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tigerfamous · Joined: 11 Jul 2009 Posts: 57 6.76 Dollars($)

what is the difference between quit claim deed and warranty deed? In what situation should quit claim deed be used? in what situation should the warranty deed be used?

Thanks.

jenkin7 · Posted: Fri Jul 17, 2009 11:30 pm Post subject:

Hi tigerfamous,

A quitclaim deed does not provide any guarantee if the grantor actually has any interest in the property. This implies that if the grantor has only half of the property in his name, you get the half through the quitclaim. If the grantor has no interest in the property and quitclaims to you, you get nothing. The quit claim deed also transfers the property in as is condition. So, if there is any lien against the property, that too is transferred along with the title. On the other hand, a warranty deed ensures that the grantor actually has an interest in the property and the title is free and clear of any liens.

robertsmith2005 · Joined: 22 May 2009 Posts: 338 -0.48 Dollars($)

There are two main types of deed: warranty and quitclaim.

A warranty deed is one in which the seller, when transferring the title to you, warrants that he owns the property free and clear of all liens

A warranty deed is used in most sales of property. The warranty deed says that the grantor is the rightful owner and has the right to transfer the title; that there are no outstanding claims on the property from lenders using it as collateral, or from other creditors, and that the property can't be claimed by someone with a better claim to the title. If any of those claims are wrong, the buyer is entitled to compensation.

A title insurance policy backs up the claims of the warranty deed, protecting the lender or buyer from disputes about ownership or liens.

A quitclaim deed typically is executed when the property isn't sold -- when the owner dies and bequeaths it to someone, or when the owner gets married and wants to add the spouse's name to the title, or when a former spouse's name is removed as part of a divorce settlement or when the property is transferred to a living trust.

A quitclaim deed is a deed that says, 'I'm not warranting what I own, but I'm transferring what I do own to you

With a quitclaim, the grantee has no legal recourse if problems with the title turn up, or if a forgotten lien holder emerges from the woodwork. There isn't a title policy. That's why it's riskier. On the other hand, a lot of quitclaims are executed when the property stays in the family, and that reduces the risk.

tigerfamous · Joined: 11 Jul 2009 Posts: 57 6.76 Dollars($)

Hi Robert,

Beautiful. So I should know when to use quit claim deed and when to use warranty deed.

Thank you very much for the clear explanation.

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