A common question from potential clients is what the differences between grant deeds and quitclaim deeds happen to be.
Both of these legal instruments are commonly used in California. The one to use in your situation depends on specific facts and circumstances. This blog will provide general information about which may suit your needs. However, this information is only for general guidance. A full consultation with a qualified real estate attorney would be necessary to properly advise you.
Both grant deeds and quitclaim deeds convey ownership in a piece of property to another person. However, the fundamental difference between the two is that a grant deed conveys the property interest the grantor has in the property, but also warrants that the grantor actually owns the property and the new owner will not be liable for any unknown ownership claims. Thus, the grantee (new owner) can be protected that the property he or she just purchased does actually contain a marketable title.
A quitclaim deed only conveys whatever interest the grantor may have or may not have. There is no implied warranty contained in a quitclaim deed stating whether there may be unknown ownership claims and whether the grantor even owns the rights to the property conveyed.
In California, quitclaim deeds are commonly used between spouses, relatives, or if a property owner is transferring his or her property into his or her trust. A grant deed is commonly used in most arms-length real estate transactions not involving family members or spouses.
A grant deed and quitclaim deed, regardless of which is one used, can be complicated to execute and you should consult a real estate attorney before attempting to do one on your own. If you are selling a home here in California, the buyer will likely want you to convey a grant deed warranting that the home the buyer is purchasing actually belongs to you and you have good and marketable title to the home that is being sold. If you are in a situation where you have bought a home that does not have marketable title, we can help you. Our founder, Mr. Sagar Parikh, is uniquely qualified. He is both a real estate broker and a real estate attorney who practices throughout Beverly Hills, Los Angeles, and Orange County. Contact us today for a free consultation.