How a warranty deed works
Warranty deeds guarantee that there are no other claims or liens on a property.
A warranty deed is a legally binding document that’s used to formally transfer ownership of a specific property. It offers buyers and sellers the highest level of protection during real estate transactions. It ensures that the seller owns the property without any outstanding liens and that the property can be successfully transferred to another owner.
If you’re using a mortgage to buy your home, you can expect your mortgage lender to require a warranty deed.
How a quitclaim deed works
Quitclaim deeds do not guarantee that the title is valid or free of issues.
A quitclaim deed is a legal document that’s used to transfer a property’s ownership from one party, called the grantor, to another party, called the grantee. With this type of deed, the grantor quits their claim to the property without guaranteeing that the title is valid.
Quitclaim deeds are generally used among family members to facilitate a quick transfer of property in cases where money doesn't change hands. They’re generally quick, convenient and usually not problematic when used in the right circumstances and there are no questions regarding who has ownership of the property.
Aside from family situations, you may encounter a quitclaim deed if you purchase a home in foreclosure, said David Reischer, real estate attorney and CEO of LegalAdvice.com.
“It is not uncommon when a buyer purchases a property at a foreclosure sale to obtain a quitclaim deed that then requires hiring a real estate attorney to investigate the chain of title and extinguish any outstanding interests or defects,” Reischer said.
Warranty deeds vs. quitclaim deeds: similarities and differences
Both warranty deeds and quitclaim deeds are legal deeds, but there are some key differences.
Protection level
A warranty deed offers the buyer a much higher level of protection than a quitclaim deed. Only a warranty deed guarantees that the seller has the full right to transfer ownership without any liens or judgments.
Quitclaim deeds don’t provide legal guarantees that the title being transferred is free and clear of any judgments or liens. If there is a judgment or a lien, another party has an ownership claim on the property that could cause the grantee major problems.
Usage
Warranty deeds are more common than quitclaim deeds since they provide more protection. And if a buyer intends to get a mortgage to purchase a property, the lender will almost always require that a warranty deed be used to transfer ownership, and it’ll probably also require a title search and the purchase of title insurance.
Quitclaim deeds tend to be more common if the property is a gift, part of an inheritance or claimed in a divorce, or when a family member’s name is added to or from a title.
The issues with quitclaim deeds
It’s generally safer to get a warranty deed instead of a quitclaim deed due to the issues that can pop up with the latter.
Inherited properties
David Reischer said title issues sometimes arise on properties inherited from aging family members.
“Mechanic’s liens, judgments or other types of secured obligation are sometimes forgotten about when people advance in age and the grantor may genuinely be ignorant of the defects surrounding the transfer of the property,” Reischer said.
If you’re receiving property transferred via a quitclaim deed, Reischer suggested conducting a title search, which is a thorough review of public documents, to see if there are any potential issues with liens or encumbrances.
Not accepted by lenders
While a quitclaim deed is a legal document, it’s generally not acceptable to a mortgage lender.
For instance, Amy, a reviewer in Massachusetts, ran into problems with a quitclaim deed while trying to modify a mortgage after filing for bankruptcy. According to Amy, the lender said: “The quitclaim deed your ex signed isn't good enough, we need a written statement from him[.]”
Scam potential
Quitclaim deed scams are fairly common, according to the Boston division of the Federal Bureau of Investigation (FBI). Some typical scams include transfers for abandoned properties, vacant lots or deceased individuals. It’s a good idea to conduct regular online property searches or set property alerts to avoid becoming a victim of a quitclaim deed scam.
» RELATED: Types of mortgage fraud: how to spot and prevent scams
FAQ
Can you convert a quitclaim deed into a warranty deed?
You can convert a quitclaim deed into a warranty deed, but the process will vary depending on your state.
“Most states provide relief via an 'Action To Quiet Title' or similarly named judicial mechanism that would enable a person to convert a quitclaim deed into a warranty deed,” David Reischer said.
How are quitclaim deeds used in divorce?
A quitclaim deed may be used to remove a spouse’s name from the title in the event of a separation or a divorce agreement. The quitclaim deed will allow one party to be the sole owner of the property so they can sell it or obtain a mortgage for it without the other party’s permission or consent.
Who benefits the most from a warranty deed?
While a warranty deed can protect both buyers and sellers, it tends to benefit buyers more since the seller is guaranteeing that there are no other claims or liens on the property.
Bottom line
A quitclaim deed allows parties with mutual trust, such as family members, to transfer a property’s ownership rights from one person to another. However, a quitclaim deed doesn’t guarantee there are no title defects or other ownership claims on the property. So, if you plan to receive property this way, you may want to consider hiring an attorney or a company to conduct a title search before you sign a quitclaim deed.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Federal Bureau of Investigation, “FBI Boston Warns Quit Claim Deed Fraud is on the Rise.” Accessed Jan. 30, 2026.
- Federal Housing Finance Agency, “Fraud Prevention.” Accessed Jan. 30, 2026.
