What are the differences between Quitclaim Deed and Warranty Deeds?
Don’t ignore the top of your deed. Whether it says quitclaim or warranty deed matters. The difference is complex, but for the most part, a warranty deed is superior to a quitclaim deed. Let’s look at the meanings and the differences below.
(Disclaimer: I am an attorney, but I am not your attorney. Nothing in this site creates an attorney-client relationship. This article is for educational purposes only and should not be used as legal advice. Always consult with your own attorney as your own personal circumstances dictate the legal advice that is right for you. )
What is a deed?
A deed, for our purposes today, is a document that transfers real property. Real property is land, houses, apartments, farmland, or even condos and timeshares. In other words…it’s land that you can physically touch but can’t move. Real property is stuck in place.
A deed, unlike a car title or a boat registration, proves who owns the real property. In general, that document should be recorded with the appropriate government authority to prove who owns the real property.
Deeds, unlike car titles, are not all that special. If you hold the car title, then you hold the unique, special document that goes with the property.
On the other hand, you can make as many copies of any person’s deed at the local courthouse as you want. You can wallpaper your home in deeds, and it won’t change anything.
Real property ownership is largely public domain and can be searched online. It isn’t secret; don’t let someone scam you into providing a deed.
You can probably get it for a few dollars from your local government.
What’s in a deed?
What does a deed look like? Well, they come in lots of different forms. You can even look at the property records in your community to probably find some that were handwritten.
In general they start with a recitation of who the parties are:
- “Joe Smith quitclaims to Susan Jones”
Or
- “Bill Barnes warrants and conveys to Phoebe Fleming”
Ordinarily, your deed will also describe that consideration changed hands –that money was paid. You will usually see words like :
- “for $1.00 and other valuable consideration.”
Quitclaim deed and warranty deed legal descriptions.
Then deeds go on to describe the land that the person is giving away. Property descriptions are often called legal descriptions.
The description could be in metes and bounds, minutes, hours, feet, descriptions of old trees and stumps, or even platted parcels.
You might see:
- “go 100 feet to the old steel rod, then turn right and continue another 100 feet past the delapidated barn.”
- Or “lot 3 in the 3rd addition to the City.”
Either way, any deed must describe who is giving away the property, who is receiving it, that consideration changed hands, the description of the property, and finally, signatures.
No transfer of property is proper if it is not in writing, and most states require that all deeds be signed by the person alienating (giving away) the property.
Many state further require that the signature be either witnessed, notarized, or both. Having proof of identity is very important for a proper deed and one of the reasons why deeds are not unique. The only way to alienate the property is to first prove that you actually own it…that you are the person who actually has power over the property.
This brings me to the types of deeds. The types of deeds describe what power or powers the owner has to give away.
There are many different types of deeds. Today I am going to focus on two of the most popular forms of deeds: quitclaim deeds and warranty deeds. Let’s start with the quitclaim deed.
What is a Quitclaim deed?
A quitclaim deed (sometimes erroneously referred to as a “quick claim” deed) is a simple document that transfers what one person owns to someone else.
Take heed…what someone actually owns might be different than what is represented on the deed.
In other words, a quitclaim deed is simply a declaration by the purported owner that he is giving any interest he or she has in the underlying property to the donee.
Quitclaim deeds have little or no recourse against the grantor.
A donee of a quitclaim deed does not have any legal recourse against the donor.
For example, I could theoretically give you a quitclaim deed from me for the Taj Mahal.
My quitclaim deed could say:
- I, Micah B., Grantor, hereby quitclaim and convey all right, title, and interest to, Reader, Grantee, to the following described property:
- The Taj Mahal
- Signature.
You and I both know that I do not own the Taj Mahal. And, even if I convinced you to pay me money for the deed, you could never sue me to receive the Taj Mahal. (You might be able to get your money back, but you could never receive the Taj Mahal.)
If I had ever inherited, acquired, or earned a piece of the Taj Mahal, I would have given it to you in this transaction.
More realistically, a quitclaim deed is a deed without proof of ownership. A quitclaim deed is not generally insured by a title company. No investigation into the proper ownership has been done, and no one is checking to make sure whether there are any liens on the property.
A quitclaim deed is the simplest and quickest deed for transferring property, but it does not guarantee true ownership.
Uses for Quitclaim Deeds
For example, in divorce, a divorcing spouse may quitclaim the marital home to the other spouse. In that case, no representation or warranty is necessary, and a quitclaim deed serves only to get the divorcing spouse out of the property.
Another common place to see quitclaim deeds is in inheritance situations. If a parent leaves a home to all of his children, then the children may all own the home in joint ownership.
However, if one of the children does not wish to receive that gift, he or she may simply quitclaim his or her joint interest to the other children.
For example: If Bill, Jan, and Joe all receive their parent’s house, the deed might look a little like this:
- I, Bill Barrett quitclaim and convey to Jan Barrett and Joe Barrett the following described property for $1.00 and other sufficient consideration
- Mom and Dad’s House
- Signature
In this example, Bill isn’t concerned about transferring a proper title but simply in getting out of the ownership.
Bill is essentially saying “I am not sure what I own, if anything, but whatever I own, I am giving it to Jan and Joe.”
Bill doesn’t need a title insurance policy or proof of title, instead, he simply wants out. A quitclaim deed is sufficient for that purpose.
Further, he makes no warranties about the description of the home, the liens on the property, or even whether it is suitable for living.
However, if Bill, Joe, and Jan go to sell mom and dad’s house to a complete stranger, that stranger is going to want a warranty deed.
What is a warranty deed?
A warranty deed, like a quitclaim deed, is a deed for transferring real property that not only gives away what the person describes in the document but also guarantees that if the property is incorrect, that the receiver can sue the giver.
A warranty deed is a recourse document where the grantor guarantees to the grantee that he is making a real transfer of a real interest in real property. If you own a home, you most likely have a warranty deed (we won’t get into deeds of trust today!).
A proper warranty deed warrants (guarantees) that the grantor owns the property, has the power to alienate it, that no liens exist on the property, and that it might be suitable for a particular purpose. (https://www.britannica.com/topic/warranty/Warranty-of-title)
A quitclaim deed makes no such warranties.
A special warranty deed, on the other hand, makes only limited warranties more specifically described in the document itself.
Warranty Deeds and Probate
Generally a warranty deed is used whenever someone buys land or a property for a residence or business.
Likewise, warranty deeds are appropriate when an estate is selling a piece of property to a stranger.
That stranger wants to know that the estate has the authority to sell the property. That the property is appropriately described, that no liens or encumbrances are attached to the property, and that the seller will make it right if a problem arises.
Warranties…promises…guarantees about the state of the property.
Quitclaim Deeds vs. Warranty Deeds
In general, you want a warranty deed. They are more complete, promise that the property is owned by the grantor, and allow you to sue the grantor if any problems arise.
However, in some instances, a quitclaim is the suitable choice. They are quicker, cheaper, and simpler than a warranty deed.
Quitclaim deeds are appropriate in divorce, in joint ownership, and some other limited situations. However, if you are purchasing property from a third party and want to ensure that your property is owned by the seller, then you want a warranty deed.
For more information about joint ownership and proper language in your deeds, check this out.