A quitclaim deed and a warranty deed perform the same essential function, they transfer title from one party to another. However, there are fundamental differences between the two deeds. In a warranty deed, the grantor (the party transferring the property) provides guarantees and warranties to the grantee (the person receiving the property) that the grantor is transferring good, marketable title to the property. In contrast, a quitclaim deed transfers title “as is” and does not guaranty and warrant that the grantor has good, marketable title to the property.
Here are the warranties provided by warranty deeds:
Covenant of seisin – seller warrants seller is the sole owner of the property.
Covenant of the right to convey – seller warrants seller has legal right to convey the property.
Covenant against encumbrances – seller warrants that there are no undisclosed restrictions or encumbrances against the property, such as liens, judgments, or other limitations.
Covenant of quiet enjoyment – seller warrants that buyer will not be affected by a defect in title.
Covenant of general warranty – seller warrants that seller will protect buyer from any harm caused by title defects.
A quitclaim deed does not provide any of the foregoing warranties. Because a quitclaim deed offers no guarantees or warranties, it offers little to no protection to a grantee. If a property is quitclaimed that has a title defect (e.g., lien, judgment, mistake in prior deed) against it, the grantee will inherit that title defect and likely have no recourse against the grantor because the grantee is accepting title as-is with no warranties that the title is clear or even that the grantor has a right to transfer the property.
Warranty deeds are the standard deed used when selling real estate to an unrelated party. Quitclaim deeds are often used to transfer title between family members or one’s own entity (e.g., LLC, corporation, trust). In general, a quitclaim deed should not be used when transferring property to an unrelated party. If you are a grantee, a quitclaim deed should only be considered in a transaction where you know and trust the grantor.