Warranty Deed vs Quitclaim Deed: Which One Do You Need?

The deed is the document that actually moves ownership, and the type of deed decides what the seller is promising about the title. A general warranty deed promises that the title is good all the way back through every prior owner. A quitclaim deed promises nothing; it transfers whatever interest the grantor happens to hold, which could be the whole property or none of it. Most purchase contracts specify which deed the seller must deliver, and buyers who skip that line discover at closing that they are getting less than they assumed.

What a general warranty deed promises

A general warranty deed carries the full set of title covenants: that the grantor owns the property, has the right to convey it, that there are no undisclosed encumbrances, that the buyer’s possession will not be disturbed by a superior claim, and that the grantor will defend the title and sign whatever further documents are needed to perfect it. These promises reach back over the entire history of the parcel, not just the years the seller owned it. If a lien from two owners ago surfaces, the seller who gave a general warranty deed is on the hook.

In Virginia, the statute gives short phrases a defined meaning, so a deed that conveys “with general warranty” imports those covenants without reciting them. That is why Virginia deeds can look sparse while carrying full protection. Our real estate practice checks that the operative words in the deed match what the contract required, because a one-word change in the granting clause changes the seller’s liability.

Special warranty deeds: the common middle ground

A special warranty deed (sometimes called a limited warranty deed) narrows the promise to the grantor’s own period of ownership. The seller warrants that they did nothing to cloud the title, but makes no promise about what happened before they bought. This is the customary form in the District of Columbia, and it is standard in commercial sales, builder sales, bank-owned sales, and transfers by estates and trustees, where the seller either cannot or will not vouch for the whole chain.

For the buyer, a special warranty deed shifts the weight to title insurance. The seller stands behind the recent past; the owner’s policy stands behind everything older. That combination works well, which is why most buyers accept a special warranty deed without objection. Our note on whether you need an owner’s title policy explains what that coverage adds.

What a quitclaim deed does and when it is used

A quitclaim deed conveys whatever interest the grantor has, if any, with no covenants at all. If the grantor owned nothing, the grantee receives nothing and has no claim against the grantor. That makes quitclaims unsuitable for an arm’s-length purchase, but useful in situations where the parties already know what is being transferred:

• transfers between spouses in a divorce settlement or between family members as a gift;
• moving property into a revocable trust or into an LLC the owner controls;
• clearing a cloud on title, such as a possible heir or former co-owner releasing any claim;
• correcting a prior deed that misspelled a name or misdescribed the parcel.

Title insurers look hard at quitclaims in the chain of title. A quitclaim from a stranger to the chain can signal a disputed interest, and the insurer may require an affidavit or additional documentation before issuing a clean policy. If someone offers you a quitclaim deed in a sale, ask why, and expect the answer to affect the price.

New York’s bargain and sale deed

New York residential practice rarely uses a full warranty deed. The common form is the bargain and sale deed with covenant against grantor’s acts, under which the seller promises only that they have not personally encumbered the property. In substance it resembles a special warranty deed. A bargain and sale deed without covenants is closer to a quitclaim and appears in transfers by executors, referees in foreclosure, and similar fiduciaries. The contract of sale will state which form the seller must deliver; if it is silent, the buyer’s counsel should raise it before signing rather than at the closing table.

Which deed your contract should require

The deed type is a negotiated term, and the time to negotiate it is in the purchase agreement. A buyer paying full market value in an ordinary residential sale can reasonably ask for a general warranty deed in Virginia or a bargain and sale deed with covenants in New York. A buyer of a commercial building, an estate property, or a foreclosure should expect a special warranty deed and should price the title policy accordingly. Our real estate contract and negotiation work covers this clause alongside the contingencies and the closing deliverables.

Two related points apply to every deed. First, the deed must be recorded (with the Recorder of Deeds in the District, the circuit court clerk in Virginia, and the county clerk or New York City Register in New York) to protect the buyer against a later purchaser or creditor; an unrecorded deed is valid between the parties but vulnerable to anyone who records first without notice. Second, the deed must state how multiple buyers hold title, which controls what happens when one of them dies. Our comparison of joint tenancy and tenancy in common walks through those options.

If you are reviewing a contract that leaves the deed type open, or you have been handed a quitclaim deed in a transaction where you expected more, a consultation with Capitol Law Partners can sort out what you are actually receiving. Schedule a consultation.

This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication.

Attorney Cagatay Ersoy. Practical strategy for founders, investors, and growing companies.

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