Definition of ‘Quitclaim Deed’
A deed releasing a person’s interest in a property without stating the nature of the person’s interest or rights, and with no warranties of that person’s interest or rights in the property. A quitclaim deed neither states nor guarantees that the person relinquishing their claim to the property had valid ownership, but it does prevent that person (the grantor) from later claiming he/she has an interest in the property. A quitclaim deed usually includes a legal description of the property, the name of the person who is transferring his/her interest, the name of the person who is receiving that interest (the grantee), the date and both parties’ notarized signatures.
Investopedia explains ‘Quitclaim Deed’
Quitclaim deeds are typically used to transfer property in non-sale situations, such as transfers of property between family members. They can be used to add a spouse to a property title after marriage, remove a spouse from a title after divorce, clarify ownership of inherited property, transfer property into or out of a revocable living trust, clarify an easement or change how a property’s title is held.
A quitclaim deed makes no assurance that the grantor actually has an ownership interest in a property; it merely states that if the grantor does, he/she releases those ownership rights. As a result, when accepting a quitclaim deed, the buyer of a property accepts the risk that the grantor of the deed may not have a valid ownership interest and/or that there may be additional ownership interests in the property. Title insurance is not issued in conjunction with a quitclaim deed.
The other two types of written documents that may be used to legally transfer property are general warranty deeds and specialty warranty deeds. These deeds are typically used in property sales and do make warranties about the property’s title. They state that the owner can legally transfer the property and that no other entity has a claim on it.