Hi! My name is Greg George. I’m an attorney with Macomber Law. This video addresses the question, “What is the difference between a Warranty Deed and a Quitclaim Deed?”
What is the difference between a warranty and a quitclaim deed? Let’s start with the definition of a deed:
“DEED: A written instrument by which one party, the Grantor, conveys the title of ownership in property to another party, the Grantee.”
A Warranty Deed contains promises, called covenants, that the Grantor makes to the Grantee. These covenants may include simple assurances like the Grantor owns the land described in the deed; that the Grantor has the right to transfer title to the land; or that there are no undeclared encumbrances on the land. The grantor may also make certain future covenants in the Deed. These may include: that the Grantee’s possession will not be disturbed by a third party’s claim; that the Grantor will defend the Grantee against a third party’s claims; and that the Grantor will do whatever future acts are reasonably necessary to lawfully convey title.
A Quitclaim Deed conveys the all grantor’s interest in the land, but makes no warranties or covenants. This type of ownership transfer is like an “AS IS” sale because the Grantor does not make any promises regarding the fitness of title or possible encumbrances that could interfere with the Grantee’s use and possession. It is even possible that the Grantor does not have any title or ownership interest at all!
The Warranty Deed is the most common way of transferring title because it carries assurances guaranteed by the seller warranties. Homebuyers want these types of promises and lenders often require a Warranty Deed in order to qualify for financing.
Quitclaim deeds have a dubious reputation in the real estate industry because they are used by people who either don’t know the condition of the property, as in the case of someone who inherited the property, or who don’t want to take responsibility for potential title defects.
I hope you found this information helpful. Thanks for watching!