{"id":75912,"date":"2022-05-02T11:50:47","date_gmt":"2022-05-02T18:50:47","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=75912"},"modified":"2022-08-24T14:15:04","modified_gmt":"2022-08-24T21:15:04","slug":"what-is-a-quitclaim-deed","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/what-is-a-quitclaim-deed\/","title":{"rendered":"What Is a Quitclaim Deed? Everything You Need to Know"},"content":{"rendered":"

You\u2019ve been searching for houses for months and finally found the one you like. After making your way through <\/span>the homebuying process<\/span><\/a>, one of the final steps is ordering a title search and then have the seller execute the deed to the property at closing. This step legalizes the transfer of property ownership. Warranty deeds are most common in these transactions, but some home sellers might use a <\/span>quitclaim deed<\/span><\/a>. So what is a quitclaim deed?<\/span><\/p>\n

Before learning about quitclaim deeds, it\u2019s important to know what a property deed is and what they do. Whether you\u2019re a <\/span>first-time homebuyer<\/span><\/a> in <\/span>Chicago, IL,<\/span><\/a> or you\u2019re selling your home in <\/span>San Francisco, CA<\/span><\/a>, read on to learn about property deeds and when to use them.<\/span><\/p>\n

Redfin does not endorse any of the agencies, lawyers, or services mentioned. Redfin strongly recommends that consumers make informed decisions and independently verify that a service provider will meet their needs.<\/span><\/i><\/p>\n

\"people<\/p>\n

What is a real estate\/property deed?<\/span><\/h2>\n

Real estate deeds and property deeds are physical, legal <\/span>real estate documents<\/span><\/a> used in real estate transactions. They legally transfer ownership (interest) of real property from the current property owner\/seller (the grantor) to a new owner\/purchaser (the grantee). Typically prepared by a <\/span>mortgage company<\/span><\/a>, <\/span>title company<\/span><\/a>, or real estate lawyer, a deed contains a written legal description of the property and its boundaries and identifies the grantor and grantee parties.\u00a0<\/span><\/p>\n

A deed must be in writing, prepared properly, and executed by the grantor to be legal and submitted for public record. People use different types of deeds depending on the circumstances of the property transfer. When a grantee uses a title company to conduct their closing on a purchase of real property, the company runs a title report. This report ensures that the seller has good title to the property. The company can then choose to insure the grantee\u2019s title to the property. Insurance protects the grantee against certain claims or disputes that may arise relating to the ownership, physical, or financial interest in the property. An underwriter typically authorizes these insurance documents.\u00a0<\/span><\/p>\n

What does a deed do?<\/span><\/h2>\n

A deed transfers an ownership interest in a property. Deeds offer varying levels of protection for both the grantor and the grantee. Regardless of the type of deed, a grantee is most protected when they obtain title insurance. This is in case something later calls the grantor\u2019s right to transfer title into question.\u00a0<\/span><\/p>\n

Adam Leitman Bailey of <\/span>Adam Leitman Bailey, P.C.<\/span><\/a>, suggests being cautious when using a quitclaim deed. \u201cSellers may use quitclaim deeds instead of warranty deeds when they may not be familiar with the property, worry about a possible title defect, or think there isn\u2019t clean ownership of the selling property. If a seller insists on using a quitclaim deed instead of a warranty deed, the buyer should purchase title insurance and remain wary of the transaction.\u201d\u00a0\u00a0<\/span><\/p>\n

What is a quitclaim deed?<\/span><\/h2>\n

A quitclaim deed, also sometimes known as a release or non-warranty deed, is a legal document used to transfer property ownership. Quitclaim deeds may be mistakenly called \u201cquit claim\u201d or \u201cquick claim\u201d deeds. A quitclaim deed conveys a grantor\u2019s interest in transferring property without making promises or warranties, such as title ownership or financial obligation. This deed offers little protection to the grantee and is typically used when there is no or less than fair market consideration paid for the property interest.\u00a0\u00a0<\/span><\/p>\n

However, the deed\u2019s effectiveness depends on the grantor\u2019s title. If a grantor still owes a financial obligation on the property, grantees should talk to a lawyer about who would be responsible for paying it and if the property could be foreclosed on if the obligation goes unpaid. Likewise, quitclaim deeds only transfer property that the grantor owns. If a grantor does not own title to the property, the quitclaim deed conveys nothing.\u00a0<\/span><\/p>\n

A lawyer\u2019s take: pros and cons of quitclaim deeds<\/span><\/h2>\n

Advantages<\/span><\/p>\n