Onward Intel: Quitclaim Deed vs. Special Warranty Deed

What are the key differences? Both Quitclaim Deeds and Special Warranty Deeds are used to transfer property ownership, but they offer various  levels of protection, guarantees, and usage scenarios. Here’s the 411 so you can be well informed on which may serve you best.

1. Level of Title Protection

Deed Type

Title Guarantees

What it Covers

Quitclaim Deed

❌ No guarantees

The grantor transfers whatever interest they have but does not promise a clear title. The grantee takes all risks.

Special Warranty Deed

✅ Limited guarantee

The grantor ensures no title defects occurred during their ownership, but does not guarantee a clean title before they acquired it.

A Quitclaim Deed offers zero protection for the buyer, while a Special Warranty Deed provides limited protection covering only the seller’s period of ownership.

2. Common Uses

Deed Type

When it’s used

Quitclaim Deed

  • Transfers property between family members (e.g., adding/removing a spouse from the deed in divorce).
  • Corrects clerical errors on a title.
  • Gifts property with no money exchanged.
  • Does not guarantee the seller actually owns the property.

Special Warranty Deed

  • Used in commercial real estate transactions.
  • Foreclosed or bank-owned properties (lenders limit liability).
  • Estate or trust property sales (executors/trustees avoid past title liability).
  • Provides some legal protection, but not as much as a General Warranty Deed.

A Quitclaim Deed is mostly used for non-sale transfers, while a Special Warranty Deed is common in real estate sales with some protection for buyers.

3. Buyer Risks

Deed Type

Buyer Risks

Quitclaim Deed

  • May not have legal ownership (if the grantor has no valid claim, the buyer gets nothing).
  • May have existing liens, unpaid taxes, or disputes.

Special Warranty Deed

  • Only protects against title defects caused by the current owner.
  • Does not protect against previous ownership disputes, unpaid liens, or legal claims before the seller owned the property.

A Quitclaim Deed is high risk because it provides no guarantees, while a Special Warranty Deed offers some protection but is limited to the seller’s ownership period.

4. Do You Need Title Insurance?

Quitclaim Deed

  • HIGHLY recommended—there are no guarantees.

Special Warranty Deed

  • Recommended—protects against past title issues before the seller’s ownership.

Bottom Line

  • Choose a Quitclaim Deed → When transferring property between trusted parties, like family or after a divorce, without warranties about the title.

  • Choose a Special Warranty Deed → When buying property from a seller who only guarantees their period of ownership, common in commercial real estate or foreclosures.

If you’re buying property with either deed, consider getting a title search & title insurance to avoid future legal issues!

Disclaimer: Information found on Onward.Life, and in this article is for informational purposes only and should not be considered legal, financial, or tax advice. For guidance on your specific situation, please consult with a qualified attorney, financial advisor, or tax professional.