Grant Deed vs. Quitclaim Deed: What's the Difference?
Understand the key differences between grant deeds and quitclaim deeds, when to use each, and which one best protects your property interests.
Introduction
If you’re transferring ownership of real estate, one of the first decisions you’ll make is which type of deed to use. Two of the most common options are the grant deed and the quitclaim deed. They may look similar on paper, but they offer very different levels of protection to the person receiving the property.
In this guide, we’ll break down how each deed works, when to use them, and what to watch out for before you sign.
What is a Grant Deed?
A grant deed is a legal document that transfers ownership of real property from the seller (the grantor) to the buyer (the grantee), along with two important implied promises:
- The grantor has not already transferred the property to someone else.
- The property is free from any undisclosed encumbrances (such as liens or easements) created by the grantor.
In many states, these implied warranties are built directly into the law, meaning that even if your grant deed doesn’t explicitly list these promises, they are legally assumed. Specific rules and terminology vary by state, so it’s important to check the requirements where the property is located.
Grant deeds are commonly used for arm’s-length residential sales because they give the buyer a reasonable level of protection without the broader guarantees found in a general warranty deed. You can learn more about the different categories of deeds from the Cornell Legal Information Institute’s overview of deeds.
When to Use a Grant Deed
Grant deeds are typically used when:
- You’re selling a home to a buyer you don’t know personally
- You want to assure the buyer there are no hidden title issues you’ve caused
- The transfer is part of a traditional real estate transaction with title insurance
What is a Quitclaim Deed?
A quitclaim deed transfers whatever interest the grantor has in a property — but makes no promises about what that interest actually is. If the grantor doesn’t actually own the property, or only owns a partial share, the grantee receives only what the grantor had, which could be nothing at all.
There are no implied warranties with a quitclaim deed. The Consumer Financial Protection Bureau notes that quitclaim deeds are often used in situations where parties already know and trust each other, because the receiving party has fewer legal protections if something goes wrong (CFPB: Buying a House).
When to Use a Quitclaim Deed
Quitclaim deeds are commonly used for:
- Transfers between spouses, such as adding or removing a spouse after marriage or divorce
- Family transfers, like gifting property to children or placing it into a trust
- Clearing up a title cloud, such as removing a potential claim from an old lien or heir
- Transferring property into an LLC or trust for estate planning
Important: A quitclaim deed does not guarantee that the grantor actually owns the property. If you’re buying from someone you don’t know personally, a quitclaim deed is almost never the right choice.
Grant Deed vs. Quitclaim Deed: Side-by-Side
| Feature | Grant Deed | Quitclaim Deed |
|---|---|---|
| Transfers ownership? | Yes | Yes (whatever the grantor has) |
| Implied warranty of title | Yes | No |
| Protects against undisclosed liens? | Yes (from the grantor) | No |
| Common in traditional home sales? | Yes | No |
| Common in family transfers? | Sometimes | Yes |
| Typically used with title insurance? | Yes | Rarely |
Common Questions
Q: Does a quitclaim deed remove someone from a mortgage? A: No. A deed only affects ownership of the property, not the loan. If the grantor is on the mortgage, they remain responsible for it until the loan is refinanced or paid off.
Q: Do I still need title insurance if I’m receiving a grant deed? A: Yes. A grant deed only protects you from issues caused by the grantor — not problems from prior owners. Title insurance covers a much wider range of risks. You can learn more in our guide to title insurance.
Q: Are there tax consequences to transferring property with either deed? A: Possibly. Property transfers can trigger reassessment for property tax purposes and may have gift or capital gains tax implications. The IRS outlines federal rules in Publication 551: Basis of Assets, and you should also check with your local county assessor for any state or local reassessment rules that may apply.
Recording the Deed
Regardless of which deed you use, the transfer isn’t complete until the deed is properly signed, notarized, and recorded with the county recorder’s office where the property is located. Recording:
- Provides public notice of the new ownership
- Establishes priority against later claims
- Creates the official record used in future title searches
Each county has its own recorder’s or register of deeds office with specific filing requirements, fees, and documentation standards. The National Association of Counties directory can help you locate the correct office for the property’s location.
Practical Example
Maria and her brother inherited their parents’ home together. Maria wanted to buy out her brother’s share so she could live in the house full-time. Because they trusted each other and the transfer was within the family, her brother signed a quitclaim deed transferring his interest to Maria.
A year later, Maria decided to sell the home. Because she was selling to an unrelated buyer in a standard real estate transaction, she used a grant deed — giving the buyer the implied warranties they expected, and pairing it with a title insurance policy for full protection.
Conclusion
Both grant deeds and quitclaim deeds are valid, useful tools — but they are not interchangeable. The right choice depends on your relationship with the other party and how much protection the grantee needs.
Key Takeaways:
- A grant deed includes implied warranties that protect the buyer from hidden problems created by the seller.
- A quitclaim deed transfers only whatever interest the grantor has, with no guarantees.
- Grant deeds are standard for traditional sales; quitclaim deeds are common for family, spousal, and estate-planning transfers.
- Always record your deed with the county to make the transfer official.
Next Steps
- Learn more about different types of property deeds.
- Ready to prepare or record your deed? Get started through our online client portal.
Dependable Title Services is a Registered Legal Document Assistant (LDA #0120034). We prepare and record deeds at the direction of our clients. We are not attorneys and cannot provide legal advice. Laws and recording requirements vary by state and county — if you have questions about the legal implications of a property transfer, please consult a licensed attorney in your jurisdiction.