National Real Estate Practice Exam

A quitclaim deed is a legal instrument used to transfer interest in real property from one party to another without making any guarantees or warranties about the title. This means that the seller (grantor) relinquishes any claim they may have to the property, but they do not assure the buyer (grantee) that the title is clear or free of defects. Essentially, the seller transfers whatever interest they may have, if any, without affirming that they have a valid title to convey.

This type of deed is often used in situations such as transferring property between family members, resolving issues in divorce settlements, or clearing up title defects, where the parties are already aware of the existing circumstances. It's particularly useful in circumstances where the grantee accepts the risk related to any title issues.

In contrast, a warranty deed includes guarantees from the seller that they own the property and that it is free from any encumbrances, except those specifically disclosed. A special warranty deed offers limited warranties, protecting the grantee only against defects that arose during the time the grantor owned the property. A transfer on death deed specifies that the property will automatically transfer at the grantor's death, without concern for title warranties.

Understanding the distinctions among these types of deeds helps clarify the