What is a quitclaim deed?
A quitclaim deed transfers whatever interest the signer has in a property, with no promise that the title is clear or that they own anything at all. It is often searched for as a "quick claim deed", but the name comes from quitting a claim, not from speed.
In a little more detail
A warranty deed, the kind used in an ordinary sale, carries a guarantee. The seller promises that they own the property, that the title is clear, and that they will defend it if someone later says otherwise. A quitclaim deed promises none of that. If the signer turns out to own nothing, you receive nothing, and you have no claim against them.
That is why it belongs between people who already trust each other, and why it rarely belongs in a sale between strangers. The usual uses are adding a spouse to a title after a marriage or removing one after a divorce, moving a property into a trust or an LLC you control, and correcting a misspelled name or a bad legal description on an earlier deed.
Moving a rental into an LLC this way is common, but check two things first. Most mortgages carry a due-on-sale clause that a transfer can trigger, and in some states the transfer resets the property tax assessment or attracts a transfer tax.
A quitclaim deed does not move the mortgage. If your name is on the loan, signing the property away leaves you owing the debt without owning the asset, which is the most expensive mistake people make with one.
- Two siblings inherit a rental. One of them wants out, so they sign a quitclaim deed transferring their half to the other.
- They know the title history and they trust each other, so the missing warranty costs nothing. A buyer from outside the family would want a warranty deed and title insurance instead.
Things to watch
- Never accept one in place of a warranty deed in an arm's length purchase.
- It transfers ownership, not the mortgage. The loan stays with whoever signed for it.
- Check the due-on-sale clause and your state's transfer tax before moving a property into an LLC.
Deed, transfer and landlord-tenant requirements differ by state. Start with the official sources for yours.
This is a plain-English explanation, not legal advice. Rules vary by state and city, so check your local law or talk to an attorney before you act on it.
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