Understanding Quitclaim Deeds: A Quick Guide for Property Transfers in Florida

When it comes to transferring property ownership in Florida, quitclaim deeds are among the simplest and fastest options. Unlike other types of deeds, quitclaim deeds are often used for transfers between family members, adding or removing someone from a property title, or clearing up ownership disputes. 

However, they come with unique limitations and risks. This guide will explain what a quitclaim deed is, when to use one, and its benefits and drawbacks to help you determine if it’s the right choice for your needs.

What is a Quitclaim Deed?

A quitclaim deed is a legal document that transfers an owner’s interest in a property without providing any warranties or guarantees about the title’s condition. This type of deed only transfers whatever ownership interest the grantor (person transferring the property) holds, which means if there are unresolved liens, disputes, or unclear title history, the grantee (person receiving the property) inherits these risks.

In contrast to a warranty deed, which guarantees a clear title and provides legal protections to the grantee, a quitclaim deed offers no such assurances. This characteristic makes quitclaim deeds simpler but also riskier, especially in cases where a clear title is essential.

Common Uses for Quitclaim Deeds in Florida

Here’s an overview of some of the most common uses for quitclaim deeds in Florida.

Transferring Property Between Family Members

Quitclaim deeds are often a great choice for transferring property between family members, such as from parents to children or between siblings. Since these transactions typically involve trusted parties and no money being exchanged, there is less concern about title guarantees.

Adding or Removing a Spouse After Marriage or Divorce

Many married couples use quitclaim deeds to add a spouse to the property title after marriage. Similarly, in divorce settlements, quitclaim deeds are often used to remove one spouse from the title, which can simplify the division of property.

Clearing Up Ownership Disputes or Title Issues

In cases where title disputes arise or previous ownership records are unclear, quitclaim deeds can be used to clarify ownership by allowing parties to formally transfer any claimed interest, “cleaning up” the title.

Transferring Ownership to a Trust or LLC

Property owners can also use quitclaim deeds to transfer real estate into a trust, limited liability company (LLC), or other legal entity for estate planning or asset protection purposes.

How Quitclaim Deeds Work: The Process Step-by-Step

Quitclaim deeds are relatively straightforward to use in practice. Here’s how you can use a quitclaim deed to transfer property in Florida:

1. Prepare the Quitclaim Deed Document: You need to draft the quitclaim deed with the full names of both the grantor and grantee, their marital statuses, the legal description of the property, and the property’s address. There are other deed formalities that must be followed, including but not limited to spousal joinder if the property is the grantor’s homestead or a non-homestead clause for a married grantor if the property is not his or her primary residence.
2. Sign and Notarize the Deed: In Florida, the grantor must sign the quitclaim deed in front of a notary public and two witnesses. The grantee does not need to sign, but their name must appear on the deed.
3. File the Quitclaim Deed with the County Clerk: After signing and notarizing the deed, it must be recorded with the clerk of the county where the property is located.
4. Pay Associated Fees: Filing a quitclaim deed involves fees, which vary by county. Additionally, Florida charges a documentary stamp tax on the transfer, calculated based on the property’s sale price or assessed value. A transfer tax may also be triggered when there is an underlying mortgage, even if no funds are being exchanged as part of the transfer. Consulting with a title company in Florida can help to clarify any applicable fees and taxes.

Benefits and Drawbacks of Quitclaim Deeds

If you’re thinking about using a quitclaim deed, it’s important to understand the pros and cons. While it can be a useful tool for speeding up property transfers, it’s not without risks.

Benefits of Quitclaim Deeds

• Simple and Fast Transfer Process: Quitclaim deeds are often completed in a matter of a few days, making them ideal for quick property transfers.
• Low Cost: With minimal documentation and no title insurance requirement, quitclaim deeds are less expensive than warranty deeds that are executed as part of a purchase and sale transaction.
• Ideal for Trusted Transfers: Quitclaim deeds work well for transfers between family members or close associates where there is confidence in the property’s title.

Drawbacks of Quitclaim Deeds

• No Title Protection: Quitclaim deeds do not offer title protection, leaving grantees vulnerable to any liens or title defects.
• Potential for Disputes: Without a clear title guarantee, the grantee could face legal challenges or financial losses if ownership issues arise.
• Limited Use in Sales: Because of the lack of warranties, quitclaim deeds are generally unsuitable for standard real estate sales transactions, where a warranty deed is preferred for buyer protection.

When is a Quitclaim Deed the Right Choice?

Quitclaim deeds are best suited for low-risk transfers where trust exists between the parties, such as family or close associates. They are also useful for administrative changes, like adding a co-owner, transferring to a trust, or managing title adjustments after marriage or divorce. For traditional real estate transactions, where buyers expect title guarantees and protection against future claims, a warranty deed is usually the safer choice.

Quitclaim Deeds vs. Warranty Deeds: Understanding the Key Differences

The main difference between a quitclaim deed and a warranty deed is the level of protection provided to the grantee:

• Quitclaim Deed: No guarantees are made about the title’s condition. The grantor transfers only their interest, if any, without assurances.
• Warranty Deed: Provides a guarantee that the title is free of defects and ensures the grantor has the legal right to transfer ownership. If issues arise later, the grantee can seek compensation from the grantor.

For real estate investors in Florida considering quitclaim deeds, it’s important to weigh the risks carefully. Although quitclaim deeds offer a fast, low-cost transfer option, they leave room for title issues that could affect property value or resale opportunities down the line. By consulting with an experienced Florida title company, investors can better understand whether a quitclaim deed or a warranty deed best aligns with their investment goals. A Florida title company can also help conduct a title search before a quitclaim transaction is undertaken.

Minimizing Risks with Quitclaim Deeds: How Marina Title Can Help

Although quitclaim deeds are relatively simple, they come with risks that can have costly consequences for the grantee. 

At Marina Title, we offer guidance on using quitclaim deeds appropriately, helping you decide whether a quitclaim deed is the right tool for your situation. Our team can help you prepare, notarize, and file the deed to help ensure its legally binding and meets Florida’s recording requirements.

For cases where title clarity is essential, Marina Title can conduct a preliminary title search to check for any potential issues, such as existing liens or ownership claims. This search provides extra peace of mind, especially when transferring property to family members or trusts, where complications from unclear ownership can arise later.

Final Thoughts

Quitclaim deeds offer a simple and effective way to transfer property ownership between trusted parties, but they lack the title guarantees of other deed types. Before moving forward, it’s essential to understand the limitations and risks associated with quitclaim deeds and assess whether they meet your needs.

If you’re considering a quitclaim deed or need help with property transfer in Florida, Marina Title’s experienced team can guide you through the process, ensuring all legal requirements are met. We’re here to make property transfers simple and efficient.
Call us today at 1-855-513-5880 or send us a message via our Secure Contact Form for a free deed transfer consultation. Marina Title provides title, escrow, and closing services throughout the State of Florida.