What Is the Difference Between a Warranty Deed & a Quit Claim for Property?

Never use a quitclaim deed to buy a home.

Buying real state with a warranty deed gives you maximum legal protection in the event there is a problem with title to the property. A quitclaim deed gives you no such protection at all.

Conveyance of Land

When you buy real estate, a transfer of ownership takes place, which in legal terms is called a conveyance of land. In order to be enforceable, a conveyance must be in writing and the document most commonly used is a deed.

Warranty Deed

A warranty deed conveys ownership of land and, when the appropriate language is inserted into the deed, a covenant of warranty is created. This covenant is essentially a contract under which the seller (called the "grantor") agrees to pay damages to the buyer (called the "grantee"), if there is a problem with title to the property.

Warranties

By inserting the words "grant" or "convey" into a warranty deed, the grantor is warranting to the grantee two things: that the property has not been conveyed to anyone else, and that there are no encumbrances on the property, such as liens for unpaid taxes or a mortgage.

Quitclaim Deed

Unlike a warranty deed, a quitclaim deed does not result in the conveyance of land. A quitclaim deed is used to release a claim to property, which is ideal for resolving property disputes, but not for transferring ownership.

Home Buying

The only deed to use when purchasing a home, or any other real estate, is a warranty deed. You may not be able to obtain title insurance without using one.

References

• Types of Deeds
• FindLaw: Deeds FAQ