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.