forms. These modified forms may include limited warranty protections. Consulting a licensed attorney helps ensure the deed meets local requirements before recording.

Quitclaim deed vs. warranty deed

A warranty deed guarantees the title is clear and that the grantor has the right to transfer it. If a defect surfaces later, the grantor bears liability. A quitclaim deed offers no such protection. Warranty deeds are standard in arm's-length sales. Quitclaim deeds suit situations where both parties accept the title risk.

Related terms

A quitclaim deed touches several other legal concepts in property ownership and estate planning. These related terms provide useful context for understanding how a quitclaim deed fits into a broader transaction.

• Warranty deed. Provides the strongest title protections and is the standard in most real estate sales.
• Grant deed. A grant deed offers limited warranties. The grantor confirms they haven't previously sold the property and haven't created undisclosed encumbrances.
• Title. The legal concept of ownership rights in real property, distinct from the deed itself.

FAQs about quitclaim deed

Does a quitclaim deed give the grantee full legal ownership?

A quitclaim deed transfers whatever interest the grantor holds at the time of signing, which may be full ownership. However, the deed makes no guarantee that the interest is complete or free of encumbrances.

What happens to an existing mortgage when property is transferred by quitclaim deed?

The mortgage remains attached to the property. The grantee receives the property subject to the outstanding loan, and the original borrower's personal liability on the mortgage note remains unchanged.

Are there tax implications?

When no money changes hands, the transfer may trigger gift tax reporting if the property's value exceeds the annual federal gift tax exclusion. Some states also impose a transfer or documentary stamp tax at recording. The grantee takes on the grantor's cost basis, which can affect capital gains if the property sells later.