Two things that are often confused with one another when discussing the sale of a home are a warranty deed and a quit claim deed. While it may seem that these documents serve the same basic purpose, in reality they are quite different from each other.

What are Warranty Deeds, and What do they do Exactly?

A warranty deed is a guarantee provided by the person selling the property to the buyer that he or she in fact owns the property outright.

The presence of a warranty deed at the time of sale can reassure the buyer that there won’t be any surprise claims against the property at a later date, and also provides him or her with legal protection should a future claim arise. The warranty deed would allow him or her to transfer the future claim back to the seller, making the seller liable for any debts.

Warranty deeds are the preferred method used in most property sales, as they provide assurance and protection to the buyer.

What are Quit Claim Deeds, and What do They do Exactly?

Quit claim deeds are another story entirely. They are used by a person or persons who may not exactly own the piece of property in question outright. This can happen in cases of an inherited piece of property or property that is jointly held by a couple in the middle of divorce proceedings.

While quit claim deeds are exactly what they say they are, in effect the seller relinquishing any future claims on the property in question, they don’t guarantee that there aren’t any other claims against it. For instance, in the case of an inheritance a sibling or other family member may make a claim against the property at a later date, and in the case of a divorce the spouse of the seller may do so as well.

Avoid Quit Claim Deeds in Favor of Warranty Deeds

Of the two, a warranty deed is the preferred method of guaranteeing that there will not be future claims against the property in question. In the end, what may seem like a great deal on a piece of property that only comes with a quit claim deed may end up being more expensive than a less attractive deal that comes with a warranty deed.