A quitclaim deed works by transferring whatever ownership interest the signer currently holds in a piece of real estate to someone else, with no promise that the interest is valid, complete, or free of liens. The transfer takes effect as soon as the signed deed is delivered to and accepted by the recipient, and it becomes part of the public record once filed with the county. The name is often misspelled as “quick claim deed,” but the correct term is quitclaim, meaning the grantor is quitting their claim. Because the deed carries no guarantees, it is used most often between people who already trust each other: spouses, family members, divorcing couples, or business partners moving property into an entity.
What a Quitclaim Deed Transfers
The defining feature of a quitclaim deed is what it does not do. A general warranty deed guarantees that the grantor actually owns the property, that no hidden liens or claims exist, and that the grantor will defend the grantee against anyone who challenges ownership. A quitclaim deed skips all of that. The grantor hands over whatever interest they happen to hold at that moment. If it turns out they held nothing, the grantee gets nothing, and has no legal recourse against the grantor when a title defect surfaces later.
That is why lenders almost never accept quitclaim deeds in purchase transactions, and why title insurance companies may decline to issue a new policy based solely on a quitclaim transfer. The tradeoff is simplicity. When both parties already know the title is clean, a quitclaim is faster and cheaper than a warranty deed.
What the Deed Has to Contain
A quitclaim deed is usually a one-page form, but it needs specific details to be legally effective. The grantor’s and grantee’s full legal names must match official identification and any prior title records exactly. Even a minor discrepancy, like a missing middle name, can create a title defect that requires a corrective filing later.
The deed also needs a legal description of the property. A street address alone is not enough. The legal description uses metes and bounds, lot and block references, or a surveyor’s description to pinpoint the parcel. You can find this language on the existing deed or in the county’s land records. Most deeds also include the tax parcel identification number so the assessor’s office can track the ownership change.
A statement of consideration describes what was exchanged for the transfer. In gift transfers between family members, this is often a nominal amount like $1 or $10. Some states also require the deed to state the actual purchase price or fair market value for transfer tax purposes, so check your county recorder’s formatting requirements before filing. Many county recorder offices provide blank deed forms designed to meet local standards.
Signing, Notarizing, and Recording
The grantor must sign the deed in front of a notary public, who verifies the signer’s identity and confirms the signature is voluntary. The grantee typically does not need to sign. A handful of states also require one or two witnesses at the signing. Florida and Louisiana both require two witnesses, while most states require none. Using the wrong number of witnesses for your state can get the deed rejected at the recorder’s office or challenged later, so verify the rule before the signing appointment.
After notarization, the deed should be filed with the county recorder or clerk’s office in the county where the property is located. Once recorded, the deed is indexed into the public land records, which puts the world on notice that the property interest has changed hands.
Filing promptly matters. Until the deed is recorded, a later buyer or creditor who searches the public records will not see the transfer. If the grantor were to sell or encumber the same property to someone else who records first, the grantee could lose their claim in many states. Recording the deed the same day or within a few days of signing is the simplest way to avoid this.
The Mortgage Does Not Follow the Deed
This is where most people get tripped up. A quitclaim deed transfers ownership, but it does not transfer the mortgage. The mortgage is a separate contract between the borrower and the lender. If your name is on the mortgage and you quitclaim your ownership to someone else, you still owe the debt. Your credit is still on the line. The lender can still come after you if payments stop.
The reverse is also true. The person who receives ownership through the quitclaim deed does not automatically become responsible for the mortgage payments. The lender’s contract is with the original borrower, not whoever happens to hold the title. The only way to actually remove a borrower from the mortgage is for the new owner to refinance into their own name, or for the lender to agree to a formal loan assumption.
Divorcing couples are especially vulnerable here. One spouse quitclaims their share of the house to the other, assumes the mortgage is now the other spouse’s problem, and discovers months later that missed payments are destroying their credit. If you are giving up ownership and your name is on the mortgage, insist that the new owner refinance first, or at minimum get a written agreement about what happens if payments are missed.
Due-on-Sale Clauses and Garn-St. Germain
Most mortgages contain a due-on-sale clause that lets the lender demand full repayment of the loan if the property changes hands without the lender’s consent. A quitclaim deed is a property transfer, so it can technically trigger the clause. In practice, lenders rarely enforce it for family transfers, but the risk is real, especially for transfers to a business entity like an LLC.
Federal law blocks enforcement in several common cases. The Garn-St. Germain Act prohibits lenders from enforcing due-on-sale clauses on residential properties with fewer than five units for transfers to a borrower’s spouse or children, transfers resulting from a divorce decree or separation agreement, transfers caused by the death of a borrower or joint tenant, and transfers into a living trust where the borrower remains a beneficiary.1Office of the Law Revision Counsel. 12 U.S. Code 1701j-3 – Preemption of Due-on-Sale Prohibitions
Transfers to an LLC do not appear on that exemption list. If you move rental property into an LLC using a quitclaim deed, the lender is legally entitled to call the loan due. Some lenders ignore the transfer because the original borrower remains personally liable; others enforce the clause. The safer approach is to notify your lender and get written approval before making the transfer.
Tax Consequences Before You Sign
Gift Tax Reporting
When you quitclaim property to someone for less than fair market value, the IRS treats the difference as a gift. In 2026, the annual gift tax exclusion is $19,000 per recipient.2Internal Revenue Service. Frequently Asked Questions on Gift Taxes If the property’s value exceeds that threshold, you must file IRS Form 709 to report the gift.3Internal Revenue Service. Instructions for Form 709 Filing the form does not necessarily mean you owe tax right away. The excess is applied against your lifetime estate and gift tax exemption, which is over $13 million for 2026. But failing to file the return at all can trigger penalties.
The Carryover Basis Trap
When you receive property as a gift during the donor’s lifetime, your cost basis for capital gains purposes is the same as the donor’s. If your parents bought a house for $80,000, improved it by $20,000, and quitclaimed it to you while alive, your basis is $100,000. If you later sell the property for $400,000, you owe capital gains tax on $300,000.4Office of the Law Revision Counsel. 26 U.S. Code 1015 – Basis of Property Acquired by Gifts and Transfers in Trust
Inherited property is different. Property received after the owner’s death receives a stepped-up basis equal to its fair market value at the date of death.5Office of the Law Revision Counsel. 26 U.S. Code 1014 – Basis of Property Acquired From a Decedent If the same house is worth $400,000 when the parent dies, your basis is $400,000, and selling for that amount produces zero taxable gain. The difference between gifting property via quitclaim during life and leaving it through inheritance can be tens or even hundreds of thousands of dollars in capital gains tax. It is one of the most expensive mistakes families make with quitclaim deeds, and it usually happens because nobody talked to a tax professional before signing.
When a Quitclaim Deed Is the Right Tool
Despite the risks, quitclaim deeds are the right tool for many situations where the parties know the title is clean and speed matters more than warranties.
- Adding or removing a spouse. After marriage, one spouse can quitclaim the home to both spouses as joint tenants. After divorce, the spouse giving up the property quitclaims their interest to the one keeping it. Both transfers are protected from triggering a due-on-sale clause under federal law.1Office of the Law Revision Counsel. 12 U.S. Code 1701j-3 – Preemption of Due-on-Sale Prohibitions
- Transferring property into a living trust. Moving a home into a revocable living trust is a common estate planning step. As long as you remain a beneficiary of the trust, the transfer is protected from due-on-sale enforcement.
- Gifting property to a family member. Parents frequently quitclaim a home to an adult child. The process is simple, but weigh the carryover basis and gift tax consequences before choosing this over leaving the property through a will or trust.
- Clearing a title defect. If a prior deed misspelled a name, omitted a middle initial, or included an ex-spouse who no longer has a claim, a corrective quitclaim deed fixes the public record.
- Moving property into an LLC. Real estate investors sometimes quitclaim rental properties into an LLC for liability protection. The process is straightforward, but Garn-St. Germain does not cover this transfer, so a due-on-sale clause can be triggered.
Two Situations a Quitclaim Deed Will Not Fix
Using a quitclaim deed to give away property before applying for Medicaid long-term care benefits can backfire. Federal law imposes a 60-month look-back period: if you transferred property for less than fair market value at any point during the five years before your Medicaid application, the state will impose a penalty period of ineligibility calculated from the value of what you transferred.6Office of the Law Revision Counsel. 42 U.S. Code 1396p – Liens, Adjustments and Recoveries, and Transfers of Assets People who quitclaim their home to a child thinking they are shielding the asset often end up in exactly the situation they were trying to avoid: needing expensive care with no coverage and no home to fall back on. Talk to an elder law attorney before signing anything with this goal in mind.
Existing title insurance may also not survive the transfer. Many owner’s policies contain a continuation of coverage clause that keeps the policy in force only as long as the insured has liability through warranties in a deed. Because a quitclaim contains no warranties, the transfer can sever that connection and end the policy. The new owner would need to buy a new policy, and some title companies are reluctant to issue one based solely on a quitclaim without first completing a full title search.