What is the difference between quit claim and warranty deeds?

On Behalf of | Oct 25, 2021 | Real Estate |

When people purchase homes or other property it can be an exciting time. People may be buying their first home, their new forever home, a vacation home, property for hunting or other recreational purposes and other reasons as well. Before they purchase these various properties, they will probably conduct a search to ensure that they are purchasing the right property for their needs. Once they have found the property that they want, they will begin the purchasing process.

This starts with making an offer to the seller. There may be some negotiation and offers that are made back and forth between the two parties before they eventually reach an agreement on the purchase price and any work that needs to be done before the sale is finalized at the closing. However, even after the purchase, the title to the property does not transfer until the deed to the property is signed and recorded with the county the property is located in.

Guarantees offered by quit claim and warranty deeds

There are different deeds that people can sign to transfer property. Two of the more common options for deeds are warranty deeds and quit claim deeds. It is important to understand the differences because while they both transfer title of property, they provide the buyer different assurances about the property they are purchasing.

Quit claim deeds transfer the property without any warranties. This would occur if people are trying to make a quick purchase and are purchasing the property “as is” or making the transfer between family members. Warranty deeds on the other hand guarantee that the title is valid and if there are any issues with the marketability of the title, the buyer could hold the seller liable for any damages they suffer.

When people buy property in Tennessee, they are usually focused on other aspects of the property and not the title itself. It is important to ensure that they are receiving title free and clear of any claims from anyone else and having the right deed is important to ensure that. Experienced attorneys understand the differences between the deeds and may be able to guide one through the process.