What is a Quit Claim Deed? How is it different from a Warranty Deed?
When a Seller gives a Buyer a Warranty Deed, the Seller is “warranting” that the Seller is the owner of the property, and that no one has any interests in the property other than as disclosed in the deed and/or agreed upon by contract. If, after closing, the Buyer discovers an unreleased lien or another party claiming an interest in the property, the Buyer could bring an action against the Seller based upon a breach of the warranty of title. A quit claim deed has no warranty of title. The Seller is only purporting to convey to the Buyer whatever interest the Seller may have in the property. There is no guaranty that the property is not encumbered or liened, or that the seller has any marketable interest at all. That is one reason title insurance is so important.
