Quitclaim Deed Planning Guide

What is a Quitclaim Deed?

A quitclaim deed transfers whatever ownership interest the grantor has—if any—without promising that the grantor had clear title. A quitclaim deed’s defining feature is the lack of any warranty of title.

How a Quitclaim Deed Works

A quitclaim deed transfers title from the grantor to the grantee, but it does not guarantee title. The grantee acquires whatever property interest the grantor has, determined at the time the deed is signed. If the grantor did not own the property, or if the property has title defects, the grantee has no recourse against the grantor.

Planning Tip: Before signing, confirm that the grantor actually owns the property interest being transferred. A quitclaim deed only transfers what the grantor owns—nothing more. Verify ownership through the most recent vesting deed or the county’s online land records.

When to Use a Quitclaim Deed

Lifetime Gifts of Real Estate

Property owners often use quitclaim deeds to gift real estate—in legal terms, to transfer property without consideration—while the current owner is still alive. Gifts are motivated by generosity, are between parties with a high degree of trust, and involve no payment. In this context, the grantee rarely asks for guarantees, and the grantor has no incentive to offer them.

These dynamics make quitclaim deeds an almost universal choice when preparing a gift deed (but see the discussion below about states that don’t allow them). Property owners often use quitclaim deeds in the following scenarios:

• Gifting property to a child or other family member to avoid probate

• Adding a new spouse to a property deed after a marriage

• “Taking someone’s name off” of a deed (removing an existing owner)

• Removing an ex-spouse from a property deed after a divorce

In each case, the grantee is usually happy to accept the property “as-is,” with no warranty of title.

Planning Tip: When gifting property, check whether a gift tax return (Form 709) is required. If the property’s value exceeds the annual exclusion amount, the transfer must be reported to the IRS—even if no tax is due.

Transfers to a Trust to Avoid Probate

Property owners often use quitclaim deeds as trust transfer deeds for funding a living trust to avoid probate.

A trust transfer deed names the trustee—usually the same person as the grantor—as the property’s legal owner.

Because the grantor and the trustee are usually the same person, the risk of unexpected title defects is minimal, and there’s no reason to insist on a title warranty.

But in some states, a warranty deed, special warranty deed, or grant deed may be preferable for title insurance purposes. See our planning guide to trust transfer deeds for more information.

Planning Tip: Record the trust transfer deed after the trust is signed. The trust must legally exist before you can deed property into it. Keep a copy of the recorded deed with the trust documents so heirs can easily prove ownership.

Transfers to an LLC or Corporation as Capital Contributions

Business owners often use quitclaim deeds to transfer property to a business organization they control—usually a corporation, LLC, or family limited partnership—as a capital contribution.

For example, a quitclaim deed may transfer rental real estate into a real estate LLC to protect the owners from liability associated with the property.

Because the grantor will continue to own the property indirectly through the business, there’s little risk to transferring title without warranty.

Planning Tip: Have your accountant record the property’s fair market value as a capital contribution on the company’s books. This maintains clear basis records and avoids future tax headaches if the property is sold or distributed.

Resolving Title Defects

A quitclaim deed can cure title defects without a legal proceeding. If ownership is unclear, all potential owners can sign quitclaim deed to show agreement about ownership and avoid the need for a court proceeding.

For example, if documents in the chain of title make it unclear whether Able or Baker is the rightful owner, Baker may quitclaim his interest to Able, establishing Able as the sole owner without requiring a quiet title proceeding.

Recording a quitclaim deed assures title companies and buyers that the owners who signed it won’t contest ownership. This assurance clears title and makes the property more marketable for a future sale.

Planning Tip: When using a quitclaim deed to clean up title, list every person who might claim an interest as a grantor. Leaving out one potential claimant defeats the purpose and could require another corrective deed later.

When Not to Use a Quitclaim Deed

Sale to Unrelated Buyers

Sellers rarely use quitclaim deeds in arm’s-length property sales. Buyers paying for real estate expect a warranty of title, and sellers usually provide it. Most sellers transfer property by warranty deed or special warranty deed rather than by quitclaim deed.

Financed Transactions

Each mortgage-backed sale must meet the lender’s underwriting requirements. Lenders usually require transfer by warranty deed or special warranty deed.

Title Insurance Limitations

merge with next one – Really both about title insurance

States Where the Law Disfavors Quitclaim Deeds

Attorneys and title companies in some states discourage using quitclaim deeds. The most notable example is Texas. Using a quitclaim deed in Texas can break bona fide purchaser protection and create a title defect that makes the property difficult to sell or finance. In Texas, title companies prefer a deed without warranty over a quitclaim deed when transferring property without a warranty of title.

Planning Tip: If any money changes hands, or if the grantee doesn’t know the grantor well, don’t use a quitclaim deed. A warranty or special warranty deed is safer and more acceptable to title insurers and lenders.

Other Names for Quitclaim Deeds

A quitclaim deed is sometimes spelled “quit claim deed” (with an added space) or—incorrectly—called a “quick claim deed.” The two-word version, “quit claim deed,” appears in a few state statutes and is used interchangeably with “quitclaim deed” in practice. Both refer to the same legal document.

In common usage, the name “quitclaim deed” refers to any conveyance that excludes a warranty of title. It is not mutually exclusive with other deed names that refer to other legal features. A deed can be both a quitclaim deed and another deed type, depending on whether the reference is to its intended function or its lack of warranty. For example:

• A life estate deed may be named a quitclaim deed with reserved life estate if it excludes a warranty of title
• A lady bird deed or trust transfer deed that excludes a warranty of title is also a quitclaim deed in form
• In states that allow TOD deeds or beneficiary deeds to include or exclude a warranty of title, these deeds may also be titled quitclaim deed if they transfer title without a warranty

In other words, the name quitclaim deed refers to the form of title transfer (a transfer without warranty), but other terms like life estate deed or lady bird deed can refer to the deed’s function. Both descriptions can be correct; they just emphasize different features of the deed.

Quitclaim Deeds and Title Insurance

Because title insurance eligibility directly affects marketability, understanding how title insurers view quitclaim deeds can prevent costly mistakes.

Title insurance underwriters generally prefer deeds that provide a warranty of title. If a deed provides a warranty of title and the insured later discovers undisclosed title defect, the insured will file a claim under the title insurance policy. Assuming the claim is valid, the title insurance company bears financial responsibility. If the grantor conveyed the property with a warranty of title and the defect breached that warranty, the title insurance company can seek reimbursement from the grantor through subrogation.

There are 19 states where using a quitclaim deed in a sale can affect eligibility for title insurance: Alabama, Arizona, California, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Mississippi, Missouri, Nevada, New York, North Carolina, Pennsylvania, Texas, and Utah.

Title insurance underwriters follow state law. In most U.S. states, the law distinguishes between property transfers and title warranties. A quitclaim deed is a valid transfer, even if it provides no warranty. In these states, title insurance underwriters will routinely insure quitclaim deeds like any other deed.

But in a few other states, attorneys and title insurance companies disfavor quitclaim deeds. In states like Texas, title insurance companies are often reluctant to insure properties that include quitclaim deeds in the chain of title. In these states, title insurers may request that the parties sign a new deed that provides a limited warranty of title—like a special warranty deed—or use a deed without warranty.

Planning Tip: Before recording, check with your title company to confirm that a quitclaim deed won’t break coverage. If it will, ask about endorsements or limited warranty language to preserve protection.

Risks and Limitations of Quitclaim Deeds

The main risk of a quitclaim deed is also its defining feature—it transfers whatever interest the grantor has without guaranteeing that the grantor owns the property or that it is free of title defects. The grantee holds all risk. If the grantor did not own the property transferred by the quitclaim deed, then the grantee gets nothing. If the grantor owned the property but there are title defects, the grantee may need to hire an attorney or bring a quiet title action before the grantee can sell, finance, or deed the property.

When both parties understand the purpose of a quitclaim deed, though, the lack of warranty isn’t a problem—it’s a deliberate choice. The bigger risk is that lack of familiarity with state law—and the alternative deed types that are available—will lead to unintended consequences. For example, if the parties use a quitclaim deed in a state—like Texas—that disfavors quitclaim deeds, recording one can signal that the property’s title is disputed, creating a title defect that didn’t exist before.

Planning Tip: Order a title search before using a quitclaim deed, even between family members. The small cost often prevents expensive surprises when you try to refinance or sell.

Alternatives to Quitclaim Deeds

Whether another deed type is a better fit than a quitclaim deed depends on why the owner is transferring the property.

Quitclaim deeds are best when:

• The parties know and trust each other
• No payment (consideration) is changing hands
• The grantor wants to give the grantee immediate ownership and is okay with not keeping control over the property
• State law and title insurance practices both recognize quitclaim deeds as valid transfer instruments

In all other cases, other deed types should be considered.

Avoiding Probate Without Giving Up Control

If the owner’s goal is to avoid probate at death while keeping full control during life, a quitclaim deed alone won’t work. A quitclaim deed that transfers property during life—also called a gift deed or survivorship deed—gives the grantee an immediate ownership interest. Even if the grantor remains on the title as a joint owner (with a survivorship deed, for example), the grantor loses the ability to freely transfer or finance the property without the grantee’s consent.

If the grantor’s goal is to keep control over the property during life—and only give the grantee an interest when the grantor dies—the following deed types are a better fit:

• Lady bird deed
• Transfer-on-death deed
• Beneficiary deed
• Trust transfer deed

Each of these deed types can allow the grantor to keep control during life and avoid probate at death—something a quitclaim deed without a probate avoidance feature can’t do.

Planning Tip: If your goal is to avoid probate while keeping control, compare your state’s rules for transfer-on-death, lady bird, or trust transfer deeds. Each achieves probate avoidance with fewer risks than a quitclaim deed.

Sales of Real Estate

For real estate sales, buyers—and their lenders—usually require the deed to warrant title. Warranty deeds, special warranty deeds, or grant deeds are usually better tools for property sales.

States That Disfavor or Don’t Recognize Quitclaim Deeds

In states that disfavor quitclaim deeds, use a deed without warranty or, if it meets the parties’ goals, a limited-warranty deed (like a grant deed or special warranty deed).

Planning Tip: If you live in a state that disfavors quitclaim deeds—like Texas or North Carolina—use a deed without warranty instead. It transfers property without warranties but avoids the title problems that come with quitclaim deeds in those states. [actually north carolina doesn’t like no warranty deeds]

States that Recognize Quitclaim Deeds

Almost all U.S. states recognize quitclaim deeds. Most state laws use the name “quitclaim deed,” but state-law differences can produce different results.

Several states—Massachusetts, Connecticut, Maine, and South Dakota—use “quitclaim deed,” not to describe a deed without warranties, but to describe a deed with limited warranties. A “quitclaim deed” in these states is equivalent to a special warranty deed in other states.

Even in states that recognize quitclaim deeds, they can cause title problems. In Texas and North Carolina, for example, title insurers may refuse to cover properties conveyed by a traditional quitclaim deed. In those states, a deed without warranty is usually a safer choice.

See the full Quitclaim Deeds by State guide for a complete list of states, naming variations, and important exceptions.

How to Create a Valid Quitclaim Deed

The law of the state where the property is located determines deed requirements. Every valid quitclaim deed must meet the general requirements for all deeds and the specific language requirements that make it a true quitclaim deed rather than a warranty deed.

General Requirements for All Deeds

Like any deed, a quitclaim deed must meet state-law requirements for validity. These requirements include:

• Formatting rules—such as required margins, font size, page layout, and cover information
• Substantive requirements like the identity of the parties, the legal description of the property, the deed’s preparer, and operative words of conveyance
• Recording requirements, including any cover sheet required by the county, identification of the return-to address, and payment of recording fees and any transfer taxes
• Execution and acknowledgment requirements, including signatures (usually signed by the grantor and, if required, the grantor’s spouse), notary acknowledgments in the form required by the property’s state law, and (in some states) witness signatures

County recorders will reject deeds that fail to meet these technical rules.

Planning Tip: Counties reject deeds for small technical errors. Before recording, compare your document’s format—margins, font size, notary block—to a recently recorded deed from the same county.

Quitclaim-Specific Requirements

The distinguishing feature of a quitclaim deed is what it doesn’t promise. To qualify distinctly as a quitclaim deed, the deed must avoid any language—express or implied—that creates a warranty of title.

A deed preparer who intends to create a quitclaim deed can accidentally create a warranty of title by stating the warranty in the deed (express warranty). But the bigger risk is that the deed will use words that imply a warranty of title. An implied warranty of title can be difficult to detect for someone who is unfamiliar with how state law treats small differences in wording.

Example: Under California law, any deed that uses the word “grant” or “granted” to convey real estate implies a warranty and creates a grant deed, even if the deed is titled “Quitclaim Deed.”

In addition to avoiding language that creates express or implied warranties, the deed must include language that identifies it as a quitclaim deed. The required language varies by state, but most states follow these guidelines:

• The deed’s title should say “Quitclaim Deed”
• The deed should use the verb “quitclaim” in the words of conveyance
• The deed should specify that it is transferring “all right, title, and interest” of the grantor (and not the property itself)

Incorrect wording can turn a quitclaim deed into another deed type, exposing the grantor to liability and causing rejection by the county recorder.

Planning Tip: Avoid using words like “grant” or “convey” unless your state explicitly allows them in quitclaim deeds. In some states—like California—these words automatically create a warranty, changing your deed type.