Warranty Deed vs Quitclaim Deed
What is the Warranty Deed vs Quitclaim Deed?
Warranty deeds contain covenants guaranteeing the grantor's title and defending against defects, while quitclaim deeds transfer only whatever interest the grantor may have, with no warranties whatsoever.
Definition
The distinction between warranty deeds and quitclaim deeds concerns the covenants of title that accompany the conveyance. A general warranty deed contains six traditional covenants of title: three present covenants (covenant of seisin, covenant of right to convey, and covenant against encumbrances) and three future covenants (covenant of general warranty, covenant of quiet enjoyment, and covenant of further assurances). Present covenants are breached, if at all, at the time of conveyance and the statute of limitations runs from that point. Future covenants are breached only when the grantee is actually or constructively evicted and run with the land to protect remote grantees.
A special warranty deed contains the same types of covenants but limits them to defects arising during the grantor's period of ownership. The grantor does not warrant against title defects that arose before the grantor acquired the property. Special warranty deeds are commonly used in commercial transactions and by fiduciaries.
A quitclaim deed, by contrast, contains no covenants of title whatsoever. The grantor simply transfers whatever interest, if any, the grantor may hold in the property. If the grantor has no interest, the grantee receives nothing, and the grantee has no recourse against the grantor. Quitclaim deeds are commonly used to clear title defects, resolve boundary disputes, transfer property between family members, or release potential claims. In some jurisdictions, accepting a quitclaim deed may impair the grantee's ability to claim BFP status because the absence of warranties may put the grantee on inquiry notice.
Key Elements
- 1General warranty deed: six covenants of title (seisin, right to convey, against encumbrances, warranty, quiet enjoyment, further assurances)
- 2Special warranty deed: covenants limited to defects arising during the grantor's ownership
- 3Quitclaim deed: no covenants of title; conveys only the interest the grantor actually has
- 4Present covenants are breached at delivery; future covenants are breached upon eviction
- 5Future covenants run with the land; present covenants generally do not
Landmark Cases
Brown v. Lober
75 Ill. 2d 547 (1979)
Held that the covenant of quiet enjoyment in a warranty deed is not breached until there is an actual or constructive eviction, and that a mere outstanding title defect without interference in possession does not constitute a breach.
Rockafellor v. Gray
194 Iowa 1280 (1922)
Established that future covenants (such as the covenant of warranty) run with the land and can be enforced by remote grantees, while present covenants are personal to the immediate grantee.
Frimberger v. Anzellotti
25 Conn. App. 401 (1991)
Addressed the covenant against encumbrances in the context of a latent zoning or regulatory violation, holding that a violation of a building code did not constitute a breach of the covenant.
Exam Tips
- Know the six covenants and which are present versus future -- this distinction determines when the statute of limitations begins to run and who can enforce the covenant.
- A quitclaim deed is NOT inherently suspicious and does NOT mean the grantor has no interest -- it simply means the grantor makes no guarantees.
- Remember that present covenants are breached at delivery and generally do not run with the land, while future covenants are breached upon eviction and do run with the land.
Common Mistakes to Avoid
- Assuming a quitclaim deed conveys nothing -- it conveys whatever the grantor actually has, it just makes no warranties about what that might be.
- Confusing the breach timing of present covenants (at delivery) with future covenants (upon eviction) and misapplying the statute of limitations.
Memory Aid
SRC-WQF for the six covenants: Seisin, Right to convey, no enCumbrances (present); Warranty, Quiet enjoyment, Further assurances (future).