Do I Need a Quit Claim Deed or a Warranty Deed to Transfer a Title?

When it comes to properly transferring title in real estate transaction you may have heard of different types of deeds including quit claim, warranty deed and a special warranty deed. Depending on the nature of your real estate transaction, your attorney can advise you which deed type is appropriate.

• A quit claim deed transfers interest in a property from one person to another. There are no guarantees made about the title, and essentially all of the first owners interests, including any title defects whether known or unknown are passed along in the quit claim deed.
• A warranty deed (sometimes called a general warranty deed) transfers interest in a property from one person to another while guaranteeing there are no defects known on the title, and if there are any title insurance is in place to handle them. A title search is completed prior to the transaction being recorded at the county recorder's office where the property is located.
• A special warranty deed is becoming more common because it us usually the type of deed that a bank or owner of a foreclosed property will give to the purchaser. A special warranty deed guarantees the title only as far back as the current owner, and no further.

Here are some easy ways to figure out if you will need a quit claim deed or a warranty deed, but remember to discuss this with your attorney and also your mortgage lender if you are purchasing the property in part with a mortgage loan.

Quit Claim Deed

Quit claim deeds are often used in a divorce situation when one spouse signs over their interest in property to the other spouse. The spouse who gives the quit claim deed (and gives up their interest in the home) is called the grantor. The spouse who receives the interest in the home is called the grantee.

• A quit claim deed allows the grantee to sell the property without requiring further approval or signatures from the grantor.
• A quit claim deed DOES NOT remove the grantor from any mortgage obligation, if they are named as a borrower on the mortgage loan.
• If you are transferring property into your own trust, you may use a quit claim deed.

Warranty Deed

A warranty deed is going to be the deed of choice for most situations, and is most common type of deed used to transfer property interest in the United States. You will want to use a warranty deed when:

• The transaction is an "arm's length" sale. In other words, the seller and the buyer do not know each other and the buyer has no history with the property.
• Purchasing a home with a mortgage, as mortgage lenders will usually want to see title insurance purchased for the property.
• You want to be certain the title is clear of any faults or encumbrances that could come back to haunt you years down the road.

Warranty deeds can only be transferred by someone who is not a minor and who is mentally competent. In order to be enforceable, the seller's notarized signatures will be on the deed and it will be recorded in the county clerk's office where the property is located. A handful of states require signatures of the buyer and seller on the deed, but most need only the seller's signatures.

Get Legal Help

Even the most seemingly straightforward real estate deal can quickly become a nightmare if a title search is not properly done, or a deed is not accurately prepared according to state law. An experienced real estate attorney can advise you about which type of deed is best for your situation, and then work with you through the conclusion of the sale to ensure you have clear title to your new property.