Quitclaim Deeds
Andrew David Easler, Esq.
Published
Updated
What Are the Risks for Buyers When Accepting a Quitclaim Deed?
The main risk is no title warranties. The grantor does not promise ownership or a lien-free title, so existing liens stay with the property and resale or financing can be harder.
The main disadvantage for a buyer who receives a quitclaim deed is the lack of title warranties. A quitclaim deed does not promise that the grantor owns the property or that it is free of liens. Here are the main risks:
No Title Assurance:
No warranties: the grantor transfers only whatever interest the grantor has, without promising the title is free of defects.
Liens and encumbrances: unpaid property taxes, mortgages, and other liens stay with the property.
Title Insurance Questions:
Underwriting: a title insurer looks at the full title history. A buyer can often still get a policy if the search shows good title, but some insurers ask more questions when the seller gives only a quitclaim deed.
Without a policy: a buyer without title insurance has no protection if a title claim appears later.
Resale and Financing:
Resale: a property bought by quitclaim deed can be harder to resell if the title has questions.
Financing: lenders require clear title and a lender's title policy, which can be harder to get when the title history is unclear.
Due Diligence:
Title search: a buyer should order a title search before accepting a quitclaim deed in any sale.
Legal review: an attorney can review the search and explain the risks.
Disclaimer: This content is for informational purposes only and is not legal advice. No warranties on completeness, accuracy, or suitability. Always consult an attorney for personal guidance.
Related Quitclaim Deeds FAQs
- What Is a Quitclaim Deed?
- What Is the Purpose of a Quitclaim Deed?
- When Should a Quitclaim Deed Be Used in Florida?
- Who Benefits the Most From a Quitclaim Deed?
- Who Can Prepare a Quitclaim Deed in Florida?
- Are Doc Stamps Paid on a Quit Claim Deed in Florida?
- Are Quitclaim Deeds Reported to the IRS?
- Are Taxes Due on a Quitclaim Deed in Florida?