Warranty Deed vs. Quitclaim Deed: Which Offers the Best Title Protection?
When you are involved in a real estate transaction, the document that bridges the gap between a buyer and a seller is the deed. This legal instrument facilitates the transfer of ownership from the grantor (the current owner) to the grantee (the recipient). However, not all deeds are created equal. The type of deed you choose determines the level of protection you have against future legal claims, undisclosed liens, or ownership disputes.
For any homeowner or investor, understanding the distinction between a General Warranty Deed and a Quitclaim Deed is essential. Choosing the wrong one could leave you vulnerable to significant financial loss or the total loss of your property rights.
The General Warranty Deed: The Gold Standard of Protection
A General Warranty Deed is the most common type of deed used in traditional residential real estate sales. It provides the highest level of protection for the grantee because it includes "covenants of title"—legally binding promises made by the grantor.
The Grantor’s Promises
When a grantor signs a General Warranty Deed, they are making several specific guarantees:
Covenant of Seisin: The grantor promises they actually own the property and have the legal right to sell it.
Covenant Against Encumbrances: The grantor guarantees the property is free from undisclosed liens, mortgages, or easements.
Covenant of Quiet Enjoyment: The grantor ensures the grantee’s possession will not be disturbed by anyone claiming a superior legal title.
Covenant of Further Assurance: The grantor promises to provide any necessary documents in the future to clear the title.
Covenant of Warranty Forever: The grantor agrees to defend the grantee against any third-party claims to the title, even if those claims originated from a time before the grantor owned the property.
Because of these extensive protections, a General Warranty Deed is almost always required by mortgage lenders before they will provide financing.
The Quitclaim Deed: Speed Over Security
In contrast, a Quitclaim Deed offers the least amount of protection to the grantee. It is often referred to as a "non-warranty deed."
When a grantor executes a Quitclaim Deed, they are essentially saying, "I am giving you whatever interest I may have in this property, but I’m not promising that I actually own anything or that the title is clear."
Key Characteristics of a Quitclaim Deed:
No Covenants: The grantor makes no promises about the quality of the title.
No Future Liability: If it turns out the grantor didn't own the property or there are massive tax liens attached to it, the grantee has no legal recourse against the grantor under the deed itself.
Efficiency: Because there is no title search required for the deed to be valid, it is a fast and inexpensive way to move property between trusted parties.
Head-to-Head: When to Use Each Deed
Choosing between these two documents depends entirely on the nature of the relationship between the grantor and the grantee and the level of risk involved.
| Feature | General Warranty Deed | Quitclaim Deed |
| Grantor Liability | High (responsible for past and present) | Low (no ongoing responsibility) |
| Grantee Protection | Maximum (guaranteed clear title) | Minimum (takes property "as-is") |
| Title Search | Essential and expected | Often skipped (not recommended) |
| Common Use Case | Home sales, commercial purchases | Family transfers, divorce, trusts |
| Lender Requirement | Usually mandatory | Rarely accepted for new loans |
Practical Scenarios and Strategic Choices
When a Warranty Deed is Non-Negotiable
If you are buying a home from a stranger or an entity you don't know, a General Warranty Deed is a must. You need the legal assurance that no long-lost heir or unpaid contractor can appear years later to claim an interest in your home. This deed, paired with a comprehensive title insurance policy, creates a "belt and suspenders" approach to asset protection.
When a Quitclaim Deed Makes Sense
Quitclaim deeds are best reserved for "internal" transfers where money isn't changing hands and the parties have a high degree of trust. Common examples include:
Adding a Spouse: Moving a property from sole ownership to joint ownership after marriage.
Divorce Settlements: One spouse "quitting" their interest in the family home to the other.
Estate Planning: Transferring a home into a Living Trust or an LLC owned by the same person.
Clearing "Clouds": If a name was misspelled on a previous deed, a quitclaim deed can be used to correct the record quickly.
The Risk of the "Unknown" Grantee
The biggest danger for a grantee accepting a Quitclaim Deed is the "unknown." If a grantor transfers property via quitclaim and it is later discovered that there is a $50,000 IRS tax lien on the house, that lien remains attached to the property. The grantee is now responsible for that debt if they want to keep the home.
Furthermore, if the grantor didn't actually have a legal right to the property (for example, if they were only a partial heir among many), the grantee may find themselves owning only a fraction of what they thought they purchased—or nothing at all.
Final Recommendations for Property Transfers
Regardless of which deed is used, the legal transfer is only complete once the document is notarized and recorded in the public records of the county where the property is located.
For Buyers: Always insist on a General Warranty Deed. It forces the grantor to be honest about the property’s history and provides a legal safety net.
For Family Transfers: Use a Quitclaim Deed for its simplicity, but only after confirming that there are no outstanding liens that could surprise the new owner.
Always Use Title Insurance: Even with a Warranty Deed, a grantor may not have the financial means to "defend" your title if a lawsuit arises. Title insurance provides the financial backing to handle those legal battles for you.
Understanding the roles of the grantor and grantee within these different deed structures is the best way to ensure your real estate investments are secure for the long term.
The Essential Guide to Grantors and Grantees: Navigating Property Transfers with Confidence