A quitclaim deed is a legally recognized document that is used by owners of real property known as the grantors to convey their interest to the recipient (grantee). The grantor surrenders one’s interest in a property, hence giving up ownership to the grantee. As a rule, a quitclaim deed has no title assurance and hence does not give the recipient a guarantee on the condition of the title of the property. The recipient is only permitted to the interest that the grantor has control during the release of the property. It can therefore be concluded that quitclaims do not give any assurances of guarantees or warranties, hence the reason they are used commonly by family members who trust one another to transfer property.
We will write a custom Essay on Common Law: Quitclaim Versus Warranty Deeds specifically for you
301 certified writers online
The fact that I have taken over the property on quitclaim, Dr. Patel foresees some problems pertaining to the family farm. One of the problems that Dr. Patel would anticipate with regard to the property is the fact that there is no assurance on the title of the property because of the lack of a title covenant as the property is transferred using a quitclaim deed. Dr. Patel is, therefore, not sure whether I truly have the ownership of the family farm or the interests that I have on the family farm. The farm does not have warranties
from grandma, who is the grantor in this case; thus, Dr. Patel may be skeptical about the clarity of the farm’s title.
Dr. Patel might also find it difficult to believe that I have an interest in the property. In a quitclaim, if the recipient realizes that after taking over the property, the grantor does not own the property, then the recipient (grantee) may surrender the estate to the bona fide owner. It is for these reasons that Dr. Patel may be reluctant to offer me a loan. Dr. Patel sees a problem because he may not get his money back in the case that I do not repay his money, and on the other hand, I do not have ownership of the land conferred to me by grandma.
A warranty deed, on the other hand, differs from a quitclaim deed from the fact that in a warranty deed, the grantor gives an assurance to the grantee that the property sold has a clear title and that the grantor possesses the right to sell the property to the recipient. In this case, the assurance is not limited to the time of purchase, but it stretches back to earlier owners of the estate. In my case with grandma, if grandma gave me a warranty deed, I would have an assurance that the property has no encumbrances and that the title of the property is clear. I would be sure that the farm has no claims or creditors whatsoever. This would mean that there would be no claims from creditors, and no one would lay claim to the ownership of the farm.
In conclusion, the main difference between a quitclaim deed and a warranty deed is in the guarantee of title ownership and the clarity of title. If grandma gave me a warranty deed, Dr. Patel would be sure that I have a clear title of the farm, unlike if grandma gave me the farm on quitclaim grounds, which would bestow the property to me but gives no assurances.