What’s the Difference between a Quitclaim Deed and a Warranty Deed?
A Deed is a document drafted by an Attorney, that transfers real property from a person or entity to another person or entity. A properly drafted Deed will describe the transferring parties, the type of conveyance, the consideration, the ownership interest being conveyed, any specific promises or statements, the tenancy that is to be established, the property description, vesting information, and any encumbrances or mortgages on title. A Grantor is the party transferring the ownership interest and the Grantee is the party being transferred the ownership interest.
A Warranty Deed is a type of Deed that transfers ownership promising that the Grantor owns the property, and that the property is free and clear of all liens and encumbrances, except for the lien of real property taxes not yet by law required to be paid, and that the Grantee is subject to any reservations, restrictions and encumbrances on title. If any reservations, restrictions and encumbrances are listed on title, that the Grantor has good right to sell or convey the property, and the Grantor promises to warrant and defend that the Grantor’s right to sell or convey the property, against any lawful claims and demands of all persons that may contest that right.
Warranty Deeds are usually used in real estate transactions and a recent title report is obtained to assure that the Grantor indeed the owner of the property and that the Deed correctly reflects what is on title. If any reservations, restrictions and encumbrances are listed on title, they will be listed in the title report.
A Quitclaim Deed is a type of Deed that transfers ownership, but does not promise the property is free and clear of all liens and encumbrances, and does not usually list any reservations, restrictions and encumbrances that may be on title.
Quitclaim Deeds are usually used to gift property to another person or entity, transferring property to the Grantor’s Trust, to add or take off a person or entity from the title, or to correct an error on the previous Deed.
In Hawaii, when real property is transferred by either Quitclaim Deed or by Warranty Deed, the Deed is signed and usually recorded with either the Bureau of Conveyances, Regular System, or the Office of the Assistance Registrar of the Land Court. Recording a Deed with the State of Hawaii puts the world on notice that the conveyance has occurred, the Deed has been accepted by the recording system for proper requirements, and officially records the conveyance to the chain of title. In Hawaii, it is important to hire an experienced real property conveyancing Attorney, to determine which recording system your property is in, as each System has different Deed requirements to be approved for recording, and improperly prepared or executed documents may be rejected or considered completely invalid.
Need assistance or have any questions about Deeds or transferring real property in Hawaii? We’re here to help!
UPCOUNTRY LAW is here to help you every step of the way, with experienced counsel.
TO GET STARTED call UPCOUNTRY LAW at (808) 419-6662, or use our handy CONTACT FORM to begin the process.
***NOTE: this article, advertisement, and website is for general information purposes only and should not be considered as legal advice or does not create an Attorney-Client relationship with UPCOUNTRY LAW or with Attorney Garrett J. Eden, Esq.