What is a quitclaim deed?

How it differs from other deeds

• General warranty deed — the seller guarantees clear title against all claims, even those arising before they owned the property, and promises to defend the buyer. Standard in most home sales.
• Special warranty deed (or grant deed in some states) — the seller guarantees only against problems that arose while they owned the property.
• Quitclaim deed — no guarantees at all. The seller simply “quits” any claim they may have. If they own nothing, the buyer receives nothing.

Common uses

• Divorce — one spouse transfers their interest in the home to the other.
• Family transfers — parents adding a child to title, or siblings consolidating ownership after an inheritance.
• Trusts and entities — moving a home into a living trust or a rental property into an LLC (though some lawyers prefer a warranty or grant deed for these).
• Clearing title — someone who may have a claim, such as a former co-owner or an heir, releases it to remove a cloud on the title.
• Correcting errors — fixing a misspelled name or legal description.

What a quitclaim deed does not do

• It does not remove anyone from the mortgage. A spouse who quitclaims the house after divorce is still liable on the loan unless the lender releases them or the loan is refinanced.
• It does not clear liens. Mortgages, tax liens and judgment liens stay attached to the property.
• It does not guarantee anything. If a problem with the title surfaces later, the recipient has no claim against the person who signed.

Due-on-sale clauses

Most mortgages allow the lender to demand full payment if the property is transferred. Federal law (the Garn-St. Germain Act) bars lenders from enforcing that clause for certain transfers of a home, including to a spouse or children, in a divorce, or into a living trust where the borrower remains a beneficiary. Transfers to an LLC or unrelated person are not protected.

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How to complete one

1. Use a form that meets your state's requirements, with the correct legal description copied from the current deed.
2. Name the grantor (person giving up the interest) and grantee (person receiving it) exactly.
3. Sign before a notary; some states also require witnesses.
4. File any required transfer tax forms or preliminary change-of-ownership reports.
5. Record the deed with the county recorder or register of deeds and pay the recording fee.

An unrecorded deed may still be valid between the parties, but recording protects the new owner against later claims.

Tax consequences

Transferring property for little or no money can be a gift, requiring a federal gift tax return if the value exceeds the annual exclusion (though tax is rarely owed). The recipient takes the giver's tax basis, which can mean a large capital gains tax when the property is sold — whereas inheriting it at death would give a stepped-up basis. Some transfers can also trigger property tax reassessment; California's Proposition 19 limits parent-to-child exclusions, for example. Transfers between spouses and into a revocable trust are generally tax-neutral.

Risks for buyers

Buying property through a quitclaim deed from a stranger is risky, and title insurers may refuse to insure it without further investigation. In an arm's-length purchase, insist on a warranty deed and title insurance.

Getting help

A real estate attorney can prepare and record a quitclaim deed, often for a modest flat fee, and can advise on mortgage, tax and title issues before you sign.

Quitclaim deeds and scams

Fraudsters sometimes pressure homeowners facing foreclosure or older owners to sign quitclaim deeds with promises of help, then take the equity. Never sign a deed you do not fully understand, and never sign one presented by someone you do not know well. Some counties offer free fraud alerts that notify owners when a document is recorded against their property, so a forged transfer can be caught early.