National Real Estate Practice Exam

Which deed allows the seller to convey whatever interest they have in a property?

1. Warranty Deed

2. Quitclaim Deed

3. Special Warranty Deed

4. Transfer on Death Deed

The correct answer is: Quitclaim Deed

A quitclaim deed is a legal instrument used to transfer interest in real property. It allows the seller, or "grantor," to convey whatever interest they have in the property to the buyer, or "grantee," without any guarantees about the extent or validity of that interest. This means that the seller is not making any promises regarding the title, liens, or any claims against the property, which can be a significant limitation compared to other types of deeds. This makes quitclaim deeds particularly useful in situations where the parties know each other well, such as in cases of family transfers or when clarifying property titles; the seller might not be sure of their complete interest or may not wish to assert any warranties on the title they are transferring. In contrast, a warranty deed provides more security for the buyer because it includes guarantees that the seller holds clear title to the property and is responsible for defending that title against claims. A special warranty deed, while also more secure than a quitclaim deed, limits the seller’s liability only to issues arising during their period of ownership. Lastly, a transfer on death deed is used primarily to pass property automatically upon death, rather than to convey current property interest, which makes it irrelevant in contexts concerning current property transactions.