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.