What is a quitclaim deed in real estate?

When it comes to real estate transactions, understanding the different types of a quitclaim deed is crucial. One type of deed that often comes up, especially in specific situations like transferring property between family members, is the quitclaim deed. In this blog, we will explore what a quitclaim deed is and how it differs from other deeds and answer some common questions related to its use. 

What is a Quitclaim Deed in real estate?

A quitclaim deed, also known as a quick claim deed, transfers property ownership from the grantor to the grantee. Unlike other types of deeds, such as a warranty deed, a quitclaim deed does not provide any warranties or guarantees about the title. This means the grantor transfers whatever interest they have in the property without guaranteeing that the title is clear of liens or other encumbrances.

Can you sell a house with a quit claim deed, in, for example, Florida?

Yes, you can sell a house with a quitclaim deed in Florida. However, because it offers no warranties, buyers might be wary. This deed often transfers property between family members or into a living trust. For sales, a warranty deed is generally preferred as it guarantees a clear title.

Do I need an attorney for a quitclaim deed?

While it is not mandatory to have an attorney to execute a quitclaim deed, it is highly advisable. An attorney ensures the quitclaim deed is correctly prepared and legally compliant. They can also help with a title search or title insurance to protect against potential title issues.

What are the common uses of a Quitclaim Deed?

Quitclaim deeds are used when the ownership interest is clear and undisputed. Common scenarios include:

• Transferring property between family members
• Adding or removing a spouse from the property title
• Transferring property into a living trust
• Correcting errors in the property title

What are the risks involved with Quitclaim Deeds?

The primary risk of using a quitclaim deed is that it offers no guarantee of clear title. If there are any issues with the title, such as undisclosed liens or ownership claims, the grantee has no legal recourse against the grantor. This makes it essential to perform a title search or obtain title insurance when using a quitclaim deed in real estate sales.

How do you execute a Quitclaim Deed?

Executing a quitclaim deed involves several steps:

• Preparation. Accurately prepare the quitclaim deed form, including the description of the property and the names of the grantor and grantee.
• Notarization. The grantor must sign the deed in the presence of a notary public.
• Recording. Submit the notarized deed to the appropriate county office for recording. This makes the transfer official and public.

Read more: Lady bird deed

Bottom line

A quitclaim deed is a useful tool in specific real estate transactions, particularly for transferring property between family members or into a living trust. While it offers a quick and straightforward method of transferring property, it comes with risks due to the lack of guarantees about the title. Consulting with an attorney and performing a thorough title search can help mitigate these risks and ensure a smooth transfer of property ownership.

If you’re transferring or receiving property through a quitclaim deed, understanding the process and potential pitfalls is essential. For significant real estate sales, a warranty deed might be better due to its protection.

Written by Vanessa Gallanti. August 4, 2024

Enthusiast about planning, project management, construction materials and technology, and construction. A civil engineer from Los Andes University and a content writer for Kukun.