Quitclaim Deed vs. Grant Deed . A Grant Deed, like the two types of warranty deeds, shows that you have clear title to sell and no knowledge of anything that might impact the title. For example, if the grantor jointly owns a property with a cotenant and purports to transfer the entire property to the grantee even though he does not own the entire property at the time of the transfer, if the grantor obtains his cotenant’s interest after the grantor signs the grant deed, the cotenant’s 50% will still transfer to the grantee. In many cases, a quitclaim deed is not sufficient for transferring ownership, because it offers no guarantees. If you are selling a home here in California, the buyer will likely want you to convey a grant deed warranting that the home the buyer is purchasing actually belongs to you and you have good and marketable title to the home that is being sold. The grantor is personally liable for such encumbrances whether or not he knew about the encumbrance or defect in title; however, the grantor must have caused the encumbrance in order to be held personally liable for it. A quitclaim deed is used either when the grantor has no need to guarantee title, or when the grantor’s title is unclear. The judge may have said that John gets the house, but that doesn’t actually remove Mary’s ownership interest in this property. A quitclaim deed operates to release to the grantee all interest the grantor may hold in the property. However, unlike a grant deed, a quitclaim does not include the above two implied covenants. Deed varieties also change in Various areas of the region. A quitclaim deed transfers to the grantee all of the right, title, and interest that the grantor had at the time the deed was executed and delivered which are capable of being conveyed by a deed. The seller or donor is the grantor; the recipient is the grantee. Some states use the term “Grant Deed”, California being one of the most preeminent. John has “won” the house in the divorce. A grantee does not have the right to sue the grantor for any encumbrances on the property or defects in title. All grant deeds include the following two implied warranties: (1) the grantor did not transfer the same property to another grantee and (2) the property is free from encumbrances that were done, made, or suffered by the grantor. A title deed shows ownership of the property executed between two parties: grantee (buyer) and grantor (seller). A grant deed is commonly used in most arms-length real estate transactions not involving family members or spouses. There is no guarantee in a quitclaim deed. A primary difference is that a grant deed provides certain warranties from the grantor to the grantee. Quitclaim Deed vs. Warranty Deed vs. Special Warranty Deed . A grant deed and quitclaim deed, regardless of which is one used, can be complicated to execute and you should consult a real estate attorney before attempting to do one on your own. Property or real estate will be described in full and the owner’s name and signature will also be included in title deeds. The most significant difference between grant deeds and quitclaim deeds is the level of guarantee. GRANT DEED COMPARED WITH QUITCLAIM DEED. They allow the grantee to sue the grantor in the event the grantor breaches either of these covenants. This warranty, though not explicit, exists in all grant deeds. Finally, the grantor has to sign it. John and Mary have divorced. In California, quitclaim deeds are commonly used between spouses, relatives, or if a property owner is transferring his or her property into his or her trust. Quitclaim deeds are similar to grant deeds in that they convey rights to a property, but with one key difference. Unlike a grant deed, a quitclaim deed operates to release to the grantee all interest the grantor may hold in the property. All Rights Reserved. A quitclaim deed transfers all the right, title, and interest the grantor holds in the real property at the time of the transfer. When it comes to a Warranty Deed vs. a Quitclaim Deed, the central difference lies in … When title to property is transferred, the county may impose a transfer tax and may reassess the value of the property which could result in … Both grant deeds and quitclaim deeds convey ownership in a piece of property to another person. A quitclaim deed conveys someone’s interest in real property to someone else. The quitclaim deed provides no warranties; it conveys the interest the grantor had in the property—nothing more. But it doesn’t include the warranty that you’ll defend the title against other people who may end up having claims to it after the sale takes place. A Grant deed requires special language to ensure that the deed qualifi es as a Grant deed. Quitclaims are most often used during a divorce, to deed the property from one spouse to the other. It transfers whatever interest the grantor may have in the property, whether legal or equitable, and is as effective as any other form of conveyance to transfer the grantor’s title to the grantee. Only certain states use a trust deed in lieu of a traditional mortgage. Absolute ownership or “fee” title is conveyed, Any ownership that come to the Grantor afterwards – “after-acquired” title – is also conveyed. The term “grant” is one of the key words in the deed that distinguishes a grant deed from a quitclaim deed. I suggest consulting with a real estate attorney if you have questions about the title in your particular situation. GRANT DEED Fee: $129. A grant deed is the legal document that is used to indicate the transfer of property or real estate from one party to another. However, the fundamental difference between the two is that a grant deed conveys the property interest the grantor has in the property, but also warrants that the grantor actually owns the property and the new owner will not be liable for any unknown ownership claims. When you need to simplify your business and ensure your interests are protected, you need the help of Beverly Hills Law Corp. www.JFalconeLaw.com The quitclaim is famous for being the simplest way to give up an interest in real estate. He is both a real estate broker and a real estate attorney who practices throughout Beverly Hills, Los Angeles, and Orange County. A quitclaim deed is typically used to transfer ownership of co-owned property to one of the owners; but, it can be used to transfer ownership to a non-owner. Deeds are usually differentiated by what they state or guarantee when the ownership is transferred from … The grantor might be a legal owner or the grantor might never have formally been identified on a deed describing the property. Quitclaim deeds reject ownership that any would-be seller might have in the property. A quitclaim deed makes it clear to the buyer that the seller … In deed language, the “grantor” is the person or entity who grants the property and signs the deed; the “grantee” is the one who receives the interest in the property. The reality is that a Grant Deed can be used as a Quitclaim Deed OR a Warranty Deed. Grant Deed . A quitclaim deed terminates any interest in the real estate described in the deed which may be held by the named person (grantor) signing and delivering the quitclaim deed. Grant deeds “grant” an interest in real property to the grantee. © 2021 All Rights Reserved Beverly Hills Law Corp., PC | Attorney Advertising | Privacy Policy. All grant deeds include the following two implied warranties: (1) the grantor did not transfer the same property to another grantee and (2) the property is free from encumbrances that were done, made, or suffered by the grantor. Bottom line- Make sure that you look at the language used in the deed itself. Moreover, a grant deed grants both the grantor’s existing interest in the property and any after-acquired interest. Rather, a grantee in a quitclaim deed takes title to the property subject to all defects in the title and all equities against the grantor that existed at the time of the transfer. Understanding The Quitclaim Deed Both of these legal instruments are commonly used in California. John needs to take further action to remove Mary’s ownership. Quitclaim deeds are used to convey any interest that the grantor might possess in the property. Quitclaim Deeds contain no guarantees of any kind, which means that you could buy a property, receive a Quitclaim Deed, and later find out that the person you bought it from wasn't legally able to sell you the property at all. When to Use an Interspousal Transfer Deed vs. Quit Claim Deed Interspousal transfer deeds can be used to avoid tax liability when transferring property. In this deed, the property in collateral would be the very property that is being paid for. Often, a more firm and declaration of ownership is needed, as is the case with a grant deed. It must identify the property being transferred and say what the grantor receives in return for it. 2) The Quitclaim Deed. In contrast, a quitclaim deed does not contain any guarantee against future ownership claims. A quitclaim deed is a legal instrument that is used to transfer interest in real property.The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee. A full consultation with a qualified real estate attorney would be necessary to properly advise you. A common question from potential clients is what the differences between grant deeds and quitclaim deeds happen to be. It assures that the payments made by the buyer would automatically be transferred to the lender, or in the instance that the buyer cannot pay the dues any longer, a stipulated amount of interest would be owed. Unlike grant deeds, quitclaims make no guarantee against future ownership claims. The grantor might be a legal owner—or not. It must include the names of the grantor and grantee -- the property owner and the new owner. Grant Deed Vs. Quitclaim Deed Transferring residence does not need to have to be a prolonged and concerned approach. Both deeds effectively transfer title; however, there are some significant differences between these two types of deeds. © 2020 Copyright Schorr Law. This type of deed is most often used in divorces or when one spouse comes into a … Contact us today for a free consultation. There is a legal difference between the two types of deeds. On the other hand, when using a Quitclaim Deed you will notice right off that in the language of the form, the word “grant” is substituted for the word “quitclaim” or the words “remise, release and quitclaim”. Property can be transferred by a quitclaim deed whether or not a payment is received. Grant deeds … Quitclaim deeds are most often used when there is no sale—to transfer property between friends, partners, or family members, or between owners and their LLCs. The Grant Deed form is a document that allows a person to transfer real estate the person owns to another person. The quitclaim’s only promise, or covenant, is that if the grantor had an interest in the land, that interest is transferred to the grantee. Consideration of the implied covenants can allow the grantor to determine whether there is any risk in signing a Grant Deed, and allow them to consider allowing language carving out exceptions to the covenants. However, this information is only for general guidance. If you are in a situation where you have bought a home that does not have marketable title, we can help you. Quitclaims simply state that a prior joint owner gives up all future rights, benefits and interests in … A quitclaim deed only conveys whatever interest the grantor may have or may not have. Quitclaim deeds are used to convey any interest that the grantor might possess in the property. Grant Deed vs Deed of Trust However, the fundamental difference between the two is that a grant deed conveys the property interest the grantor has in the property, but also warrants that the grantor actually owns the property and the new owner will not be liable for any unknown ownership claims. Grant deeds and trust deeds (also called deeds of trust) are both used in real-estate transactions to convey ownership. Deeds executed by agents of the court, such as a receiver or sheriff, to transfer title under a judicial foreclosure sale, an execution sale or other court-ordered sale are similar to quitclaim deeds in that none of these carry with them the implied covenants of a grant deed. A grant deed, on the other hand, will not necessarily provide for proof of ownership. Diverse varieties of deeds transfer home in Diverse approaches, underneath Distinct situations. A grant deed offers more protection to a buyer than a quitclaim deed, but less protection than a warranty deed. The two most common types of deeds are grant deeds and quitclaim deeds. Unlike a warranty deed, the quitclaim grants whatever interest a person has to the other person, but offers no assurances that the title is clear. In a grant deed, the grantor (the person selling or transferring the property away) states the property has not been sold to anyone else and that the property title is not challenged or otherwise encumbered (except to the extent already disclosed). Thus, the grantee (new owner) can be protected that the property he or she just purchased does actually contain a marketable title. Unlike a grant deed, a quitclaim deed does not carry with it the implied covenants contained in a grant deed. Information on this site and your receipt or use of it (1) does not create an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Our founder, Mr. Sagar Parikh, is uniquely qualified. The term “grant” is one of the key words in the deed that distinguishes a grant deed from a quitclaim deed. Moreover, a quitclaim deed will not transfer any title acquired by the grantor after the time of transfer. The one to use in your situation depends on specific facts and circumstances. Using the same example as above, if the grantor jointly owns a property with a cotenant and purports to transfer the entire property to the grantee even though he does not own the entire property, even if the grantor obtains his cotenant’s interest after the grantor signed the quitclaim deed, the cotenant’s 50% will not transfer to the grantee. Quitclaims are often used in divorce situations to deed a marital property from one spouse to another. There is no implied warranty contained in a quitclaim deed stating whether there may be unknown ownership claims and whether the grantor even owns the rights to the property conveyed. The main difference between a warranty deed and a grant deed is that in a warranty deed, the grantor will warrant and defend the title against the claims of all persons. Grantees always want Grant Deeds, while Grantors may prefer to Quitclaim. It essentially depends on the verbiage used inside the terms of the Deed itself. Without a doubt, it can be performed fairly basically and quickly. In Illinois, any type of deed needs four things to be legal. Such encumbrances include taxes, assessments, and liens but excludes any physical encumbrances that the grantee can see on the property. There are three types of title deeds you might encounter in a San Francisco real estate transaction. In San Francisco, deeds are recorded with the city’s office of the assessor-recorder:. In California, there are 3 frequent deeds: grants deeds, quitclaim deeds and deeds of rely on. That’s a big “if.” Both grant deeds and quitclaim deeds convey ownership in a piece of property to another person. How Mistakes on a Deed Can Impact Chain of Title. Let’s see how these two methods might apply in this situation: Grant Deed. A quitclaim deed terminates any interest in the real estate described in the deed which may be held by the grantor. Quitclaim Deeds. See related: How Mistakes on a Deed Can Impact Chain of Title, 1901 Avenue of The Stars Suite 615 Los Angeles, California 90067 Telephone: (310) 954-1877 Text: (323) 487-7533 Email: info@schorr-law.com. The deed makes no promises in that regard. Grant deeds warranty that the seller is conveying the property with “marketable title,” meaning title that is free and clear of other claims or encumbrances. It only conveys the interest that the seller has, as is, regardless of unknown ownership claims. Quitclaim Deed This blog will provide general information about which may suit your needs.