A quitclaim deed is a legal instrument by which the owner of a piece of real property, called the grantor, transfers his or her interest to a recipient, called the grantee. The owner/grantor terminates (“quits”) his or her right and claim to the property, thereby allowing claim to transfer to the recipient/grantee. Unlike most other property deeds, a quitclaim deed contains no title covenant and thus, offers the grantee no warranty as to the status of the property title; the grantee is entitled only to whatever interest he grantor actually possesses at the time the transfer occurs.This means that the grantor does not guarantee that he or she actually owns the property at the time of the transfer, or if he or she does own it, that the title is free and clear.
It is therefore possible for a grantee to receive no actual interest, and – because a quitclaim deed offers no warranty – have no legal recourse to recover their losses. Further, if the grantor should acquire the property at a later date, the grantee is not entitled to take possession, because the grantee an only receive the interest the grantor held at the time the transfer occurred.In contrast, other deeds often used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain warranties from the grantor to the grantee that the title is clear and/or that the grantor has not placed any encumbrance against the title.
Because of this lack of warranty, quitclaim deeds are most often used to transfer property between family members, as gifts, placing personal property into a business entity (and vice-versa) or in other special or unique circumstances.Quitclaim deeds are rarely used to transfer property from seller to buyer in a traditional property sale; in most cases, the grantor and grantee have an existing relationship or is the same person. A deed conveying only the right, title, and interest of the grantor in the property described, as distinguished from a deed conveying the property itself. (Macadam 882) Macadam, T.. Law, Business and Society, 10th Edition.
McGraw-Hill Learning Solutions, 40848. 2. What would be the difference if Grandma had given you a fee simple?An estate in fee simple denotes the maximum ownership in land that can be sagely granted; it is the greatest possible aggregate of rights, powers, privileges and immunities available in land. The three hallmarks of the fee simple estate are that it is alienable, advisable and discernible. Creation and characteristic of fee simple. Rules requiring words of general inheritance to create fee simple by conveyance have been abolished by statute in the United States.
To convey an estate in fee simple at common law, the deed or will must state “to B and his heirs. ” Anything short of those words transferred a smaller estate.