Types

• A quitclaim deed, often referred to incorrectly as a “quick claim” deed, is just one type of deed. Two other common deeds are general warranty deeds and special warranty deeds. A quitclaim deed is used to transfer whatever interest or ownership (sole or shared) an individual grantor has in a property to a grantee.
  
  

Special Warranty Deeds

• Warranty deeds provide differing degrees of protection or guarantees for the grantee. A special warranty deed offers limited protection through a guarantee by the grantor that the property has not already been transferred to another person and that the property is not otherwise encumbered in any way, such as with mortgages or liens. Potential issues such as this are not covered by a quitclaim deed.
  
  

General Warranty Deeds

• A general warranty provides the most protection by providing for six covenants or guarantees that the grantor actually has the right to convey the property and that no third parties have a legal claim to the title. The warranty also guarantees the property comes without mortgages or liens and that the grantor will support the grantee’s rights should a third party claim legal rights to the property and do whatever is necessary to correct any imperfections in the grantee’s title. None of these guarantees are included with a quitclaim deed.
  
  

Limitations

• Quitclaim problems between involved parties can arise due to the limitations of a quitclaim deed. The most important limitation with this type of deed is the lack of any protection for the grantee through some kind of warranty, as with the special and general warranty deeds. It only serves to transfer the property rights of the individual grantor without any guarantee that there are no other interested parties with rights to the particular property. Without their signatures on the deed, the other individuals with an interest in the property are unaffected by the quitclaim deed and will retain their ownership. A quitclaim deed leaves the grantee with no recourse against the grantor should any future problems arise either with the title or the property itself.
  
  

Benefits

• A quitclaim deed offers a simple way to convey property interest under the appropriate circumstances. Quitclaims are often used when property is being transferred from one family member to another, such as when parents wish to transfer title of their house to a child. In divorce proceedings quitclaim deeds are commonly used when one spouse will be obtaining sole ownership of the house or other piece of property.
  
  

Considerations

• Quitclaim problems can also arise when some people try to use a quitclaim deed to avoid paying the mortgage or to get rid of a lien on the property. A quitclaim deed only transfers whatever interest (ownership) you may have in the property to someone else, it does not cancel any financial obligations you still have on the property. Nor will a quitclaim deed provide solutions to estate planning tax issues. Estate planning issues are better addressed through a properly drafted will.