Quitclaim Deeds Explained: What They Are, When to Use Them, and What to Watch Out For

A quitclaim deed is one of the simplest ways to transfer property ownership — and one of the most misunderstood. People use them to add a spouse to a title, transfer property into a trust, or settle ownership after a divorce. But they also carry real risks that can cost you thousands of dollars if you don't understand what you're signing.

This guide breaks down exactly how quitclaim deeds work, when they're the right tool, and when you should use something else entirely.

What Is a Quitclaim Deed?

A quitclaim deed transfers whatever ownership interest one person (the grantor) has in a property to another person (the grantee). That's it. There are no promises about the quality of that interest. The grantor doesn't guarantee they actually own the property, that the title is clean, or that there are no liens against it.

Think of it this way: if a [warranty deed](/blog/how-to-read-property-deed) is like selling a car with a full vehicle history report and guarantee, a quitclaim deed is like saying "here are the keys — I'm not making any promises about what you're getting."

The legal term for these promises is covenants of title. A quitclaim deed contains zero covenants. The grantor is simply releasing whatever claim they may have.

Key Characteristics

• No title guarantees. The grantor makes no warranties about the property's title status.
• No protection against liens. If there's a mortgage, tax lien, or judgment lien on the property, the grantee inherits those problems.
• Immediate transfer. Once signed, notarized, and recorded, the transfer is effective.
• Irrevocable. You can't take it back once it's recorded (with very limited exceptions like fraud).
• No title insurance. Most title companies won't insure a transaction based solely on a quitclaim deed.

How a Quitclaim Deed Works Step by Step

1. Prepare the Deed

Every state has specific formatting requirements. Most quitclaim deeds include:

• Full legal names of the grantor and grantee
• The legal description of the property (not just the street address — you need the metes and bounds or lot/block description from the existing deed)
• The consideration amount (often listed as "$1" or "$10 and other good and valuable consideration" for family transfers)
• The county and state where the property is located
• The grantor's signature

2. Sign and Notarize

The grantor must sign the deed in front of a notary public. Some states (like Florida and Ohio) also require witnesses — typically two. The grantee does not need to sign.

3. Record the Deed

File the signed, notarized deed with the county recorder's office (sometimes called the register of deeds) in the county where the property is located. Recording fees range from $10 to $75 in most counties, though some states charge more. In [California](/blog/california-heloc-guide), the base fee is $15 for the first page plus $3 for each additional page, plus any applicable transfer taxes.

4. Notify Relevant Parties

If there's an existing mortgage, notify the lender. (More on why this matters below.) Update your homeowner's insurance. If the property is in an HOA, notify them of the ownership change.

When Quitclaim Deeds Make Sense

Quitclaim deeds are designed for transfers between people who already know and trust each other. Common situations include:

Transfers Between Spouses

Adding or removing a spouse from a property title is the single most common use of quitclaim deeds. If you buy a house before marriage and want to add your spouse, a quitclaim deed handles this quickly and cheaply. After divorce, a court order typically directs one spouse to sign a quitclaim deed transferring their interest to the other.

Transfers Into a Trust

Moving property into a revocable living trust (for estate planning purposes) is done via quitclaim deed in many states. Since you're transferring the property to a trust you control, the lack of warranties doesn't matter.

Clearing Title Defects

Sometimes a [title search](/blog/title-search-explained) reveals that a former owner, an ex-spouse, or a distant relative has a potential claim to the property. Getting that person to sign a quitclaim deed releases whatever interest they might have, clearing the cloud on the title.

Gifts to Family Members

Parents transferring a vacation home to their children, or siblings settling an inheritance outside of probate, frequently use quitclaim deeds. There's no sale involved, and the parties trust each other.

Transferring Property to an LLC

Real estate investors often move properties from personal ownership into an LLC for liability protection. A quitclaim deed is a standard tool for this.

When NOT to Use a Quitclaim Deed

Buying Property From a Stranger

Never accept a quitclaim deed in a standard real estate purchase. Without title warranties, you have zero recourse if the seller doesn't actually own the property, if there are undisclosed liens, or if someone else has a legitimate claim to the property.

When You Need Title Insurance

Title insurance companies generally won't issue a policy based on a quitclaim deed. If you need title insurance (and you almost always should for a purchase), you need a warranty deed.

When There's an Existing Mortgage

A quitclaim deed transfers ownership, but it does not transfer mortgage responsibility. If you quitclaim your interest in a property to your ex-spouse, your name is still on the mortgage. You're still liable for the payments. The only way to remove yourself from the mortgage is for the other person to refinance.

Worse, most mortgages contain a due-on-sale clause that allows the lender to demand full repayment if ownership is transferred. While lenders rarely enforce this clause for transfers between spouses (especially during divorce), they can and sometimes do enforce it for other transfers.

Quitclaim Deed vs. Warranty Deed

A general warranty deed provides the strongest buyer protection. The grantor guarantees:

1. They own the property and have the right to sell it (covenant of seisin)
2. The property is free from encumbrances except those disclosed (covenant against encumbrances)
3. The grantee will have quiet enjoyment of the property (covenant of quiet enjoyment)
4. The grantor will defend the grantee's title against all claims (covenant of warranty)

A special warranty deed limits those guarantees to the period during which the grantor owned the property. If there's a title defect from before the grantor took ownership, that's not their problem.

Tax Implications of Quitclaim Deeds

Transferring property via quitclaim deed can trigger several tax consequences:

Gift Tax

If you transfer property without receiving fair market value in return, the IRS considers it a gift. In 2026, you can give up to $18,000 per recipient annually without filing a gift tax return (Form 709). Beyond that, you'll need to file a return, though you likely won't owe gift tax unless you've exceeded the lifetime exemption ($13.61 million in 2026).

Property Tax Reassessment

In states like California (under Proposition 19, which modified Proposition 13), transferring property to someone other than a spouse or qualifying child can trigger a full property tax reassessment at current market value. On a home purchased 20 years ago, this could mean property taxes doubling or tripling.

Capital Gains

When you receive property via quitclaim deed, you generally take the grantor's original [cost basis](/blog/real-estate-depreciation-explained) (called a carryover basis). This is different from inherited property, where you get a [stepped-up basis](/blog/selling-inherited-property) to the date-of-death fair market value.

Example: Your parents bought their house for $150,000. They quitclaim it to you when it's worth $500,000. If you sell it for $550,000, your taxable gain is $400,000 ($550K minus $150K basis), not $50,000. Had you inherited the property instead, your basis would have been $500,000, and your taxable gain would only be $50,000.

This difference alone can cost tens of thousands of dollars in capital gains taxes. It's one of the biggest reasons estate planning attorneys advise against quitclaiming property to children during your lifetime.

Transfer Taxes

Some states and counties charge transfer taxes when property changes hands. Rates vary widely. In Pennsylvania, the transfer tax is 2% of the sale price (split between buyer and seller). In most states, transfers between spouses and certain family transfers are exempt.

State-Specific Considerations

Quitclaim deed laws vary significantly by state:

• Texas doesn't technically use the term "quitclaim deed." Instead, Texas uses a "deed without warranties" that functions similarly.
• California requires a Preliminary Change of Ownership Report (PCOR) to be filed with the quitclaim deed, or a $20 penalty applies.
• Florida requires two witnesses in addition to notarization, and charges documentary stamp taxes on transfers (at $0.70 per $100 of consideration in most counties).
• New York charges a real estate transfer tax of $2 per $500 of consideration for properties under $3 million, plus a "mansion tax" of 1% on residential properties over $1 million.
• Michigan requires a Property Transfer Affidavit (Form L-4260) to be filed within 45 days of the transfer.

Always check your state's specific requirements before preparing a quitclaim deed.

How to Reverse a Quitclaim Deed

Generally, you can't. Once a quitclaim deed is signed, notarized, and recorded, the transfer is complete. However, there are limited exceptions:

• Mutual agreement. The grantee can sign a new quitclaim deed transferring the property back.
• Fraud or duress. If you can prove you were tricked or forced into signing, a court may void the deed.
• Lack of capacity. If the grantor was mentally incapacitated at the time of signing, the deed may be voidable.
• Forgery. A forged deed is void from the start.

These cases typically require a lawsuit (a quiet title action), which can cost $5,000 to $25,000+ in attorney fees and take months to resolve.

Common Mistakes to Avoid

1. Using a quitclaim deed to avoid probate without understanding the tax consequences. The carryover basis issue can cost heirs hundreds of thousands in unnecessary capital gains taxes.

2. Forgetting about the mortgage. Transferring title doesn't transfer the loan. You're still on the hook.

3. Using the wrong legal description. Street addresses aren't sufficient. Use the exact legal description from the current deed or a recent title report.

4. Not recording the deed. An unrecorded deed is still valid between the parties, but it won't protect the grantee against subsequent buyers or creditors. Record it immediately.

5. Assuming a quitclaim deed protects you in a purchase. If you're buying property, insist on a warranty deed and title insurance.

Frequently Asked Questions

How much does a quitclaim deed cost?

If you prepare it yourself, costs are minimal — typically just the recording fee ($10–$75) and notarization ($5–$15). If you hire an attorney, expect to pay $150–$500 depending on your location and the complexity of the transfer.

Can I quitclaim my house to my child to avoid Medicaid estate recovery?

This is risky. Medicaid has a 5-year look-back period. If you transfer property within 5 years of applying for Medicaid, you may be disqualified from receiving benefits for a penalty period. Consult an elder law attorney before attempting this.

Does a quitclaim deed affect my credit?

Not directly. However, if you quitclaim your interest in a property but remain on the mortgage, and the new owner stops making payments, your credit will be damaged.

Can I quitclaim property to myself and another person?

Yes. This is commonly done to add a spouse or family member to the title. You would list yourself as both grantor and one of the grantees.

Do I need a lawyer for a quitclaim deed?

You're not legally required to have a lawyer in most states, but it's strongly recommended for anything beyond a simple spousal transfer. The potential tax and liability consequences are significant enough to justify a legal consultation, which typically costs $200–$500.

How long does a quitclaim deed take to process?

The deed is effective once signed and delivered. Recording typically takes 1–4 weeks depending on the county, though some counties now offer same-day digital recording.

The Bottom Line

Quitclaim deeds are a useful tool for specific situations — family transfers, trust funding, title corrections, and divorce settlements. They're fast, cheap, and simple. But they provide zero buyer protection and can create serious tax consequences if used without proper planning.

Before signing any quitclaim deed, ask yourself three questions:

1. Is there a mortgage on this property, and if so, what happens to it?
2. What are the tax consequences (gift tax, property tax reassessment, capital gains)?
3. Would a different type of deed better protect everyone involved?

When in doubt, spend the $200–$500 for a [real estate attorney](/blog/how-to-build-real-estate-team)'s advice. It's cheap insurance against a very expensive mistake.

Related Articles

• Property Taxes Explained: How They Work and How to Reduce Them
• How to Challenge Your Property Tax Assessment (And Win)
• Can You Get a HELOC with a Property Tax Lien?