A quitclaim deed is a legal document where a person transfers their interest in real property to another person. There are various types of deeds to transfer property, which include:
- Gift Deed
- Survivorship Deed
- Warranty Deed
- Bargain and Sale Deed
- Mortgage Deed
What makes a quitclaim deed unique from other deeds is the lack of guarantee concerning the title to the property. With a quitclaim deed, the grantor (i.e., transferor of the property) does not make any guarantees about their property title rights. The grantor is simply transferring any rights they may have on the property.
Grantors will frequently use a quitclaim deed to transfer real estate to a family member or related party for nominal consideration. The transaction also forgoes a title search to verify ownership, and the grantee will not obtain any title insurance.
A quitclaim deed will generally contain the following elements:
- Title of the instrument as a “Quitclaim Deed”
- Date of execution
- Name of the grantor and grantee
- Amount of consideration
- Legal description of the property
Example Quitclaim Deed
John Smith owns a single-family residential property in Sarasota, FL. The fair market value of the property is $250,000. John wants to transfer the property to his daughter, Emily Smith.
John prepares and executes a quitclaim deed to transfer ownership to Emily Smith for $10 of consideration. The deed is signed by the grantor and witnessed by two individuals. It is also notarized and ultimately filed with the Clerk of the Circuit Court of Sarasota County, Florida.