Quitclaim deeds tend to pop up when life changes faster than your mortgage paperwork. Marriage, divorce, inheritance, refinancing, or even fixing a name error on a title can all lead homeowners to ask the same question: Do I need a quitclaim deed?
While they’re common in real estate and mortgage situations, they’re also one of the most misunderstood types of property transfers.
Most people start searching for quitclaim deed information when they’re trying to add or remove someone from a home’s title, transfer ownership within the family, or clean up paperwork before refinancing. It sounds simple, but the details matter, especially when a mortgage is involved.
This guide breaks it all down in plain English. You’ll learn what a quitclaim deed actually does, when it makes sense to use one, how it can affect your mortgage, and what to watch out for before signing anything.
What Is a Quitclaim Deed?
In plain terms, a quitclaim deed lets one person give up (or “quit”) whatever ownership rights they have in a home and transfer those rights to someone else. It’s often used when no money is changing hands and the people involved already know and trust each other.
When a quitclaim deed is signed, the current owner transfers their interest in the property to another person. That interest could be full ownership, partial ownership, or even no real ownership at all. The key thing to understand is that the deed only transfers whatever rights the grantor actually has at the time.
What a quitclaim deed does not do is guarantee that the title is clear. It doesn’t promise there are no liens, disputes, or other claims on the property. There’s no protection for the person receiving the property if a problem shows up later. That’s why quitclaim deeds are usually reserved for low-risk situations, like transfers between spouses or family members.
How Quitclaim Deeds Work
The process of using a quitclaim deed is pretty straightforward, but each step matters.
First, the quitclaim deed form is prepared with details about the property and the people involved. The person giving up their interest is called the grantor, and the person receiving the interest is the grantee. The legal description of the property (not just the address) must be included, along with both parties’ names.
Next, the grantor signs the deed, usually in front of a notary public. Some states require witnesses as well, so local rules matter here. Once the deed is signed and notarized, ownership interest is technically transferred.
The final step is recording the deed with the county recorder or clerk’s office where the property is located. Recording the deed makes the transfer part of the public record and helps protect the grantee’s claim to the property. Until it’s recorded, the transfer may not be recognized by lenders or future buyers.
While quitclaim deeds are simple on paper, they can have lasting legal and mortgage implications. That’s why it’s always smart to understand the process fully or talk to a professional before moving forward.
Quitclaim Deed vs. Warranty Deed
Quitclaim deeds and warranty deeds both transfer ownership of a property, but they do it in very different ways. The biggest difference comes down to protection. A quitclaim deed offers no guarantees about the property’s title, while a warranty deed comes with built-in assurances that the seller actually owns the home and has the right to transfer it.
With a quitclaim deed, the grantor is simply saying, “I’m giving you whatever interest I have, if any.” There’s no promise that the title is clear or that there aren’t other claims on the property. A warranty deed, on the other hand, guarantees that the title is free from liens or ownership disputes and that the grantee will be protected if an issue comes up later.
Because of those guarantees, a warranty deed is usually the better option when buying or selling a home, especially between unrelated parties. It’s the standard choice for traditional real estate transactions and is typically required by lenders because it protects everyone involved.
When Is a Quitclaim Deed Commonly Used?
Quitclaim deeds are most often used in situations where the transfer is low-risk and the people involved already have a relationship or shared history with the property.
One common use is transferring property between family members. This might include parents adding a child to the title, siblings adjusting ownership after inheriting a home, or moving property into or out of a trust. Since these transfers usually aren’t sales, a quitclaim deed keeps things simple.
They’re also frequently used when adding or removing a spouse from a home’s title after marriage or divorce. For example, after a divorce, one spouse may sign a quitclaim deed to give up their ownership interest while the other keeps the home. It’s important to note that this only affects the title unless the loan is refinanced.
Quitclaim deeds also come up in estate planning and inheritance situations. Heirs may use them to transfer ownership after a death, especially when working through an estate or correcting how property was passed down.
Finally, quitclaim deeds are sometimes used to clear up title issues or fix ownership errors. If someone’s name was misspelled, a previous transfer wasn’t recorded correctly, or an owner was accidentally left off the title, a quitclaim deed can help clean up the paperwork without starting over.
In all of these cases, the simplicity of a quitclaim deed is the main advantage, but it only works well when everyone understands the risks involved.
When You Should Not Use a Quitclaim Deed
While quitclaim deeds are useful in certain situations, there are plenty of times when they’re not a good idea. The biggest red flag is when money is changing hands or the people involved don’t already know and trust each other.
If you’re buying or selling a home to an unrelated party, a quitclaim deed is usually the wrong tool for the job. Buyers want assurance that the seller actually owns the property and that there are no hidden title issues. Since a quitclaim deed offers zero guarantees, it leaves the buyer exposed if a lien, ownership dispute, or legal claim pops up later. That’s why traditional home sales almost always use warranty deeds instead.
Quitclaim deeds also aren’t a great choice when there are outstanding liens, unpaid taxes, or unknown claims tied to the property. The deed doesn’t erase those issues. It simply passes them along. If a lien exists, the new owner may become responsible for dealing with it, which can quickly turn into a costly surprise.
From a lender’s perspective, quitclaim deeds are risky too. Lenders want clear, insurable title because the home secures the loan. If ownership is unclear or disputed, it puts their investment at risk. That’s why many lenders are cautious when quitclaim deeds are involved in active mortgages.
How a Quitclaim Deed Affects Your Mortgage
This is where a lot of homeowners get tripped up. A quitclaim deed changes who owns the home, but it does not change who owes the mortgage.
Signing a quitclaim deed does not remove someone from the mortgage. If two people are on the loan and one signs away their ownership interest, both borrowers are still legally responsible for the debt unless the loan is refinanced or paid off. This is a common issue after divorce, where one spouse keeps the home but both names remain on the mortgage.
Lender approval can also come into play. Many mortgages include a due-on-sale clause, which allows the lender to demand full repayment if ownership changes. While lenders often don’t enforce this for transfers between spouses or family members, it’s still something to be aware of, especially if the property transfer wasn’t discussed with the lender first.
In most cases, the mortgage obligation stays exactly the same because the loan contract hasn’t changed. The lender agreed to lend money based on specific borrowers’ credit and income, not just who holds the title. Until the loan is refinanced into a new name or names, everyone originally on the mortgage remains responsible, regardless of what the deed says.
That’s why it’s always smart to think about the mortgage side of things before using a quitclaim deed. What feels like a simple paperwork change can have long-term financial consequences.
Pros and Cons of Quitclaim Deeds
Quitclaim deeds can be very helpful in the right situation, but they’re definitely not one-size-fits-all. Understanding the pros and cons can help you decide whether this type of deed makes sense for your situation or if another option would be safer.
Advantages of Quitclaim Deeds
One of the biggest advantages of a quitclaim deed is how simple and fast it is. There’s no lengthy closing process, no title insurance requirement in many cases, and very little paperwork compared to a traditional real estate sale. Once the deed is signed, notarized, and recorded, the transfer is done.
Quitclaim deeds are also less expensive than other deed types. Because they don’t involve title searches, warranties, or formal closings, costs are usually limited to filing fees and possibly a small legal fee if you choose to get help. This makes them appealing for straightforward ownership changes.
They’re especially useful for non-sale situations. Adding a spouse to the title, removing an ex after a divorce, transferring property to a family member, or correcting a title error are all scenarios where a quitclaim deed can get the job done without unnecessary complexity.
Disadvantages of Quitclaim Deeds
The biggest downside of a quitclaim deed is the lack of ownership guarantees. The person transferring the property isn’t promising that they fully own it or that the title is free and clear. If problems exist, they move right along with the property.
Because of that, quitclaim deeds come with potential title and legal risks. Liens, unpaid taxes, ownership disputes, or recording errors can all surface later, leaving the new owner to sort things out on their own. There’s usually no legal recourse against the grantor if an issue arises.
Finally, quitclaim deeds offer very limited protection for the grantee. The person receiving the property is taking it “as is,” which can be risky if they don’t fully understand the property’s history. This is why quitclaim deeds are rarely used in traditional home purchases and are best reserved for situations where trust and transparency already exist.
In short, quitclaim deeds work best when simplicity matters more than protection, and when everyone involved understands exactly what they’re signing.
How to File a Quitclaim Deed
Filing a quitclaim deed is usually pretty straightforward, but the details matter. Each state and county has its own rules, so it’s important to follow the local requirements to make sure the transfer is legally valid.
To start, you’ll need the correct quitclaim deed form for the state where the property is located. The form typically requires the full legal names of the grantor and grantee, the legal description of the property (not just the street address), and the county where the property is located. Some forms also ask for how the property is being transferred, such as between spouses or family members.
Once the form is completed, the deed must be signed and notarized. The grantor must sign the deed in front of a notary public. Some states also require one or more witnesses, so it’s a good idea to double-check local signing rules before scheduling a notary.
After the deed is signed and notarized, it needs to be recorded with the county recorder, clerk, or register of deeds office. Recording makes the transfer part of the public record and protects the grantee’s ownership claim. Recording fees vary by location and are usually paid at the time of filing. Once recorded, the county will return a stamped copy for your records.
Costs Associated With Quitclaim Deeds
One reason quitclaim deeds are popular is that they’re usually low-cost compared to other property transfers, but there can still be expenses to plan for.
Most of the cost comes from filing and recording fees, which typically range from $20 to a few hundred dollars depending on the county. Some locations charge per page, while others have flat fees.
If you choose to work with an attorney or legal service, costs can vary widely. A simple quitclaim deed prepared by an attorney may cost a few hundred dollars, while more complex situations can cost more. Online legal services are often cheaper but may not be ideal for complicated transfers.
There may also be tax-related costs depending on how the property is transferred. While many family transfers are exempt from certain taxes, others may trigger gift or transfer taxes. These costs aren’t always immediate, but they can show up later if they’re overlooked.
Tax Implications of a Quitclaim Deed
Taxes are often the most overlooked part of using a quitclaim deed, and they’re also the area where surprises tend to happen.
One potential issue is gift tax. If property is transferred without payment or for less than market value, the IRS may consider it a gift. While most people won’t owe gift tax right away due to high lifetime exemptions, the transfer may still need to be reported.
There can also be a capital gains impact down the road. The person receiving the property usually takes on the original owner’s cost basis. If the home is later sold for a profit, that lower basis could mean higher capital gains taxes than expected.
Finally, a quitclaim deed can sometimes trigger property tax reassessment. In some states or counties, changing ownership may cause the property to be reassessed at a higher value, leading to increased property taxes. Some transfers are exempt, but the rules vary widely by location.
Because tax rules can be complex and very location-specific, it’s often worth checking with a tax professional before filing a quitclaim deed, especially if the property has significant value.
Quitclaim Deeds and Refinancing
Quitclaim deeds and refinancing often go hand in hand, especially after major life changes like divorce, marriage, or estate planning, but they don’t always play together seamlessly.
A quitclaim deed can affect refinancing eligibility because lenders want to see clear, undisputed ownership before approving a new loan. If the title was recently changed using a quitclaim deed, the lender may pause the process to make sure there are no ownership issues, liens, or missing parties tied to the property.
This is why lenders typically require a title review during refinancing. Even if the quitclaim deed was done correctly, the lender still needs confirmation that the person applying for the refinance has full legal authority to borrow against the home. Any red flags can delay or derail the refinance until they’re resolved.
Some of the most common refinance scenarios involving quitclaim deeds include removing an ex-spouse from the title after divorce, adding a spouse after marriage, or transferring ownership from an estate before refinancing. In many cases, lenders will require the quitclaim deed to be recorded first, followed by a title search or title insurance policy as part of the refinance process.
Alternatives to a Quitclaim Deed
While quitclaim deeds are convenient, they’re not always the best option. Depending on your situation, one of these alternatives may offer more protection or clarity.
Warranty deeds provide the highest level of protection. The grantor guarantees they legally own the property and that the title is free from liens or claims. This type of deed is commonly used in traditional home sales and is often required by lenders.
Special warranty deeds fall somewhere in the middle. They guarantee that no title issues occurred during the grantor’s ownership period, but they don’t cover problems from earlier owners. These are sometimes used in commercial transactions or certain trust and estate transfers.
Transfer on death deeds (also called beneficiary deeds, where allowed) let a homeowner name a beneficiary who will automatically receive the property upon the owner’s death without going through probate. The owner keeps full control during their lifetime, and the transfer doesn’t happen until death. Availability and rules vary by state, so local laws matter here.
Choosing the right type of deed depends on how much protection you need, who’s involved in the transfer, and whether a mortgage or refinance is part of the picture.
Frequently Asked Questions About Quitclaim Deeds
Is a quitclaim deed legally binding?
Yes, a quitclaim deed is legally binding as long as it’s properly completed, signed, notarized, and recorded according to state and county rules. Once it’s recorded, the transfer becomes part of the public record. That said, “legally binding” doesn’t mean “risk-free”. It just means the transfer itself is valid.
Can a quitclaim deed be reversed?
In most cases, no. Once a quitclaim deed is recorded, it can’t simply be undone. Reversing it usually requires the person who received the property to sign a new deed transferring ownership back. If fraud, coercion, or a serious legal error is involved, a court may step in—but that’s the exception, not the rule.
Does a quitclaim deed override a mortgage?
No. A quitclaim deed has no effect on the mortgage. It only changes who owns the property, not who owes the loan. Anyone listed on the mortgage remains financially responsible until the loan is paid off or refinanced, regardless of what the deed says.
Do both parties need a lawyer?
Not always. Many quitclaim deeds are completed without attorneys, especially for simple family transfers. However, if there’s a mortgage involved, significant property value, tax concerns, or unclear ownership history, consulting a lawyer or title professional can help avoid costly mistakes.
Final Thoughts: Is a Quitclaim Deed Right for You?
Quitclaim deeds can be a helpful tool, but only in the right situations. They work best for low-risk transfers between people who already trust each other and understand the property’s history. They’re not designed to protect buyers, clear debts, or replace proper title insurance.
If you’re a homeowner or borrower, the biggest takeaway is this: a quitclaim deed changes ownership, not financial responsibility. Mortgages, liens, and taxes don’t disappear just because a name comes off the title.
Before moving forward, it’s smart to consult the right professional. A lender can explain how the transfer may affect your mortgage or refinancing options. An attorney or title professional can confirm that the deed is prepared correctly and won’t create problems down the road.
