KEY DIFFERENCES IN QUIT CLAIM AND
WARRANTY DEEDS
Quit Claim Deeds are commonly used:
Between family members or when there is an existing level of trust.
During a divorce, one spouse must transfer their interest in the
marital home to the other spouse as part of the property settlement.
Quit Claim Deed in Divorce
A Quit Claim Deed is commonly used in divorce cases because it allows
one spouse to quickly and efficiently transfer their interest in the marital
home to the other spouse, often without involving a formal sale. This is
typically done as part of the divorce settlement, where one party may
agree to relinquish their interest in the property in exchange for other
assets or considerations.
For example, if the wife is awarded the marital home in the divorce,
the husband may execute a Quit Claim Deed to transfer his ownership
interest to her. This allows the wife to become the sole owner of the
property, and the husband is effectively removed from the title.
However, it’s important to note that while a Quit Claim Deed
transfers ownership, it does not relieve the grantor of any mortgage
obligations. If both spouses' names are on the mortgage, they will
remain liable for the debt unless the mortgage is refinanced in the sole
name of the remaining owner. This is a crucial point to consider, as
failing to refinance could result in both parties being responsible for
the mortgage, even though only one owns the property.
06 DIVORCE REAL ESTATE & MORTGAGE JOURNAL
THE EMOTIONAL
TIES TO THE
FAMILY HOME
OFTEN RUN
DEEPER THAN
ITS WALLS.
But during divorce,
separating from the
home can be as
challenging as
separating from the
relationship itself.
Warranty Deed Explained
A Warranty Deed, in contrast, provides greater protection to the buyer or recipient of the property. When a
property is transferred via a Warranty Deed, the grantor makes several guarantees, including a clear and
valid title to the property, no liens or encumbrances (unless specified), and the right to transfer ownership.
In effect, the grantor warrants that the property title is free from any defects that could impact the new
owner. If there are issues with the title, the grantee may have legal recourse to recover damages from the
grantor.
Warranty Deeds are typically used in:
Traditional real estate transactions between a buyer and a seller who may not know each other well.
Situations where the buyer needs assurance about the quality of the title to secure financing.