Quit claim deeds are often viewed as convenient tools for transferring property between family members, spouses, or trusted individuals. However, convenience is not the same as protection. A quit claim deed simply transfers whatever ownership interest the grantor holds—if any—without guaranteeing that the title is valid or that the property is free of liens.
According to the American Land Title Association (ALTA), title defects affect roughly 25% of residential real estate transactions, underscoring how risky an unwarranted deed transfer can be.
For many situations, a quit claim deed is not the right choice. Understanding the pitfalls can help property owners avoid costly surprises that may surface years after the transfer.
Why Quit Claim Deeds Can Be Risky
1. No Guarantee of Ownership
A quit claim deed offers no warranties. If the person transferring property does not legally own it—or owns only a portion—the recipient receives exactly that. Nothing more. This lack of protection makes these deeds poorly suited for transactions involving parties who are not well-known or trusted.
2. Hidden Liens and Debts Transfer With the Property
Quit claim deeds do not clear liens, unpaid taxes, judgments, or other encumbrances. A 2023 study by ATTOM Data Solutions found that over 7% of U.S. properties carry unresolved liens, many of which property owners are unaware of. When someone accepts a property through a quit claim deed, they inherit all those unresolved issues without any legal recourse.
3. Poor Fit for Traditional Buyer–Seller Transactions
Financial institutions typically require title insurance and a warranty deed before approving a mortgage. Because quit claim deeds offer no such assurance, lenders often reject them. Buyers who attempt to resell a property later may also face obstacles if the title trail is unclear.
Scenarios Where Quit Claim Deeds Should Not Be Used
1. Standard Real Estate Purchases
When unrelated parties engage in a property sale, a quit claim deed creates unnecessary risk. Warranty deeds or special warranty deeds are more appropriate because they provide legal guarantees of clear and marketable title.
2. Properties With Complicated Ownership History
If a property involves multiple heirs, a trust, previous divorces, or unclear title history, a quit claim deed may transfer unresolved disputes. These situations often require legal due diligence and a formal title search before any transfer takes place.
3. Homes With Existing Mortgages
Many property owners mistakenly believe that transferring ownership via a quit claim deed removes them from the mortgage. It does not. The original borrower remains responsible for loan repayment regardless of whose name is on the title. This misunderstanding can lead to major financial and legal complications.
4. Estate-Planning Situations Without Legal Oversight
People sometimes try to use quit claim deeds as shortcuts to bypass probate or speed up inheritance transfers. However, these documents can create tax issues, trigger Medicaid penalties, or conflict with estate plans. Professional guidance is essential before using a quit claim deed for estate purposes.
Common Misconceptions That Lead to Problems
One of the most frequent misconceptions is that a quit claim deed “clears” ownership. It does not. It only passes on the exact interest the grantor holds. Consumers also frequently skip title searches because they assume the process is simple. Without a title review, property owners may unknowingly accept tax liens, improper legal descriptions, or unresolved ownership claims. These issues often remain undiscovered until the owner attempts to refinance or sell.
Professional Help Can Prevent Quit Claim Deed Mistakes
Because the risks are significant, consulting a professional is often the safest path. A knowledgeable real estate deed lawyer can:
Conduct a proper title search
Identify liens, encumbrances, and disputes
Advise whether a quit claim deed is appropriate
Prepare alternative deed types that offer more protection
Ensure all legal formalities are correctly handled
Affordable Legal Services LLC offers flat-fee, accessible support—helping Missouri property owners make informed decisions that protect their long-term interests.
Quit Claim Deed Pitfalls: When You Should Not Use One
Quit claim deeds can be safely used in limited situations, such as property transfers between trusted family members. However, they are not appropriate for most real estate sales, transactions involving lenders, or cases with unclear ownership histories. When in doubt, the safest step is to consult a legal professional before signing anything.
If someone is considering using a quit claim deed, Affordable Legal Services LLC can help determine whether it is the right choice—while ensuring the transfer protects their interests.
Contact Affordable Legal Services LLC today to schedule a consultation and avoid costly real estate mistakes.
