Deed Without Warranty Vs Quitclaim Deed In Middlesex
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It is common for property sales to use a quitclaim deed and protect the buyer through contract law. However, another way to handle this is with a warranty deed.
The key distinctions include: Interest transferred – A quitclaim deed conveys only the grantor's current ownership share, which may be incomplete. A warranty deed transfers the property in its entirety. Warranties and protection – Quitclaim deeds provide zero warranties or protection for the grantee.
Quitclaim Deeds: Quitclaim Deeds are used to transfer property ownership without any warranties regarding the title. This means the grantor isn't guaranteeing anything, even that they own the property, or that the title is clear.
Note that the Grantor may legally prepare his or her own deed, but only an attorney licensed in the State of New Jersey can prepare a deed for someone else. I am often told that the realtor or the title company is going to prepare the deed, but that cannot be true.
Common uses – Typically, quitclaim deeds are used for lower-risk transfers between related parties. In contrast, warranty deeds are used for real estate sales and high-value transactions involving unrelated grantees.
General warranty deeds: A general warranty deed provides the most protection to the buyer but gives the grantor the highest degree of liability. The grantor of a general warranty deed fully warrants good, clear title to the property.
A general warranty deed is the most common type of warranty deed in the United States. It offers the highest level of protection to the buyer because it guarantees that there are absolutely no problems with the home – even dating back to prior property owners.
General warranty deeds give the grantee the most legal protection, while special warranty deeds give the grantee more limited protection. A quitclaim deed gives the grantee the least protection under the law.
