Quitclaim Deed: What It Is and How It Works

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

A quitclaim deed releases a person’s interest in a property without stating the nature of the person’s interest or rights, and with no warranties of that person’s interest or rights in the property.

A quitclaim deed neither states nor guarantees that the person relinquishing their claim to the property had valid ownership, but it does prevent that person (the grantor) from later claiming that they have an interest in the property.

Key Takeaways

• A quitclaim deed releases a person’s interest in a property without stating the nature of the person’s interest or rights, and with no warranties of that person’s interest or rights in the property.
• A quitclaim deed makes no assurance that the grantor actually has an ownership interest in a property; it merely states that if the grantor does, they release those ownership rights.
• Quitclaim deeds are typically used to transfer property in non-sale situations, such as transfers of property between family members.

What Is a Quitclaim Deed?

A quitclaim deed usually includes a legal description of the property, the name of the person who is transferring their interest, the name of the person who is receiving that interest (the grantee), the date, and both parties’ notarized signatures.

Quitclaim deeds are typically used to transfer property in non-sale situations, such as transfers of property between family members. They can be used to add a spouse to a property title after marriage, remove a spouse from a title after divorce, clarify ownership of inherited property, transfer property into (or out of) a revocable living trust, clarify an easement, or change how a property’s title is held.

A quitclaim deed makes no assurance that the grantor actually has an ownership interest in a property; it merely states that if the grantor does, they release those ownership rights. As a result, when accepting a quitclaim deed, the buyer of a property accepts the risk that the grantor of the deed may not have a valid ownership interest and/or that there may be additional ownership interests in the property. Title insurance is not issued in conjunction with a quitclaim deed.

Types of Quitclaim Deed

Deeds are usually differentiated by what they state or guarantee when the ownership is transferred from the grantor to the grantee (buyer). Unlike a quitclaim deed, a warranty deed can grant a certain level of assurances when ownership is transferred. Warranty deeds are typically used in property sales and are granted in two common forms: general warranty deeds and special warranty deeds.

A general warranty deed provides the grantee with the highest form of protection because it assures that the grantor owns the property free and clear (and that no other entity can place a claim on it). This guarantee covers the entire history of the property—even times when the grantor did not own the property. If there are any breaches in this contract, the grantor is held responsible.

A special warranty deed conveys that the grantor owns the property and that no one else has a claim to it for as long as they have owned it. Special warranty deeds are most commonly used during commercial real estate sales.

What is a quitclaim deed?

A quitclaim deed is a document in which a grantor disclaims all interest in a parcel of real property and then conveys that interest to a grantee. Unlike grantors in other types of deeds, the quitclaim grantor does not promise that their interest in the property is actually valid.

When is it appropriate to use a quitclaim deed?

Quitclaim deeds lack certain protections and promises found in other types of deed to real property. Because of this, they should only be used under certain circumstances. These include transferring real estate between close family members—for example, from a parent to a child.

How can I nullify a quitclaim deed?

The easiest way to overturn or cancel a quitclaim deed is if both parties to the transaction explicitly agree to do so. If somebody believes that a quitclaim deed was used to illegally transfer a property, it can be challenged in court.

The Bottom Line

A quitclaim deed releases a person’s interest in a property without stating the nature of the person’s interest or rights, and with no warranties of that person’s interest or rights in the property. Quitclaim deeds lack certain protections and promises found in other types of deed to real property. Because of this, they should only be used under certain circumstances.