A “deed” transfers ownership of a property from one party to another. Warranty deeds and quitclaim deeds are the two most common kinds.
Both types of deeds contain the legal description of the property, the county in which the property is located, the name of the person transferring the deed and the name of the person accepting it.
A quitclaim deed makes no assurance that the property is free and clear of any liens or encumbrances – and provides far less protection to the recipient of the property.
A warranty deed, on the other hand, which is used in most real estate sales, warrants clear title after a title search is completed.
Quitclaim deeds are commonly used when property is transferred from one family member to another, when a spouse’s name is added to the property title, or when someone’s name is removed from the property title, such as in a divorce.
A quitclaim deed doesn’t erase or affect any existing mortgage that the owner is responsible for. Quitclaim deeds are also not reversible. Simply put, once the deed is signed and delivered, the individual transferring it no longer owns the property.