Warranty Deed vs. Quitclaim Deed: How are they different?
Many people think that a warranty deed and a quitclaim deed are interchangeable legal documents, but they are not. You can read all about the basics of a real estate deed HERE. To begin to understand the difference between a warranty deed and a quitclaim deed, remember first the difference between the grantor and the grantee. The grantor is the first party and is the selling or conveying party. The second party is the buying or receiving party, known as the “grantee.”
There is one basic difference between a warranty deed and quitclaim deed: in each deed, the grantor makes a different legal statement. The warranty deed contains a promise by the grantor, called a warranty. But in a quitclaim deed, the grantor does not make any promise or warranty.
A warranty deed promises that the grantor holds good, clear title to a piece of real estate. It promises also that the grantor has the right and authority right to sell it to the grantee or buyer. A quitclaim deed, on the other hand, makes no promises about the quality of the title to the property. Whatever the seller has is given in a quitclaim deed, but the quitclaim deed does not guarantee that the seller holds title to a piece of real estate. A quitclaim deed is simply used to transfer interest in real property.
Example:
Warranty Deed: Promise.
This is my house. I have good, clear title to it, and no one else has any claim to this house. I am giving it to you.
Example:
Quitclaim Deed: No Promises
This is a house. I think it is mine, but I haven’t done the research to confirm it. But, I’m giving you whatever title I have to this house.
In summary, a warranty deed has a lot more legal heft than a quitclaim deed. A warranty deed makes a promise to the buyer that the seller has good title to the property. A quitclaim deed, on the other hand, makes no promises. A quitclaim deed just says; whatever interest I have in this property, I give to you.
Long story short: If you are the buyer, then the warranty deed is more favorable to you because it provides a more solid legal protection. If you’re the seller, the quitclaim deed is more favorable to you. This is because it gives the buyer the least amount of protection, and it is the most seamless way to transfer the property title.
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