When transferring real estate between a grantor (seller) and a grantee (buyer), there are two ways to transfer the title. One of the ways is through the warranty deed, while the other is a quitclaim deed. A quitclaim deed is mainly used when transferring real property as a gift, through a will, or a trust.
On the other hand, warranty deeds are mainly used when a seller or grantor offers guarantees to the buyer or guarantees that the asset they are transferring is theirs and certifies that it doesn’t have liens. Read on to learn more.
What is a Warranty Deed?
Warranty deeds are legal documents in most commercial and residential real estate transactions. It is a document where the seller offers guarantees about the real property. In other words, the seller assures the buyer that they own the property and have all the rights and legal ability to transfer it.
They also offer assurance that the property has no liens, encumbrances, or easements. And in case of a problem regarding the property after the transaction, the buyer should hold the seller responsible.
What is a Quitclaim Deed?
Quitclaim deeds are used when the transfer of ownership of real property doesn’t occur due to a normal sale. It is mainly used when transferring property ownership to another person as a gift or through a will. The seller or grantor quits any possible claim a buyer or grantee may have after the transaction.
Quitclaim deeds are used when a seller is unsure that the property they are selling is theirs or they don’t know its boundaries and other claims that can be made on the property. The buyer takes the risk of buying the property knowing well the seller doesn’t know the extent of their property rights. Quitclaim deeds offer no guarantees, and a buyer must be cautious when receiving the deed.
What is the Difference Between a Warranty Deed and Quitclaim Deed?
The main difference between a warranty deed and a quitclaim deed is guarantees. Warranty deeds offer guarantees, while quitclaim deeds don’t. Warranty deeds assure the buyer that the seller has all the rights to the property and will transfer the rights to them. The seller also confirms that the property has no liens and easements. So in case the property has liens or turns out not to be what the seller promised, the new owner can sue the seller to recover the damages/losses.
On the other hand, quitclaim deeds don’t have promises or guarantees, meaning the buyer has no remedies. If the property turns out to have liens or not, as promised by the seller, the buyer must deal with the situation independently. With a quitclaim deed, holding the seller responsible for any shortcomings will be hard. In simpler words, a quitclaim does offer protection to the buyer.
So, are you looking to create either a warranty or quitclaim deed for any state in USA? Forms.legal is the go-to place for all these forms, and to create one of the deeds, you fill in the suitable online form template, download and print it. It’s that simple!