What is a "quitclaim deed"?

A quitclaim deed is a legal instrument used to transfer interest in a property from one party to another without providing any warranties or guarantees about the title. This means that the grantor (the person transferring the property) does not make any assurances that they have good title to the property or that there are no encumbrances, liens, or claims against it. Essentially, the grantor is relinquishing any rights or claims they may have to the property, but the recipient receives no assurance that the title is clear or marketable.

This is particularly useful in situations where the parties involved trust one another, such as transferring property between family members or clearing up title issues among co-owners. The lack of guarantees makes quitclaim deeds less desirable for traditional property transactions compared to warranty deeds, which do provide assurances about the title.

The other options pertain to different concepts: title insurance provides protection against defects in a property title, a contract binding a seller to warranty their property would typically involve a warranty deed, and a form of insurance for real estate aligns more closely with title insurance than with the quitclaim deed.