A quitclaim, in the context of real estate, is defined as a formal renunciation of a right to land. A quitclaim deed is a legal document used to transfer title “as is” from the owner of the property (the “grantor”) to another (the “grantee”).
A quitclaim deed transfers title “as is” and does not provide guarantees or warranties that the grantor is transferring good, marketable title to the property. Therefore, a quitclaim deed offers little to no protection to a grantee. If a property is quitclaimed that has a title defect against it, the grantee will 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 sell the property.
A grantee should only accept a quitclaim deed from a party the grantee trusts, such as a family member.
The Three most common uses of quitclaim deeds are:
- Transferring property to family members.
- Transferring property to a grantor’s entity, such as an LLC, Corporation, or Trust.
- Adding or removing someone from title.