When property changes hands, the deed determines what's actually being transferred. A quitclaim deed and a warranty deed both move ownership, but they carry very different promises—and protections.
What a quitclaim deed does
A quitclaim deed transfers whatever interest the grantor currently holds in the property, if any, with zero guarantees. The grantor makes no promise that they actually own the property, that the title is clear, or that no one else has a claim. It's essentially "I'm giving you whatever rights I have, but I'm not vouching for anything." If it turns out the grantor owned nothing—or owned only a partial interest—the recipient gets exactly that: nothing, or a partial interest. There's no recourse against the grantor for title defects.
Quitclaim deeds are common in non-sale scenarios: adding a spouse to title after marriage, removing an ex-spouse after divorce, transferring property between family members, or clearing up a cloud on title when someone may have a dormant claim. They're fast, simple, and inexpensive—but they provide no protection.
What a warranty deed guarantees
A warranty deed (or grant deed in some jurisdictions) comes with explicit promises from the grantor. In a general warranty deed, the grantor warrants that they hold clear title, that the property is free from liens or encumbrances (except those disclosed), and that they will defend the title against any third-party claims—even claims arising from prior owners. A special warranty deed limits those promises to the period the grantor owned the property.
If a title defect surfaces later and causes financial harm, the recipient can sue the grantor for breach of warranty. That legal backstop makes warranty deeds the standard in nearly all purchase transactions.
Why lenders and buyers care
Mortgage lenders require warranty deeds. A lender's security interest depends on clear, enforceable title, and a quitclaim deed provides none of the assurances that make the collateral reliable. You won't close a purchase-money mortgage with a quitclaim deed.
Buyers also rely on title insurance, which itself depends on the deed type. Title insurers underwrite policies assuming a warranty deed in arms-length sales. A quitclaim deed raises red flags and may lead to coverage exclusions or a declined policy.
The Alliance take
Use a quitclaim deed when all parties understand there's no guarantee—typically intrafamily transfers or clearing a technical title issue. Use a warranty deed when value is changing hands and the recipient needs assurance of clear ownership. In a financed purchase, you'll use a warranty deed; the lender and the title company will insist on it.
Consult a CPA or attorney; this is not tax or legal advice.
If you're buying or refinancing and have questions about title requirements, start an application and we'll walk you through what's needed for your transaction.