What is the difference between a warranty deed and a quitclaim deed?

A warranty deed is characterized by its provision of guarantees from the grantor regarding the title of the property. This means that the grantor assures the grantee that they hold clear title to the property and have the right to transfer that title, protecting the grantee against any future claims or disputes regarding ownership. In contrast, a quitclaim deed serves a very different purpose; it simply conveys whatever interest the grantor may have in the property, without any warranties or assurances about the state of the title. This means that if the grantor does not actually own the property or if there are liens against it, the grantee has no recourse against the grantor.

The distinction is crucial in real estate transactions, as a warranty deed offers more security and assurance to the buyer, making it the preferred choice in most situations where clear title is essential. The quitclaim deed, however, is often used in specific circumstances, such as transferring property between family members or clearing up title issues when the parties are aware of the limitations of the grantor's interest. This difference underscores the importance of understanding the implications of each type of deed in property transactions.