A quitclaim deed transfers any ownership interest one person has in a property to another person. This is done without any guarantees that the title is free of problems.
A quitclaim deed is one of the simplest legal tools for moving property ownership from one person to another. The person giving up their interest (called the grantor) signs the deed over to the person getting it (the grantee). That part sounds like any other property deed. Here is the big catch: the grantor makes zero promises about the quality of that ownership interest. They are not saying the title is clean, that there are no liens on the property, or even that they actually own anything at all. They are saying, "Whatever I have, if anything, is now yours."
This is pretty different from what most people expect a deed to do. According to the Consumer Financial Protection Bureau, a quitclaim deed can transfer ownership rights quickly and with minimal paperwork, but it does not come with the title protections that a buyer would normally want in a standard home purchase. This makes quitclaim deeds a poor fit for buying a home from a stranger, but a useful tool when you already trust the other person and know the property's history.
Think of it this way. If your sister wants to sign her half of a family cabin over to you, a quitclaim deed gets that done fast. You both know the history of the property. You are not worried about hidden liens from a previous owner you have never met. But if you were buying that same cabin from someone you found on a listing site? You would want something with a lot more legal backing behind it.
The name itself can cause confusion. Some people call it a "quit claim" deed, and others say "quick claim" deed, thinking it has to do with speed. The real name is quitclaim, one word, and it means the grantor is quitting their claim to the property. Nothing about it promises a fast closing or a clean title.
The mechanics of a quitclaim deed are pretty straightforward, which is part of why people like them for simple transfers. The grantor fills out the deed form with the legal description of the property, the grantee's name, and the county where the property sits. The grantor signs it in front of a notary public. Then the grantee or their representative will take the signed, notarized deed to the county recorder's office and file it.
That filing part matters more than people realize. A quitclaim deed that is signed but never recorded with the county is not enforceable against third parties. According to Cornell Law Institute, recording the deed in the county land records creates a public notice of the ownership change. Without that step, someone else could file a competing claim, and you might have a hard time proving the transfer happened.
Most states require a few basic things on the deed itself: the grantor's and grantee's full legal names, a legal description of the property rather than just the street address, the notarized signature, and sometimes a statement of consideration, which is just the legal term for what the grantee paid. In many quitclaim situations, the consideration listed is "$1" or "love and affection" because no real money changed hands.
What happens after you file? The county updates its land records to show the new owner. If there is a mortgage on the property, that mortgage stays in place. This is the detail that trips up a lot of people, and I will get into it more later in this article.
The whole process can take as little as a few days from signing to recording. Filing fees vary by county, but according to the National Conference of State Legislatures, recording fees for deeds typically run between $10 and $100, depending on where you live. Some counties charge per page, and others have a flat rate. Kentucky, where I live, charges around $32 for recording a standard deed in most counties.
Quitclaim deeds are not for every situation, but they are the right tool for a handful of common ones. Because they skip the title guarantees, they work best when both parties already know each other and trust the condition of the property's title.
Probably the most frequent use is this. Siblings can use one to divide up a property after inheriting it together, or a parent might quitclaim a house to an adult child. In the majority of these situations, title insurance is not required because the family is already familiar with the history of the property. My coworker in our Louisville office said she frequently receives inquiries regarding family transfers, particularly from elderly homeowners who wish to complete their estate planning while they are still able to manage the paperwork. AmeriSave can assist with financing when the new owner is prepared to proceed, but if the family subsequently intends to sell, they will need to have a title search completed.
When a couple splits up and one spouse keeps the house, a quitclaim deed is usually the tool that makes the ownership change official. The spouse who is leaving the property quitclaims their interest to the one who is staying. Courts often order this as part of the divorce settlement. But there is an important thing people miss here: signing a quitclaim deed does not remove you from the mortgage. If both names are on the loan, both people are still responsible for that payment until the loan gets refinanced into one name.
Married couples sometimes need to change how a property's title reads. If you bought the house before you got married and now want to add your spouse, a quitclaim deed can handle that. It works the other direction too. If someone wants to take a name off the title, a quitclaim from that person to the remaining owner will get it done. Your lender will want to know about title changes, so if you have an existing mortgage through AmeriSave or any other lender, call them before you file.
Estate planning attorneys use quitclaim deeds all the time to move a homeowner's property into a living trust. This step can help a family avoid probate, which saves both time and money down the road. The homeowner quitclaims their interest to their trust, and since it is really the same person on both sides of the transfer under a different legal entity, the lack of title guarantees does not create risk.
Sometimes a deed has a misspelled name, a missing middle initial, or the wrong legal description. A corrective quitclaim deed can clear that up without going through a full title action. Title companies run into this more often than you might expect, and a quitclaim is usually the cheapest and fastest fix.
If you are buying a home from someone you do not know, your lender and your real estate attorney are going to want a warranty deed, not a quitclaim. The difference between the two comes down to promises.
With a warranty deed, the seller makes several legal guarantees to the buyer. They promise that they actually own the property. They promise the title is free from liens, encumbrances, and claims from other parties. They also promise that if someone does show up later with a valid claim against the title, the seller is legally responsible for making the buyer whole. These are called covenants, and according to Fannie Mae's Selling Guide, most conventional mortgage transactions require some form of warranty deed to close.
None of those commitments are made in a quitclaim deed. In theory, the grantor may quitclaim property they don't even own, and you wouldn't be able to sue them for it.
In between the two is a document known as a special warranty deed. The seller only guarantees the title under a special warranty deed for the time they held it. They are not responsible for issues that existed prior to their acquisition of the property. Bank sales and foreclosure auctions frequently feature this kind.
Given the existence of warranty deeds, why would anyone utilize a quitclaim? Quickness and ease of use. Title insurance, a title search, and a more complex closing procedure are necessary for a warranty deed. All of that is omitted in a quitclaim. These additional measures are unnecessary when the transfer is between trustworthy parties and the title history is known. However, a warranty deed is the best option if you are dealing with a stranger, a lender, or any actual money. For instance, AmeriSave's loan procedure necessitates a warranty deed for every house purchase closing since our borrowers demand that legal safeguard.
Quitclaim deeds are simple, but that simplicity comes with real downsides if you do not understand what you are getting into.
The biggest risk is that you have no title protection at all. If you accept a quitclaim deed and later find out the property has a tax lien, an unpaid contractor's lien, or some other claim against it, you own that problem now. The person who signed the deed over to you has no obligation to fix it. You cannot go back to them and demand they clear the title, because they never promised the title was clear in the first place.
Fraud is another concern. Because quitclaim deeds do not verify ownership, they can be used by bad actors to create a paper trail that looks legitimate but is not. Someone can file a quitclaim deed claiming to transfer a property they have no connection to. This is why county recorders and title companies have gotten more careful about checking identities and notarization requirements. According to the Federal Bureau of Investigation, real estate fraud, including deed fraud, costs victims hundreds of millions of dollars each year.
Tax implications can catch people off guard too. Even though a quitclaim deed might list $1 as the purchase price, the Internal Revenue Service may still consider the transfer a taxable gift if the property has real value. Gifts above the annual exclusion amount (currently $18,000 per recipient) need to be reported on a gift tax return. That does not necessarily mean you owe tax, because the lifetime exemption is quite high, but you still need to file the paperwork.
One more thing to watch for: quitclaim deeds can complicate your ability to get title insurance later. If the only deed in the property's chain of title is a quitclaim, a title insurance company will often refuse to issue a policy or will charge a higher premium. This can create problems if you ever want to sell the property or take out a mortgage on it.
One of those activities that sounds difficult but is actually rather doable if you follow the instructions is filing a quitclaim deed. If a mortgage is involved or the transfer has tax ramifications, it's a good idea to speak with a lawyer first, even if you might not necessarily need one.
Make sure the form is correct first. What must include on a quitclaim deed varies by state, and several counties in the same state have different regulations. A blank quitclaim deed form can typically be downloaded from your state's court website or obtained from the office of your county recorder. Enter the grantor's and grantee's names, the property's legal description, and the amount of consideration. Your current deed or your county's property records will contain your legal description.
Next, in front of a notary, sign the deed. It is signed by both the notary and the grantor. Additionally, some states demand witnesses. For instance, two witnesses and a notary are necessary for a deed to be deemed legal in Kentucky. Verify the particular requirements of your state before visiting the notary's office.
The notarized deed should then be filed at the county recorder's office where the property is located. Make the filing fee payment. It will be stamped, given a book and page number, and sent to you by the recorder. Keep this copy. This serves as evidence that the transfer occurred and was properly recorded.
Typically, the entire process—from completing the form to receiving your recorded copy back—can be completed in a week. The only significant expense is typically the recording charge, which ranges from $10 to $100 in most locations.
More individuals are caught off guard by this aspect of quitclaim deeds than by anything else. This is where things become complicated.
Ownership is transferred by a quitclaim deed. A mortgage is an independent contract between a lender and a borrower. The mortgage does not disappear when a quitclaim deed is signed. Even if you transfer ownership of the property to another person, you will still be responsible for the mortgage if your name is on it. Who is listed on the title is irrelevant to the lender. Who is on the loan matters to them.
This is an example from actual life that illustrates how this occurs. Let's say you and your ex-spouse used a traditional loan to purchase a $300,000 home. The mortgage was signed by both of you. You give up your interest in your ex during the divorce. Your name remains on the mortgage but is removed from the title. The lender may pursue you for the entire amount if your former partner stops making payments. Your credit suffers as a result. Your report, not only theirs, displays that unpaid invoice.
Most mortgages also have what is called a due-on-sale clause. According to Freddie Mac, this clause gives the lender the right to demand full repayment of the loan if the property is transferred to a new owner. There are exceptions under federal law, including transfers between spouses and transfers into certain trusts, but a quitclaim to a non-exempt person could technically trigger the due-on-sale clause.
If you are going through a situation like this, the safest path is to have the person keeping the property refinance the mortgage into their name alone. That gets the departing spouse off both the title and the loan. AmeriSave can help with that refinance process, and working through it properly protects everyone involved.
A quick and easy method of transferring property between individuals who already have mutual confidence is through a quitclaim document. It is effective for title corrections, estate planning, divorce, and family transfers. For a typical home purchase, do not use one. You need a warranty deed, a title search, and title insurance if there is actual money involved and a stranger on the opposite side. Before you sign anything, understand what a quitclaim can and cannot do. AmeriSave can guide you through every stage of the closing process and ensure you have the appropriate safeguards in place if you want to purchase a house the conventional manner.
Once a quitclaim deed is registered with the county, it cannot be "undone" easily. In order to return the interest to the original grantor, the grantee would have to willingly sign a new quitclaim deed. The original grantor may have to take the case to court if the grantee declines, which can be costly and time-consuming. This is the reason it is crucial to confirm the transfer before filing. AmeriSave's home buying tools can help you comprehend the entire closing process and how deeds play a role if you are thinking about a property transfer as part of a bigger house purchase plan.
No, nothing about the mortgage itself is altered by a quitclaim deed. The responsible borrowers, the loan conditions, and the payment amount remain unchanged. Many people are confused by this throughout divorce. The mortgage is a different contract, but the title is transferred by signing the deed. Both parties still owe the remaining amount if both names appear on the loan. Refinancing the mortgage under a single name is the wisest course of action. After a divorce, AmeriSave's staff may help you sort that out by guiding you through refinancing choices.
The county recording fee, which normally ranges from $10 to $100 depending on the location of the property, is the primary expense. While some counties charge by the page, others charge a fixed cost. It could cost an additional $100 to $500 if you hire a lawyer to draft or review the deed. While many jurisdictions exempt transfers between spouses or family members, you can still be subject to transfer taxes in some states. The types of expenses you may encounter throughout real estate transactions are broken down in AmeriSave's guide to closing costs.
Not precisely. Although ownership can be transferred by a quitclaim deed, it lacks the safeguards associated with a typical house sale. A warranty deed, a title search, title insurance, and a formal closing procedure are all included in a typical sale. All of that is omitted in a quitclaim. The majority of quitclaim transfers take place without any financial exchanges. Anyone purchasing a house through a typical sale should make sure they receive a warranty deed rather than a quitclaim, according to the Consumer Financial Protection Bureau.
Indeed, this is among the most popular applications. Quitclaim deeds are frequently used by estate planning lawyers to transfer property from a person's name into their living trust. By doing this, your family may be able to avoid probate, which will ultimately save time and money on legal fees. The absence of title guarantees is not an issue because you are transferring the property to yourself (as the trustee). AmeriSave's prequalification tool can assist you in determining your position if you also intend to finance or refinance property held in a trust.
A lawyer is not required by law to draft or file a quitclaim deed in the majority of states. You can obtain a form from the state court website or the county recorder's office, complete it, have it notarized, and submit it on your own. However, if a mortgage is involved, if there are possible tax ramifications, or if you are unsure about the property's title history, it is wise to speak with a real estate lawyer. The cost of an attorney examining a quitclaim deed is typically rather low. For additional information on safeguarding yourself during property transfers, see AmeriSave's title insurance guide.
There is nothing that prevents someone from signing a quitclaim deed for real estate in which they have no interest. Although the deed is legally enforceable, nothing is transferred because the grantor had nothing to give. Since a quitclaim does not guarantee possession, the grantee in that situation has no legal claim against the grantor. This is one of the primary causes of the need of title insurance in real estate transactions. It guards against precisely this kind of circumstance.
No. A quitclaim deed does not remove liens, mortgages, tax obligations, or other encumbrances on the property; rather, it conveys the grantor's ownership interest, whatever it may be. After the quitclaim transfer, a $200,000 mortgage and a $5,000 tax debt remain linked to the property. These responsibilities are passed on to the next owner along with the title. Visit AmeriSave's home buying page to find out more about how title problems and liens impact house purchases.
Depending on the circumstances, it might. A due-on-sale clause in the majority of mortgages allows the lender to declare the loan due in the event that ownership changes. The Garn-St. Germain Act, a federal statute, establishes exceptions for transfers between spouses, into specific trusts, and to a relative upon the borrower's passing. However, the lender may be able to demand full repayment if a quitclaim is made to someone who is not covered by those exceptions. Consult your lender before transferring any property that has an outstanding loan. You can examine your alternatives and determine whether a refinance is the better course of action by visiting AmeriSave's mortgage rates page.
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