Difference Between Quit Claim Deed and Warranty Deed

Edited by Diffzy | Updated on: October 06, 2022

       

Difference Between Quit Claim Deed and Warranty Deed Difference Between Quit Claim Deed and Warranty Deed

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Introduction

If you own property or are looking to buy property, having understanding of deeds is essential. A deed is a basic piece of paper that includes the language of conveyance and whose duty it is to transfer ownership of real estate from one entity or person to another. As a result, the ownership of a piece of property may be changed via the use of a deed. There are many different kinds of deeds, but we are just going to cover quit claim deeds and warranty deeds in this lesson. Even while both have the ability to transfer ownership of a piece of property from one person to another, the parties involved are not afforded the same level of protection by either option.

Quit Claim Deeds have a range of applications, including the sale of real estate and personal property, as well as the transfer of financial assets and other types of assets. The title to a piece of real estate may be verified with the use of a document called a Warranty Deed. In addition, a Warranty Deed is not the same as a Quitclaim Deed, which is a document that states a person has given up their claim to a piece of land and will not make any more claims in the future. The Quit Claim Deed and the Warranty Deed can seem the same, but they are not the same thing at all.

Quit Claim Deed vs Warranty Deed

The main difference between a quit claim deed and a warranty deed is that the former transfers ownership of the deed holder's property to a third party while the latter does not contain any additional legal protections or rights. On the other hand, in the case of a Warranty Deed, the grantor is the only person who has the legal right to sign the deed. In addition, this implies that the transfer of all of one's rights associated with real estate may often be done only by an individual who has complete legal power.

As part of the process of settling an inheritance and transferring ownership among heirs, a quit claim deed may be used. In addition, it is sometimes referred to as "an estate deed." It would not be termed a "Quit Claim" if the complete title to the land were transferred; rather, it would be regarded as a full conveyance of ownership of the property.

This is a document that allows the grantor to transfer any claim, title, or interest that they have in a piece of property to another individual. On the other hand, it does not provide any assurances as to the legitimacy of the title, interest, or claim in question. This indicates that it is possible to acquire property, get a quitclaim document, and then discover at a later date that the transaction was not done in accordance with legal requirements.

This kind of deed is often used in situations in which the change in property ownership does not take place as a direct consequence of a conventional sale of the property. For example, a quitclaim document may be used in situations in which:

  • A gift, a bequest, or the terms of a divorce settlement may all be used to transfer ownership of property.
  • When someone wants to sell a property but is unsure whether or not any additional claims may be made on the land, this situation is known as "willing to sell but not sure."

An Assurance It is important to note that Deed is not exactly like other deeds. It is used in the process of transferring ownership of property from one individual to another. It is comparable to other deeds, but it additionally contains an explicit warranty. This warranty specifies that the person who signed the deed grantor declares or guarantees that they have the legal right to sell the land. Other deeds do not have this provision.

A warranty deed is a document that guarantees that no other person has a claim to the property that is being transferred. This assurance is given in the form of a legal statement.

A warranty deed stipulates the following:

  • No one, including creditors and lenders, has the legal right to use the property as collateral, and such right does not exist.
  • The grantor, in their capacity as the property's lawful owner, has the legal authority to transfer the property.
  • The buyer has the right to full compensation if the property is ever claimed by another party, which is impossible since the property cannot be claimed by anyone else.

Difference Between Quit Claim Deed and Warranty Deed in Tabular Form

Table: Quit Claim Deed vs Warranty Deed
Parameter of Comparison
Quit Claim Deed
Warranty Deed
Defenition
 A quitclaim deed is a kind of legal instrument that is used to transfer ownership of a piece of property from one person to another.
 The legal document that is used to transfer ownership of real property is known as a warranty deed.
Origin
 It was established in the year 1800.
 It was established in the year 1437.
Legal Liabilities.
 No legal responsibilities.
Legal liabilities are present.
Ownership
 The transfer of ownership from one party to another.
 a process that changes who owns a piece of real estate
Guarantor
No
Yes

What is Quit Claim Deed?

A quitclaim deed is a document that may be used to transfer any potential interest in real estate to another party. This kind of legal document is only beneficial in certain circumstances due to the fact that a quitclaim does not provide any kind of ownership assurance. A quitclaim deed is essentially simply a document that provides you with a fast and simple means to surrender any claim that you may have on a piece of land so that you can hand it on to another else.

When one person, known as the grantor, wants to transfer their interest in property to another person, known as the grantee, a quitclaim deed is the document that is utilized. This kind of deed is also known as a non-warranty deed due to the fact that the property title is transferred without any form of warranty being attached to it. The use of quitclaim deeds is most common amongst parties who are familiar with one another, such as divorce spouses or members of the same family.

A quit claim deed is a document that transfers ownership of the deed holder's property to another person, but it does not provide any further specifics regarding the agreement that was reached between the two parties. At first appearance, a complete title may seem to be a simpler document to read and comprehend than a quit claim deed. In addition to that, it provides details on the individuals who own the various parts of the property.

There is no connection between a "quit claim" provision in a contract and a "quit claim" deed. The phrase "quit claim" does not imply that the agreement should be construed as no longer being in force or effect even if it is labeled as such.

When selling real estate, a Quit Claim Deed is often used. In the event that a piece of real estate is sold for the purpose of clearing title, such as in the case of a foreclosure, banks and other financial institutions often offer a quitclaim deed. This indicates that whomever buys real estate with a quitclaim deed will take over ownership of the property subject to any debts or liens that are still due on that piece of land.

Quit Claim Deeds are not used to transfer land or property; rather, they are used to transfer the rights and obligations that come with owning property after it has been purchased. The simple act of transferring ownership from one party to another is what we mean when we talk about transferring titles. Quit Claim Deeds are used to transfer just the interest of the named owner, without any promises on the validity of the previous owner's title. Quit Claim Deeds are used to transfer only the interest of the identified owner.

What is Warranty Deed?

A warranty deed is a document that is used in the real estate industry to verify that a property is held in its whole without any liens or encumbrances. This indicates that the owner has the legal right to be free and clear of any liens, mortgages, or other sorts of claims against the property. In other words, the evidence of ownership often takes the form of a warranty deed form.

During the course of a real estate transaction, warranty deeds may become relevant. There are two parties engaged in the transaction: the buyer and the selling, either of whom might be a person or a company. The warranty deed is presented to the buyer by the seller as evidence that the seller is authorized to transfer ownership of the property.

A warranty deed is the best possible protection for a buyer of a house. It provides the highest degree of security since you won't have to worry about anybody else having a legal claim on the property, giving you the piece of mind that you deserve. A buyer could get himself into a terrible predicament if there is no warranty deed included in the transaction. They could be overjoyed to get started on the process of purchasing a house, but then they might learn that the property in question is subject to liens. If you want to sell real estate, you need get a warranty deed so that you can demonstrate to prospective purchasers that you are the legal owner of the land.

The paperwork known as the warranty is what confers ownership rights on whomever purchases the property. It details the whole of the title information pertaining to the property that was included in the first deed for the property. In addition, in order to transfer property through a warranty deed, some prerequisites have to be satisfied.

The vast majority of warranty deeds may only be used if the property in question is free and clear of any outstanding mortgages, taxes, liens, attachments, or judgements. Additionally, the grantor has to be able to demonstrate that they have the legal power to sign the deed. This indicates that the transfer of all of a person's rights to a piece of real estate may often only be done by someone who has complete legal power over the transaction.

The legal document that is used to transfer ownership of real property is known as a warranty deed. It is common practice for a person selling their house to sign both a deed and a warranty deed when selling the property. The buyer receives some kind of assurance or guarantee from the second document, which follows the first document that transfers ownership or the legal title to the new owner. The guarantee is comprised of this promise.

Warranty Deed is an assurance that the seller has clear title to the property and will not later appear and demand any additional payment from the buyer based on such later-disclosed problems as unpaid taxes, unpaid or outstanding mortgages, or pending lawsuits or other claims. Warranty Deed also ensures that the seller will not later appear and demand any additional payment from the buyer based on such later-disclosed problems.

Main Differences Between Quit Claim Deed and Warranty Deed in Points

  • The difference between a quit claim deed and a warranty deed is that the former is a document that transfers ownership of the deed holder's property to another party, while the latter is a document that verifies the title of a particular piece of real estate.
  • In the year 1800, the Quit Claim Deed was established, while the Warranty Deed was established in the year 1437.
  • Contrary to Warranty Deeds, Quit Claim Deeds do not carry any legal responsibilities or obligations on their own.
  • Quit Claim The existence of a guarantor is not mentioned anywhere in the deed. In the Warranty Deed, the existence of a guarantor is indicated.
  • A Warranty Deed is used to transfer ownership of real property, whereas a Quit Claim Deed is used to give ownership of real property to another person.
  • Due to the fact that a quitclaim deed simply conveys the grantor's interest in the property, it does not provide any guarantees on the titles of the real estate. On the other hand, a warranty deed provides the grantor with assurances on the property rights and legal title to the property.
  • The promise is not protected in any way by a quitclaim deed, which is unique among types of deeds. This indicates that the grantee does not have any legal remedies available to them against the grantor in the event that the property has any flaws or claims to it. On the other hand, a warranty deed provides the grantee with protection and the ability to sue the grantor in the event that there are any irregularities or faults in the property.
  • Since quitclaim deeds are less complicated to put into action, more people use them. On the other hand, there are a number of prerequisites that must be met before warranty deeds may be used. They provide detailed descriptions of the property as well as a clean title to the real estate in question. Because of this, a lot of people think using them is difficult.

Conclusion

When selling land or a house, as well as when transferring title of any sort of property (real estate, personal property, car, trust), a quit claim deed is often used as the document of choice. The legal document that is used to transfer ownership of real property is known as a warranty deed. In addition to this, it guarantees the individual or company that possesses the deed that their ownership of the property is unmistakable and that they have the authority to sell it.

When compared to a quit claim deed, a warranty deed is quite different from its counterpart. In addition, a Quit Claim Deed may be used in the process of settling an estate in certain jurisdictions. This involves the distribution of ownership rights amongst the various heirs. The only purpose of a quit claim deed is to transfer solely the ownership interest in a piece of property without making any representations or guarantees about the legality of the title held by the prior owner. A warranty deed will often include property rights, a grantor who has the legal capacity to sign the deed, and a guarantee stating that the buyer will not be subject to any legal action in the future.

References

  1. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/orglr35§ion=20
  2. https://archive.dennishistsoc.org/handle/10766/1764

Category

Law


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"Difference Between Quit Claim Deed and Warranty Deed." Diffzy.com, 2022. Fri. 09 Dec. 2022. <https://www.diffzy.com/article/difference-between-quit-claim-deed-and-warranty-431>.



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