What is the difference between a quitclaim deed and a warranty deed?

A warranty deed includes guarantees (covenants) that the grantor has clear title to the property and will defend the grantee against any claims. A quitclaim deed makes no such promises. Warranty deeds are used in standard real estate sales; quitclaim deeds are used in family transfers, divorce settlements, and trust transfers where title warranties are not needed.

When should you use a quitclaim deed?

Use a quitclaim deed when transferring property between people who know and trust each other and where title quality is not in question: divorce transfers, adding or removing a spouse from title, placing property in a living trust, family gift transfers, or correcting a technical error in a prior deed. Do not use a quitclaim deed in arm's-length sales between strangers.

Does a quitclaim deed need to be notarized?

Yes, in virtually every state. The grantor must sign the quitclaim deed in front of a notary public for the deed to be recordable and legally effective. Some states also require one or two witnesses in addition to the notary. An unnotarized deed cannot be recorded with the county.

How do I file a quitclaim deed?

After the grantor signs the deed before a notary, take the original deed to the county recorder's (or register of deeds') office in the county where the property is located. Pay the recording fee and any required transfer taxes. The county will stamp and return the recorded deed.

Does a quitclaim deed affect the mortgage?

Transferring property via quitclaim deed can trigger the due-on-sale clause in an existing mortgage, requiring immediate full repayment of the loan. However, the Garn-St. Germain Act protects certain transfers, including to a living trust, to a spouse or child, or transfers resulting from divorce. Always review the mortgage and consult an attorney before transferring mortgaged property.

Is a quitclaim deed a gift?

Not necessarily, but it often is. A quitclaim deed is simply a form of deed that makes no title warranties. It can be used for a sale, a gift, a divorce transfer, or a trust transfer. Whether a transfer is a gift for tax purposes depends on whether adequate consideration was paid, not on which type of deed was used.

What are the tax implications of a quitclaim deed?

A quitclaim deed that constitutes a gift may require filing IRS Form 709 (Gift Tax Return) if the value exceeds the annual exclusion. The grantee inherits the grantor's cost basis, which can result in capital gains tax liability when the property is later sold. Some states also impose transfer taxes and may reassess the property's value for property tax purposes.

Can a quitclaim deed be reversed?

Generally no. Once a properly executed and recorded quitclaim deed has been delivered and accepted, the transfer is complete and cannot be unilaterally reversed. The only way to undo the transfer is for the grantee to execute a new quitclaim deed transferring the property back to the original grantor, or through a court proceeding in cases of fraud or undue influence.

What happens if the grantor had no interest in the property?

If the grantor had no ownership interest in the property at the time of the quitclaim deed, the grantee receives nothing. The deed is not void, but it transfers no interest. The grantee has no recourse against the grantor under the deed itself because the grantor made no promise about title. This is why quitclaim deeds are unsuitable for arm's-length sales.

What Is a Quitclaim Deed? How It Works and When to Use One

A quitclaim deed is a legal document that transfers whatever ownership interest the grantor has in a property to the grantee, with no warranty or guarantee that the grantor actually owns the property or that the title is free of liens and defects.

This is the defining characteristic of a quitclaim deed the grantor conveys only what they have, and nothing more. If it turns out the grantor had no interest, the grantee receives nothing and has no recourse against the grantor based on the deed alone.

What Is a Quitclaim Deed?

A quitclaim deed is the simplest and fastest way to transfer real property because it makes no promises about the quality of title.

The grantor "quits" whatever claim they have to the property and conveys it to the grantee. Because no title warranties are involved, quitclaim deeds are used almost exclusively between parties who already know and trust each other or who have a legal relationship that makes the title quality less critical, such as in a divorce, a family gift, or a transfer to a living trust.

Quitclaim deeds are not used in arm's-length real estate sales between strangers. A buyer purchasing a home from a developer or a homeowner will demand a warranty deed or a grant deed to obtain the legal protection that comes with title guarantees.

Quitclaim Deed vs. Warranty Deed vs. Grant Deed

Understanding the difference between deed types is essential before choosing which to use.

Feature	Quitclaim Deed	General Warranty Deed	Grant Deed
Title guarantee	None	Full (all time)	Partial (grantor's ownership period)
Grantor liability if title defective	None	Yes, for any defect anytime	Yes, for defects during ownership
Used in arm's-length sales?	No	Yes (common in most states)	Yes (common in CA, AZ, NV)
Used for family transfers?	Yes	Rarely needed	Occasionally
Requires title search?	Strongly recommended	Required by lenders	Required by lenders
Qualifies for title insurance?	Grantee may struggle	Yes	Yes
Ease of preparation	Simplest	More complex	Moderate
Common states	All states	Midwest, South, East	California, Arizona, Nevada

When to Use a Quitclaim Deed

Quitclaim deeds are appropriate in a limited set of circumstances where title guarantees are not necessary or practical:

Divorce property transfers: When one spouse transfers their interest in marital property to the other spouse as part of a divorce settlement, a quitclaim deed is the standard instrument. Both parties know the property's history, and the transfer is conducted as part of a court-supervised process.
Adding or removing a spouse from title: When spouses want to add or remove a name from a property title, such as after marriage, remarriage, or a name change, a quitclaim deed is an efficient way to accomplish the transfer.
Transferring property to a living trust: When a property owner places their home in a revocable living trust for estate planning purposes, a quitclaim deed is typically used because the grantor and the trustee are effectively the same person, so there is no risk from the absence of title warranties.
Family gifts of real property: When parents give a home or land to their children, or other intrafamily property transfers are made without payment, a quitclaim deed is commonly used because both parties understand the property's history and the donor's interest in it. Similar principles apply when transferring business ownership, where an Assignment of LLC Interest is used to transfer membership interests rather than real property.
Correcting a title defect or scrivener's error: If a prior deed contained a misspelled name, incorrect legal description, or other technical error, a corrective quitclaim deed from the original grantor to the original grantee (or their successor) is a common fix.
Clearing a potential cloud on title: If someone might have a claim to property based on an ambiguous prior conveyance, obtaining a quitclaim deed from that person releases their potential interest, clearing the cloud.

When NOT to Use a Quitclaim Deed

A quitclaim deed is inappropriate when the grantee needs certainty that the title is clean:

Arm's-length real estate sales: A buyer purchasing property at fair market value under a Purchase Agreement should always insist on a general warranty deed and obtain title insurance.
When the property has an existing mortgage: See the due-on-sale clause discussion below. Transferring mortgaged property via a quitclaim deed without the lender's consent may trigger the mortgage's due-on-sale clause, requiring immediate repayment.
When the buyer is financing the purchase with a lender or through a Contract for Deed, mortgage lenders generally will not accept a quitclaim deed as the final instrument of conveyance because they require stronger title protections.
When title history is unknown or complex: If there is any uncertainty about prior ownership, liens, encumbrances, or easements, a warranty deed and full title insurance are necessary.

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What to Include in a Quitclaim Deed

Grantor information: The full legal name and address of the person transferring the property. The name must match exactly how the grantor's name appears on the deed by which they acquired the property.
Grantee information: The full legal name and address of the person receiving the property. If the property is being transferred to a trust, use the trustee's name and trust name.
Legal description of the property: The complete legal description as it appears in the county land records, including lot number, block, subdivision, township, range, and section as applicable. A street address alone is not sufficient.
Consideration: The amount paid (even if nominal, such as "ten dollars and other good and valuable consideration") or a statement that the transfer is a gift. Most states require some recitation of consideration even in gift transfers.
Granting clause: The language through which the grantor conveys their interest, such as "Grantor hereby quitclaims to Grantee all right, title, and interest in the following described property." State-specific statutory language may be required.
Habendum clause: Language describing the nature of the estate being conveyed, typically "to have and to hold" the property in fee simple.
Execution date: The date on which the grantor signs the deed.
Grantor signature: The grantor must sign the deed. In most states, only the grantor signs; the grantee does not sign a deed.
Notarization: A quitclaim deed must be signed in front of a notary public in virtually every state. Some states also require witnesses.
Return address: The address to which the recorded deed should be mailed after recording.

How to File a Quitclaim Deed: Step by Step

Obtain the legal description of the property from the current deed or county land records. Do not use the street address as the legal description.
Prepare the quitclaim deed using a state-specific form that complies with your state's deed requirements, including any required statutory language.
The grantor signs the deed in front of a notary public. Some states also require one or two witnesses in addition to the notary.
Take the original, notarized deed to the county recorder's (or register of deeds') office in the county where the property is located.
Pay the deed recording fee. Fees vary by county and state, typically ranging from $10 to $30 per page.
Pay any required transfer taxes or excise taxes. The amount depends on the state and, in some cases, the consideration paid.
Complete any required transfer disclosure or property tax forms required by the county at the time of recording.
The county recorder stamps the deed with recording information (book, page, and date) and returns the original to the grantee or the address listed on the deed.
Store the recorded deed in a safe place. The grantee now holds the recorded evidence of their ownership interest.

State Recording Requirements for Quitclaim Deeds

All states require quitclaim deeds to be recorded with the county to be effective against third parties, but the specific requirements vary.

State	Notary Required?	Witnesses Required?	Transfer Tax?
California	Yes	None required	Documentary transfer tax applies; gifts may be exempt
Florida	Yes	2 witnesses required	Documentary stamp tax applies; rate based on consideration
Texas	Yes	None required	No state transfer tax; some counties have local fees
New York	Yes	None required	Transfer tax applies; NYC has additional taxes
Illinois	Yes	None required	Real estate transfer tax; some exemptions for family transfers
Georgia	Yes	2 witnesses required	Real estate transfer tax; rate per $500 of consideration
Ohio	Yes	None required	Conveyance fee applies; rate per $1,000 of consideration
Michigan	Yes	None required	State transfer tax plus county tax; exemptions for certain family transfers

Always verify current requirements with the county recorder's office where the property is located, as requirements and fees change.

Quitclaim Deeds and Existing Mortgages: The Due-on-Sale Clause

One of the most overlooked risks in quitclaim deed transfers is the due-on-sale clause in the grantor's existing mortgage.

Most residential mortgages contain a due-on-sale clause that allows the lender to demand immediate repayment of the entire loan balance if the property is transferred without the lender's consent. [6]

Transferring mortgaged property via quitclaim deed to a family member or trust may trigger this clause, even if no money changes hands.

However, the Garn-St. Germain Depository Institutions Act (12 U.S.C. 1701j-3) provides important exceptions.

Under Garn-St. Germain, lenders generally cannot enforce a due-on-sale clause when:

Transfer to a revocable living trust: The borrower transfers the property to a revocable inter vivos (living) trust in which the borrower remains a beneficiary and there is no change in occupancy.
Transfer to a spouse or children: The property is transferred to a relative upon the death of the borrower, or a transfer where the borrower's spouse or children will become an owner of the property.
Divorce transfer: The property is transferred to a spouse or child when the transfer results from dissolution of marriage, legal separation agreement, or incidental property settlement agreement.

Even within these exceptions, it is best practice to notify the lender and verify that the transfer falls within a protected exception before executing the deed.

Tax Implications of Quitclaim Deeds

Quitclaim deeds can trigger federal and state tax obligations depending on the circumstances:

Gift tax (IRS Form 709): When property is transferred via quitclaim deed without adequate consideration (i.e., as a gift), the transfer may be a taxable gift subject to federal gift tax reporting. The annual gift tax exclusion is $18,000 per recipient (2024). Amounts above the exclusion must be reported on IRS Form 709. Gift tax is generally owed only after the grantor's lifetime exemption (currently over $13 million) is exhausted.
Capital gains tax (grantee's future sale): The grantee takes the grantor's cost basis in the property when they receive it as a gift. If the grantee later sells the property, they will owe capital gains tax on the difference between the sale price and the original basis, which could be substantial if the property has appreciated significantly.
Property tax reassessment: Some states (notably California, under Proposition 19) reassess property values for tax purposes when title is transferred, even between family members. This can result in significantly higher annual property taxes for the grantee.
Transfer taxes: Many states impose a real estate transfer tax based on the consideration paid. Gift transfers may be exempt or taxed at a reduced rate, depending on state law.

Consult a tax advisor or estate planning attorney before using a quitclaim deed for any gift or family transfer, especially if the transfer interacts with a Last Will and Testament or broader estate planning goals.

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Common Mistakes When Using a Quitclaim Deed

Using a quitclaim deed in an arm's-length sale: Buyers who accept a quitclaim deed instead of a warranty deed in a market-value sale have no recourse against the seller if a title defect emerges later. Always use a warranty deed and title insurance in commercial real estate transactions.
Not ordering a title search: Even in family transfers, a title search is strongly recommended to confirm that no liens, unpaid taxes, or encumbrances exist that the grantee would inherit.
Transferring mortgaged property without checking the due-on-sale clause: Transferring a home with an existing mortgage can trigger the due-on-sale clause, requiring immediate repayment in full. Always review the mortgage and consult a real estate attorney before transferring mortgaged property.
Using an incorrect or incomplete legal description: A deed with an incorrect legal description may not transfer the intended property and could be void. Always copy the legal description verbatim from the existing deed or county records.
Forgetting to record the deed: An unrecorded deed is generally not effective against third parties. A subsequent deed from the same grantor that is recorded first may take priority over an earlier unrecorded deed in many states.
Not accounting for gift tax: Transferring valuable real property as a gift without filing IRS Form 709 when required can result in penalties. Even if no gift tax is owed, the transfer may need to be reported.

Disclaimer: This guide is for general informational purposes only and does not constitute legal advice. Laws vary by state and jurisdiction and may change without notice. Consult a licensed attorney for advice specific to your situation. Check your state's requirements before finalizing any legal document.