Quitclaim Deed vs. Warranty Deed. What’s the Difference?

Should you have a Quitclaim Deed or Warranty Deed when it comes to your property? What is the difference? While both quitclaim deeds and warranty deeds can be used to transfer property from one person to another, there are differences, risks, and benefits to each, according to Burnett Title.

Quitclaim deeds release an owner’s personal interest in the property without guaranteeing the validity of the title or that there are no liens against it. Quitclaim deeds include less guarantees by the grantor. They are typically used when property is being transferred between family members, for example, and/or when no funds are being exchanged. The risk, of course is that the grantee accepts the property without a guarantee of clear title.

Warranty deeds include a guarantee by the grantor that the grantor has legal title to the property and that there are no claims against it. Warranty deeds are more complex and require more research, since the title must be verified. But they offer the grantee firm assurance that the property is owned free and clear, with no encumbrances against it.

Every state is different and transfer of property is different. Every grantee should consider their needs when they are taking ownership of a property.

From a Burnett Title article by Barbara Pronin

Karen Daugerdas, Coldwell Banker REALTOR ®, 847.494.1102.