What is a Quitclaim Deed?
In real estate transactions, you may encounter various legal documents. One of them is called a quitclaim deed. This deed is a legal document used to transfer ownership or interest in real estate from one person (the grantor) to another (the grantee). Unlike warranty deeds, quitclaim deeds are often used in informal or non-sale scenarios and do not assure the title’s validity. The term “quitclaim” reflects that the grantor relinquishes (“quits”) any interest they may have in the property, transferring whatever interest exists—if any—to the grantee.
While a quitclaim deed can expedite property transfers, it comes with significant risk. The grantee accepts the property “as is,” assuming any existing title defects or liens.
A quitclaim deed typically includes the following:
- A legal description of the property
- The grantor’s name
- Both parties’ notarized signatures
- The grantee’s name
The deed is recorded with the local county clerk’s office to be legally effective.
When is a Quitclaim Deed Used?
Quitclaim deeds are commonly used in specific, trust-based situations, such as Transfers between family members, such as gifting property to a relative, transferring ownership as part of a divorce settlement, or adding a spouse to the title after marriage.
- Correcting title discrepancies. These may include fixing misspellings, clearing up title issues, or addressing other minor errors in documentation.
- Estate planning. Quitclaim deeds sometimes transfer property into a trust or simplify the transfer process for heirs.
Because quitclaim deeds provide no guarantees regarding the title, they are best suited for situations where the parties have an established relationship and mutual trust.
Understanding the Risks Involved
The key distinction of a quitclaim deed is its lack of warranties. The grantee assumes all risks, including potential liens, ownership disputes, or other title defects. Compared to a warranty deed—where the grantor guarantees clear title and protects the grantee against potential title issues—a quitclaim deed offers no such protections.
For this reason, quitclaim deeds are rarely suitable for formal transactions or situations involving buyers unfamiliar with the grantor. Warranty deeds or similar instruments are often better options when title security is a priority, though they require a more formal and time-intensive process.
Get Informed, Accurate Legal Guidance
Using a quitclaim deed depends on the specific circumstances of the transaction. While these deeds are quick and straightforward, they carry significant risks that must be carefully evaluated. At Brown Dunning Walker Fein Drusch PC, we provide informed legal guidance tailored to your needs. With over 30 years of experience representing banks, financial institutions, and businesses, our Colorado real estate attorneys are equipped to handle even the most complex transactions.
Contact us today to assess whether a quitclaim deed is the right solution for your real estate matter. Call (303) 329-3363 to schedule a consultation.