Deeds : Warranty Vs Quick Claim

Homeowners should consider using a warranty deed instead of a quitclaim deed when transferring ownership for several reasons:

1. Clear Ownership Transfer: A warranty deed guarantees that the property being transferred is free and clear of any liens, claims, or encumbrances, except those specifically mentioned in the deed. It provides a higher level of assurance to the buyer that they are receiving a property with a clean title. In contrast, a quitclaim deed makes no guarantees regarding the title status and only transfers the interest the grantor may have in the property.
2. Legal Protection: By using a warranty deed, the seller (grantor) assumes legal responsibility for defending the title against any claims that may arise in the future. If any title defects or issues surface later, the buyer (grantee) can hold the seller accountable and seek remedies. In the case of a quitclaim deed, the grantor does not provide any warranties or guarantees, leaving the grantee with limited legal recourse if title problems emerge.
3. Lender and Insurance Requirements: Mortgage lenders often require a warranty deed as part of the loan closing process. Lenders prefer the extra protection offered by a warranty deed because it ensures a clear title and mitigates potential risks. Similarly, title insurance companies typically require a warranty deed for issuing title insurance policies to protect the buyer's interests.
4. Future Sale and Financing Opportunities: When selling the property in the future, having a warranty deed can enhance marketability. Buyers are more likely to have confidence in a property with a warranty deed, making it easier to attract potential buyers and secure financing. A quitclaim deed, on the other hand, may raise concerns for buyers and lenders due to the lack of guarantees.

While warranty deeds provide more protection and assurances, there may be situations where a quitclaim deed is appropriate. For instance, when transferring property between family members or in situations where the grantor's ownership interest is uncertain. It's advisable to consult with a real estate attorney or a qualified professional to determine the most suitable deed type for a specific situation.