Buying a home or other real estate is exciting, but it comes with a seeming blizzard of paperwork. One of the most important documents in the process is the Deed, which specifies ownership of the property. However, there are different kinds of Deeds; the most common are a Warranty Deed or a Quitclaim Deed. Here's what you need to know about the differences between the two.
Get started Start Your Quitclaim Deed Answer a few questions. We'll take care of the rest.
What's a Warranty Deed?
A Warranty Deed provides a number of guarantees from the seller to the buyer. It includes a full description of the property and asserts that the seller owns and can transfer full and clear title of the property. It also certifies that the property is free of any easements, liens, or other encumbrances on ownership.
What's a Quitclaim Deed?
Quitclaim Deeds are used when the transfer of ownership in the property does not occur as the result of a traditional sale. For instance, Quitclaim Deeds are common when real estate is conveyed through a Will or as a gift, when property is placed in a trust, or to distribute property as part of a divorce settlement. They're also common when someone wants to sell property but they're not entirely certain what the property boundaries are or whether any other claims can be made on the property. Quitclaim Deeds contain no guarantees of any kind, which means that you could buy a property, receive a Quitclaim Deed, and later find out that the person you bought it from wasn't legally able to sell you the property at all.
When it comes to a Warranty Deed vs. a Quitclaim Deed, the central difference lies in the guarantees. Under a warranty deed, if it turns out that the property is not what the seller promised or there's an uncleared lien or other block to the title, the buyer can sue the seller and recover damages. But if the property was conveyed through a Quitclaim Deed, the buyer has no remedies. For this reason, a Warranty Deed should generally be viewed as more valuable than a Quitclaim Deed, though there are some special circumstances where that is not the case.
If you're not sure which type of Deed to use, it's best to speak to a lawyer.
Get started Start Your Quitclaim Deed Answer a few questions. We'll take care of the rest.
Get started Start Your Quitclaim Deed Answer a few questions. We'll take care of the rest.
