Warranty Deed vs. Quitclaim Deed
There are major differences between a Warranty Deed and a Quitclaim Deed.
What's a Warranty Deed?
A Warranty Deed guarantees the title from the seller to the buyer. There is always a full description of the property and guarantees include a representation that the seller owns title free and clear of any liens, easements, or other charges on ownership.
What's a Quitclaim Deed?
Use a Quitclaim Deed when you want to transfer ownership of a property which does not occur as a result of traditional sale, such as transferring title to your spouse as a result of a divorce. Another example is the transfer of property as a gift or to transfer property into a Living Trust. You can also use a Quit Claim Deed when you are not sure of the exact boundaries of a parcel of property. A Quitclaim Deed does not contain guarantees of any kind. This which means, for example,. that you could buy a property from someone else and find out at a later point in time that there is a lien on the property.
The difference between the two types of Deeds is the "Guarantee" of clear title. When you use a Warranty Deed you have a right to sue the seller if it turns out that the title is not clear.When you transfer property with a Quick Claim Deed you have no right to sue if the title is not clear.