Deeds all look similar and do very different things. The difference is not the paper, it is how much the person handing over the property is promising about what they are handing over. Choose the wrong one and a buyer can end up owning a problem with no recourse.
The short version
A warranty deed comes with promises. The grantor guarantees they own the property, that the title is clear, and that they will defend the new owner against claims that arise later, including claims from before they owned it.
A quitclaim deed comes with no promises at all. It transfers whatever interest the grantor happens to have. If that turns out to be full ownership, the new owner gets full ownership. If it turns out to be nothing, the new owner gets nothing, and has no claim against the person who signed.
Everything else follows from that one difference.
What a warranty deed actually promises
A full or general warranty deed traditionally carries a set of covenants. The grantor warrants that they hold the title and have the right to convey it, that the property is free of undisclosed encumbrances, that the new owner will not be disturbed by someone with a better claim, and that the grantor will defend the title and fix any defect that surfaces.
Critically, those promises reach back through the entire history of the property, not just the years the grantor owned it. That is why buyers in arm’s length sales want one.
A special or limited warranty deed narrows that. The grantor promises only that they personally did nothing to cloud the title while they owned it. Anything from before their ownership is not covered.
What a quitclaim deed does and does not do
A quitclaim releases whatever claim the grantor has. It is fast, simple, and appropriate when the parties already know the title situation and trust each other.
Typical uses are adding a spouse after marriage, removing one after divorce, transferring between family members, moving a property into a living trust or an LLC, and clearing up a technical defect such as a misspelled name on an earlier deed.
What it is not appropriate for is buying property from someone you do not know. A quitclaim from a stranger tells you nothing about whether they own what they are selling.
A note if your property is in New York
New York adds a middle option that most states do not use as heavily. Downstate transactions are usually done on a bargain and sale deed with covenant against grantor’s acts, which sits between a warranty deed and a quitclaim. If your property is in New York, that changes which deed you should actually be asking for, and we cover the whole decision in which deed to use in New York.
Choosing by situation
| Situation | Usually used |
|---|---|
| Open market sale to a buyer you do not know | Warranty, or bargain and sale with covenants in NYC |
| Adding or removing a spouse | Quitclaim |
| Divorce settlement transfer | Quitclaim |
| Moving property into a trust or LLC | Quitclaim or bargain and sale |
| Estate or foreclosure sale | Bargain and sale |
| Fixing a name or typo on a prior deed | Correction or quitclaim deed |
The mistake that costs people the most
A deed transfers ownership. It does not transfer the mortgage.
If you quitclaim your interest to an ex-spouse in a divorce, and your name is still on the loan, you are still liable for that loan. You have given away the asset and kept the debt. The lender was not a party to your deed and is not bound by it. Removing yourself from a mortgage requires a refinance or a formal release from the lender.
Most mortgages also contain a due on sale clause that lets the lender demand full repayment if the property is transferred. Some transfers, such as into a revocable trust for your own benefit or to a spouse, are protected by federal law, but many are not. Ask before you record.
Taxes and forms, which surprise people
A transfer between family members for no money is not automatically tax free. Most states impose a real estate transfer tax, and many require additional forms even when the consideration is zero. New York has its own set, covered in the New York guide.
Adding someone to a deed can also count as a gift for federal gift tax purposes, and it can change the capital gains basis the recipient inherits. Someone who inherits property receives a stepped up basis. Someone gifted property during your lifetime generally does not, which can mean a far larger tax bill when they sell.
This is exactly the kind of decision to run past an attorney or accountant before signing, not after recording.
Both must be notarized, and then recorded
Whichever deed you use, the grantor’s signature must be acknowledged before a notary public before the county will record it. An unrecorded deed can still be valid between the parties, but it does not protect the new owner against later claims, and it will not show up when anyone searches the title.
In New York City, deeds are recorded through ACRIS, and we handle deed and document recording from intake through confirmation. Recording also triggers a notice under the City’s deed fraud program, which is one of the reasons every owner should enroll in the Recorded Document Notification Program.
Frequently asked questions
Is a quitclaim deed legally valid?
Yes. It is a real transfer of whatever interest the grantor holds. Its weakness is the absence of promises, not the absence of legal effect.
Can I use a quitclaim to sell my house?
You can, but almost no buyer or lender will accept it, and title insurance may be difficult to obtain.
Does a quitclaim remove someone from the mortgage?
No. Only the lender can do that, through a refinance or a written release.
Can a deed be notarized online?
Often yes, but the receiving county recorder decides whether it accepts an electronically notarized deed. Confirm with them before your session.
What if the name on the old deed does not match my ID?
That is a separate and common problem. See what title companies ask for.
What happens if a covenant is breached
A promise is only useful if you know how to enforce it, and the answer is less comforting than people expect.
Enforcing a warranty means suing the person who conveyed the property to you. Depending on which covenant was broken, the clock may have started running the day the deed was delivered, even though you did not discover the problem until years later. And the person you are suing may have moved out of state, spent the proceeds, dissolved the entity that sold to you, or died.
You would also be funding your own legal costs while you find out. That is why lenders require title insurance regardless of what the deed promises, and why buyers should carry an owner’s policy even when handed the strongest deed available. The deed gives you somebody to sue. The policy gives you somebody who pays.
Deeds that name a role rather than a person
You will also meet deeds named after the capacity of the signer rather than the promises made. An executor’s deed conveys from an estate. A referee’s deed transfers after a foreclosure sale. A trustee’s deed conveys from a trust.
These are usually bargain and sale in substance, carrying limited or no warranties, because the person signing is acting in a role and has no personal knowledge of the property’s history. If you are buying through one of these, the deed is telling you plainly that due diligence is on you.
Related reading
- What is a general warranty deed?
- How to read a deed
- How to transfer a deed in NYC
- Your name does not match the deed
- NYC deed and document recording
This is general information, not legal or tax advice, and NotarEaseNYC is not a law firm. A notary public cannot choose a deed for you or explain its legal effect. Speak with a real estate attorney before transferring property.