Quit Claim Deeds can be used in a variety of situations, such as when selling land and homes and for transferring any fund or property. A Warranty Deed is a document that proves the title of a property.
Moreover, a Warranty Deed is different from a quitclaim deed, which means a person has a claim to the property and will not make any future claims. Quit Claim Deed and Warranty Deed may seem similar, but they are not.
Key Takeaways
- Quitclaim deeds transfer property ownership without guarantees or warranties regarding title defects.
- Warranty deeds guarantee that the grantor holds a clear title and will defend the title against future claims.
- Quitclaim deeds are common in transactions between family members, while warranty deeds are more common in standard real estate transactions.
Quit Claim Deed vs Warranty Deed
A quitclaim deed is a document that transfers the title of ownership of property from one person to another. It was founded in 1800, and it offers little buyer protection. A warranty deed is a document in real estate that transfers property ownership from a grantor to a grantee, which offers high insurance to the buyer.
A Quit Claim Deed is used as part of settling an estate by distributing ownership among heirs. Moreover, it can be called “an estate deed.”
If a full title is given to the property, it would not be considered a “Quit Claim” and would be considered a full conveyance of ownership. A Warranty Deed is a little different than other deeds. It is used to transfer property from one person to another.
It’s similar to other deeds, but it also includes an express warranty, which states that the person who signed the deed grantor warrants or guarantees that they have the right to sell the property.
Comparison Table
| Parameter of Comparison | Quit Claim Deed | Warranty Deed |
|---|---|---|
| Defenition | A quitclaim deed is a document that transfers ownership of the deed holder’s property to another party. | A warranty deed is a document that transfers ownership of real property. |
| Origin | It was founded in 1800. | It was founded in 1437 |
| Legal Liabilities. | No legal liabilities. | Legal liabilities are present. |
| Ownership | Ownership from one party to another. | Transfers ownership of real property. |
| Guarantor | No | Yes |
What is Quit Claim Deed?
A Quit Claim deed is a document that transfers ownership of the deed holder’s property to another party but does not include other details about the agreement between them.
A full title, at first glance, might be easier to read and understand than a Quit Claim Deed. Moreover, it includes information about who owns what portion of the property.
A Quit Claim Deed is not related to a “quit claim” clause in a contract. The label “quit claim” does not indicate that the agreement should be interpreted as no longer being in force or effect.
A Quit Claim Deed is used in real estate sales. When selling a piece of property, for example, for foreclosure, banks and other financial institutions provide a quitclaim deed to clear the title.
This means that anyone who purchases real estate with a quitclaim deed will be taking over ownership subject to any outstanding liens or loans on that property.
Quit Claim Deeds do not transfer land or property; instead, they transfer the rights and responsibilities attached to property after it has been acquired. The transfer of title consists of merely transferring ownership from one party to another.
Quit Claim Deeds are used to transfer only the interest of the named owner without any warranties regarding the validity of the previous owner’s title.
What is Warranty Deed?
The warranty is the document that gives whoever buys the property rights to it. It describes all of the title information about the property that was included in the original deed.
Moreover, some conditions must be met when using a warranty deed to transfer property.
Most warranty deeds can only be used if there are no unpaid mortgages, taxes, liens, attachments, or judgments against the property. The grantor must also have the legal authority to sign the deed.
This means that usually, only someone with full legal authority can transfer all of their rights to a piece of real estate.
A warranty deed is a document that transfers ownership of real property. When someone sells their home, they will sign both a deed and a warranty deed.
The first document transfers ownership or the legal title to the new owner, and the second document provides assurance or guarantee to the buyer. This assurance is the warranty.
A warranty Deed is an assurance that the seller has clear title to the property and will not later appear and demand any additional payment from the buyer based on such later-disclosed problems as unpaid taxes, unpaid or outstanding mortgages, or pending lawsuits or other claims.
Main Differences Between Quit Claim Deed and Warranty Deed
- A Quit Claim Deed is a document that transfers ownership of the deed holder’s property to another party, whereas A Warranty Deed is a document that proves the title of a property.
- Quit Claim Deed was founded in 1800, whereas Warranty Deed was founded in 1437.
- Quit Claim Deed does not have any legal liabilities, whereas Warranty Deed has legal liabilities.
- Quit Claim Deed does not have any presence of a guarantor. Warranty Deed there is a presence of a guarantor.
- Quit Claim Deed offers ownership from one party to another, whereas Warranty Deed transfers ownership of real property.
Last Updated : 13 February, 2024
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
I believe this explanation is inaccurate. Quit Claim Deeds are unnecessarily deceptive and clearly pointed out in court for their lack of guarantee on property titles.
The comparisons and distinctions outlined in the article are precise and illuminating, shedding light on the complexities of real estate transactions.
This is an excellent explanation of the difference between Quit Claim and Warranty Deeds. It is very informative, thank you.
While the article is informative, it does not delve deeply into the potential drawbacks of Quit Claim and Warranty Deeds.
I found the article’s comparative table extremely helpful in understanding the legal liabilities associated with Quit Claim and Warranty Deeds.
I must say, the historical and legal contexts provided in the article are truly fascinating.
This is an essential read for anyone dealing with real estate transactions. Kudos to the author for clearly differentiating between the two types of deeds.
The historical background and legal distinctions presented in this article are absolutely indispensable for anyone navigating the intricate landscape of property transfers.