Real Estate Term of the Day – Quitclaim Deed
A quitclaim deed is a deed that releases interest in a property without stating the nature of the person’s interest or rights, and with no included warranties. These deeds don’t guarantee that the person relinquishing claim had valid ownership, but it does prevent the person from later claiming that they have an interest in the property. A quitclaim usually includes a legal description of the property, the name of the person who is transferring interest, the name of the person receiving interest, and the date of the agreement.
Quitclaim deeds are usually used to transfer property in non-sale situations. Examples include trading properties between family members, adding a spouse to a title after marriage or removing a spouse after a divorce, clarifying ownership of inherited property, or clarifying an easement. Because a quitclaim makes no assurance that the grantor has ownership interest in a property, the buyer of a property accepts the risk that the grantor of the deed may not have valid ownership interest or that there could be other existing ownership interests in the property. Title insurance is also not issued in conjunction with a quitclaim deed.