Quitclaim Deed Case Study

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Limitations With Quitclaim Deeds Quitclaim deeds are typically used when property is transferred between family members or transferred without the involvement of money, meaning not sold. Quitclaim deeds are transfers without any warranty to what is owned. There is no legal recourse if there are title problems or disputes, such as a forgotten lienholder. It offers a lower level of protection than the warranty deed.

If Dr. Patel takes the mortgage for the loan, there is no guarantee he could take the land if payment of the loan is not made because there is no covenant of title. If a forgotten lienholder suddenly appears, Dr. Patel would have no legal authority to take the land from the lienholder. The same goes if there was judgments against the land that grandma had forgotten...

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The quitclaim deed only gives the interest that grandma had in the property without any warranty. It does not give you the authority to sell the land or to convey the same right to another party, such as Dr. Patel.
If there was water rights on the land, such as rivers or lakes, the quitclaim deed does not specify exactly who owns the rights. With no rights specified, there are no rights given to sell or convey the land to another party. It only gives what interest the grantor has in the land. It would be giving Dr. Patel the interest in the land without fully knowing what that interest is.

On the other hand, if grandma had given you the land with a warranty deed, it would give you full protection with full rights to sell the land or transfer…

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