Quit Claim vs Warranty Deed
By Jim Palmer Jr.

Quit claim deeds are commonly used when parents or relatives want to transfer title to property when no money is involved, such as in estate planning.  Even though they seem to be popular, quit claim deeds can frequently be a misused tool.  Do-it-yourselfers seem to use this method of property transfer without really understanding the risks or proper application.

In one case a family member wished to purchase a parcel of land, but found that when the selling relative had received ownership via quit claim, they had not followed county regulations for subdividing property and had participated in an illegal segregation.  The new buyer had researched title issues and had found that this parcel was flagged and could never be legally sold without an adjoining parcel going with the sale (a different owner).  Since the adjoining owner did not wish to sell, the deal was considered dead. 

A warranty deed has a lot more legal heft than a quit claim deed and is probably a better choice, especially for a buyer.  A warranty deed makes a promise to the buyer that the seller has a good title to the property and that the property is free of outstanding liens or other types of claims against the property.

A quit claim deed, on the other hand, makes no promises.  A quit claim just says, “Whatever interest I have in this property, if any, I give to you.” That does not guarantee the quality of the title.  Buyers may become liable for outstanding debts or claims against the property.

If you are a buyer, a warranty deed is more favorable to you because it provides more solid legal protection.  In a typical do-it-yourselfer property transfer, parties sometimes skip an important step out of ignorance or just to save money. That mistake is to forego a title search and purchase of title insurance.  Even though a quit claim seems like a seamless way to transfer title, it offers buyers the least amount of protection.

A quit claim deed is best used to release personal interest in a property, such as when a married spouse wishes to purchase property as “sole and separate” interest without the other spouse’s involvement.  That scenario plays out when a divorce is pending and one spouse wishes to purchase a new home before the split is finalized.

Both types of deeds require similar vital information such as legal description, proper documentation, clear language of conveyance, and signatures of all parties involved.  Both must be made in writing and must hold up in a court of law to be valid.

Past Articles

Why Market to a Bunch of Realtors?
Once in a local radio blitz by a new innovative discount brokerage, they mocked the strategy of  ...MORE...

Does the Seller Benefit from a Well Represented Buyer?
The current environment in the real estate industry can be fraught with many pitfalls and ...MORE...
 

Is Cash Really King?
It is a common practice for loaded investors to wave cash (figuratively) in the face of a seller...MORE...

No Trespassing!
Owning property in this country is one of our basic rights that we should not take for granted...MORE...

Trespassing
Brokers are often asked by property owners to prepare a Comparable Market Analysis (CMA) some of the reasons a property..MORE...

Market Analysis
Brokers are often asked by property owners to prepare a Comparable Market Analysis (CMA) some of the reasons a property..MORE... 

Aerial Photos are a Great Tool
Some time ago one of my agents brought a new listing into my office to get my opinion.  I quickly scrutinized the listing data..MORE... 

Common Sense
In a rerun of the TV classic, Leave It To Beaver, I was tickled by one of the interactions between Wally..MORE... 

Does a Buyer Have Recourse?
With most home purchases the buyer negotiates the opportunity to perform a final walk through..MORE... 

The Endowment Effect
In a real estate transaction the stakes are usually high, whether it’s economic...MORE... 

Times have Changed
A recent class action lawsuit is now settled and ratified by the court ...MORE... 

 

Your Manufactured Home
Manufactured homes have been around for many years now and may get a bad rap...MORE... 

Accurate Market Analysis 
Brokers are often asked by potential sellers to give a valuation of their property,...MORE... 

 

 

Price Reductions, on the Rise
In a recent blog by a reputable broker a statement was made that...MORE... 

 

Crops and Property Sales
In the fundamental real estate course that every licensee must pass  ...MORE... 

 

Blame the Government?
It seems fascinating that many US citizens think our POTUS is like a king  ...MORE... 

Easements, A Property Right
Property rights seem to be an ongoing hot topic since there are many people  ...MORE... 

Low Appraisal?
There are basically two processes of qualification when a buyer decides to purchase ...MORE... 

Title Hiccups
After many years in the real estate business, it still surprises me when property owners are unaw ...MORE... 

What Stays with the House?
Many times after a sale is completed or at the final walk-through by the buyer just prior to ...MORE... 

Big City Broker Syndrome
A seller recently fired a big city broker who had done a great job prepping for an upcoming ...MORE... 

The Power of MLS
For years the Multiple Listing System that is used by real estate brokers across the country ...MORE... 

Another Permit?
The recent sale of a quality manufactured home reminded me that there is a gap in understanding concerning the proper permitting that is required for installing or altering manufactured home was installed ona  city ...MORE... 

 

Seller Costs
As a real estate professional, I have often been asked to provide a Market Analysis for potential selle ...MORE... 

Buyers, Don't Fool Yourself
Recently a buyer traveled from the west side of our state to view several properties hoping to identify one ...MORE... 

Caveat Emptor
In the past, real estate buyers took more risk than in these modern times. Improved business practices now demand full disclosure ...MORE... 

Buyers, are You Prepared to Pay your Own Broker?
Recently the NAR (National Association of Realtors) agreed ...MORE... 

The Bugs are Here
Spring is here and the bugs are out! This is one part of country living that can be difficult! ...MORE... 

Adverse Possession
The other day an inquiry came across my desk concerning a fence encroachment ...MORE... 

Do I Have to Tell?
What if someone died in a home?  Is the real estate broker obligated to disclose this information? ...MORE... 
 

The Best Time to Plant a Tree
This March I attended an annual community Crab Feed in ...MORE... 

Is It Illegal to Record Audio on Ring Cameras?
We live in a world that relies more and more on artificial intelligence which includes having our actions monitored in many settings...MORE... 

More about Wire Fraud
Is wire fraud still a thing in today’s real estate environment?  According to ...MORE... 
 

Buyer Brokerage Services Agreement
Times have changed for buyers in the real estate industry ...MORE... 

Boundry Dispute? Not Yet.
One of the questions for sellers, on the mandated State disclosure statement, asks ...MORE... 

Should You Pass on the Home Inspection?
 In a recent real estate transaction a buyer was convinced by ...MORE... 

Realtor Code of Ethics - Excerpts
It is common for some water wells to experience loss of water quality over time ...MORE... 

Need to Rehab Your Well?
It is common for some water wells to experience loss of water quality over time ...MORE... 

Do You Have to Rent to a Criminal?
Those in the real estate industry who manage rentals are careful to adhere to ...MORE... 

Landlocked 
For the second time in a week I’ve come across the situation where ...MORE... 

 

Broker Compensation Conflicts
For the second time in a month Realtors® have been accused in a law...MORE... 

Over Priced?
One day I received a call from a buyer who was expressing interest in a property that...MORE... 

Contract Enforcement
When something goes awry after the close of a real estate transaction, the first person on the list ...MORE... 

Best Practices
For over 100 years Realtors® have diligently worked to conform to the best business practices of the times. Even the term, Best Practices suggests that such methods are continually evolving and improving ...MORE... 
 

Manufactured Homes
Manufactured homes have been around for many years now and may get a bad rap sometimes. Since ...MORE... 
 

Will Your Property Sell in the Winter?
Most sellers remove their house or property from the market in the win...MORE... 
 

Could Legal Verdict Change Commisions?
A jury recently handed a loss to the National Association of Realtors® in a case where the complaint...MORE... 

Benefit to Buyers
On January 1, 2024, major changes to the Law of Agency will go into effect...MORE... 
 

Agency Law Clarified
Since 1996 the State of Washington passed a new statute that defined and clarified agency law...MORE...