Quit claim deeds are frequently used for transferring property between family members, spouses, or trusted individuals due to their perceived convenience. However, this convenience comes without legal protection, as these deeds simply transfer whatever ownership interest the grantor holds without guaranteeing a valid title or a property free of liens. According to the American Land Title Association (ALTA), title defects affect approximately 25% of residential real estate transactions, highlighting the significant risk of using an unwarranted deed transfer.
A primary risk of quit claim deeds is that they offer no warranties of ownership. If the person transferring the property does not legally own it—or owns only a portion—the recipient receives exactly that interest and nothing more. This lack of protection makes these deeds poorly suited for transactions involving parties who are not well-known or trusted. Furthermore, quit claim deeds do not clear liens, unpaid taxes, judgments, or other encumbrances. A 2023 study by ATTOM Data Solutions found that over 7% of U.S. properties carry unresolved liens, many of which property owners are unaware of. When someone accepts a property through a quit claim deed, they inherit all those unresolved issues without legal recourse.
Financial institutions typically require title insurance and a warranty deed before approving a mortgage, making quit claim deeds unsuitable for traditional buyer-seller transactions. Lenders often reject them due to the lack of assurance they provide. Buyers who later attempt to resell a property may face obstacles if the title trail is unclear. These deeds should not be used for standard real estate purchases between unrelated parties, where warranty deeds or special warranty deeds are more appropriate as they provide legal guarantees of clear and marketable title.
Properties with complicated ownership histories—involving multiple heirs, trusts, previous divorces, or unclear title history—are particularly risky for quit claim deed transfers, as they may transfer unresolved disputes. These situations often require legal due diligence and a formal title search before any transfer occurs. Another common misconception is that transferring ownership via a quit claim deed removes the original borrower from the mortgage. It does not. The original borrower remains responsible for loan repayment regardless of whose name is on the title, which can lead to major financial and legal complications.
People sometimes attempt to use quit claim deeds as shortcuts to bypass probate or speed up inheritance transfers, but these documents can create tax issues, trigger Medicaid penalties, or conflict with estate plans. Professional guidance is essential before using a quit claim deed for estate purposes. One of the most frequent misconceptions is that a quit claim deed "clears" ownership, when it only passes on the exact interest the grantor holds. Consumers often skip title searches, assuming the process is simple, which can lead to unknowingly accepting tax liens, improper legal descriptions, or unresolved ownership claims. These issues often remain undiscovered until the owner attempts to refinance or sell.
Because the risks are significant, consulting a professional is often the safest path. A knowledgeable real estate deed lawyer can conduct a proper title search, identify liens, encumbrances, and disputes, advise whether a quit claim deed is appropriate, prepare alternative deed types that offer more protection, and ensure all legal formalities are correctly handled. Affordable Legal Services LLC offers flat-fee, accessible support to help property owners make informed decisions that protect their long-term interests. Quit claim deeds can be safely used in limited situations, such as property transfers between trusted family members, but they are not appropriate for most real estate sales, transactions involving lenders, or cases with unclear ownership histories.
