How do a warranty deed and a quitclaim deed differ?

A warranty deed and a quitclaim deed serve different purposes in the transfer of property rights, and understanding these differences is crucial for real estate transactions. A warranty deed provides a strong assurance of the seller's title. The grantor (the seller) guarantees that they hold clear title to the property and have the right to sell it, and it also warrants that the property is free from any encumbrances or claims that may arise from before the date of the deed's execution. This gives the buyer confidence that if any issues arise regarding ownership or title, the grantor is responsible for resolving those issues.

On the other hand, a quitclaim deed does not provide any such guarantees. It transfers whatever interest the grantor has in the property at the time of the transfer, but it makes no assurances regarding the quality of the title. Essentially, the grantor is saying, "I am transferring my interest in this property, but I cannot guarantee that I own it or that there are no other claims against it." This lack of guarantees makes quitclaim deeds more common in situations where the parties know each other, such as transfers between family members or when clearing up title issues. Thus, the correct answer highlights the crucial distinction regarding the guarantees of title and ownership