If you were to mention some of the known deeds or types of the same, then chances are you will mention a warranty deed and a quit claim deed. However, not all people know what a warranty deed vs. quit claim deed is and the differences between them.
Some of these people do not even know how these kinds of deeds apply and their sudden application areas. Therefore, it is essential only to provide as much information on this topic as possible to allow some of these people to understand better what these terminologies are and in which areas apply.
There will also be other details about this text that you will find helpful in this text and any other purpose of such a kind. Here are some of the differences which exist between a quit claim vs. warranty deed.
What Is A Warranty Deed?
Before looking at what differences exist between a warranty deed vs. a quit claim deed, it is essential to define these two types of deeds. A deed is, first of all, a legal document used to record information regarding the transfer of real estate property from one person to the other.
The deed also has to be prepared and also used regardless of who acquired the property and in which manner. Therefore, a warranty deed is regarded as a legal real estate document that exists between the seller, who is the home buyer, and the grantor, who is the buyer in the case of transfer of property.
Therefore, the warranty deed stipulates that one, after buying a property, reserves all the owner’s rights to the property. As such, the buyer holds the clear title to the land and can choose to sell it whenever they feel they need to.
What Is A Quitclaim deed?
Having looked at what a warranty deed is, it is now time to shift the focus to a quit claim deed and see what it is. This description will assist a lot in helping you distinguish between warranty deed vs. quit claim deed.
A quit claim deed can be best described as a document used to transfer interest in the real estate property world. The entity who is transferring the property, in this case, is referred to as the grantor. Thus, the role of the quit claim deed is used in transferring the interest in a property from a grantor to the recipient.
Warranty Deed Vs. Quit Claim Deed – What are the differences?
Even though there are many similarities between a warranty deed vs. a quit claim deed, there are other differences. For instance, the issue of warranty, protection, reliability, and many other factors play a significant role in distinguishing between a warranty deed and a quit claim deed. Let’s take a look;
1: Warranty Deed Vs. Quit Claim Deed- Difference In Warranties
One of the most significant differences between a quit claim vs. warranty deed is that of the warranty issue. A quit claim deed is only liable to transfer the grantor’s interests in real estate, but it does not come with any warranty on the title. Therefore, whatever part of the real estate the grantor possesses will be transferred to the grantee. On the other hand, a warranty deed comes with a specific warranty that the grantor legally has on the property title.
2: Warranty Deed Vs. Quit Claim Deed- Difference In Protection
The issue of protection is one of the differences which exists between these two types of deeds. When it comes to protection, the quit claim deed offers little or no protection to the grantee. Out of any other protection deed, the quit claim deed provides the least amount of protection. As a result, the grantee will accept the title with zero guarantees if the property has any prior liens or claims against it.
However, a warranty deed comes with the most significant amount of protection to the grantee. This document is proof that the grantor is giving a clean legal title to a property without any previous claims or liens against it. Even if the property has a defect, the grantee can sue the grantor for those damages.
3: Warranty Deed Vs. Quit Claim Deed- Difference In Role
The other difference between a quit claim vs. warranty deed is that of the role played by this document. When a buyer wants to get a mortgage or title insurance financing, he uses a warranty deed because a warranty deed comes with the most excellent form of protection. It even gives the grantor the absolute right to sell the property whenever he wants because this document provides the grantor with the appropriate title.
On the other hand, a quit claim deed document only releases an individual’s interest in a property without mentioning the nature of his interests or rights. Even a quit claim deed document does not come with any protection or warranty. These documents are often used between family members to cure a defect on the title or to transfer ownership without any monetary involvement.
4: Warranty Deed Vs. Quit Claim Deed- Difference In Selling Rights
A quit claim deed is used when there is a transfer of the interest of a property from one person to the other. For instance, it could be that a father is transferring the interest of a property to a son or daughter. So, it does not necessarily include selling rights because when the property ownership is transferred, it does not involve any financial transaction.
However, when comparing warranty deed vs. quit claim deed, you must also understand the selling rights of a warranty deed. A warranty deed transfers the property ownership title legally from one party to another. Therefore, it ensures that the grantee has the selling rights to the property after he acquires its legal rights.
5: Warranty Deed Vs. Quit Claim Deed- Difference In Types Of Property
In many cases, a warranty deed is used to transfer ownership in real estate properties only. In fact, a warranty deed document is only issued when a piece of real estate property is bought or sold. So, this document does not apply to other forms of properties.
On the other hand, a quit claim deed is used in transferring interest in any kind of property. There are no specifications as to what type of property the owner has to possess and transfer to a third party to be eligible to have a warranty deed document. It can either be a real estate property or any other type of property too.
6: Warranty Deed Vs. Quit Claim Deed- Difference In Reliability
The other issue that also brings in some differences between warranty deed vs. quit claim deed is that one of these two documents is more reliable. A warranty deed is without any doubt the most reliable document of these two. Therefore, many people changing ownership of any property choose to work with a warranty deed as they consider it more reliable and assuring.
But, a quit claim deed is not considered entirely reliable because it does not come with a guarantee or does not even come with protection. Therefore, in legal transferring property rights outside the family, the quit claim deed is not considered reliable.
There are many differences between a warranty deed vs. quit claim deed. The text above offers you a glimpse into some of the differences between these two types of deeds. You can refer to the comment section in case you have any questions in this regard.