A warranty deed, on the other hand, guarantees that the person transferring their ownership in the property owns it and that no one else holds a claim to it. Warranty deeds are generally used when you buy real estate from a stranger and often require a title insurance policy to issue.
Quitclaim deed uses
The "if any" ownership clause may make it seem like a quitclaim deed is a useless piece of history, but the truth is that they're still utilized plenty. When you know the owner of the property well, a quitclaim deed is generally not an issue. Common uses for quitclaim deeds include:
- Removing a former spouse from a family home post-divorce
- Adding a new spouse to a property's title
- Gifting real estate to a child or other family member
- Transferring property to a living trust
- Fixing minor errors on existing titles
- Cleaning up title clouds
In each of these situations, the transactions are between trusted parties whose history of the real estate is known, so title insurance is unnecessary, and a warranty deed is often overkill.