A client came into my Manhattan office with a plan. He wanted to add his daughter to the deed of his Brooklyn brownstone, a property in his family for three generations. He had downloaded a quitclaim deed, filled it out, and just wanted me to “look it over” before he filed it. This is a common request. My response is always the same: we must discuss what this document does—and what it does not.
Transferring real estate is not like handing someone car keys. The deed is the legal instrument conveying ownership, and the type of deed used carries significant consequences. While a quitclaim deed seems like a simple, inexpensive shortcut, it often creates more problems than it solves.
The Quitclaim Deed: A Transfer of Interest, Not a Guarantee of Title
A quitclaim deed is the “as-is” option for real estate. When a person signs one, they are transferring whatever ownership interest they hold in the property to someone else. The key phrase is whatever interest they hold.
The deed makes no promises. It does not guarantee the person signing it owns the property, that the title is clear, or that no liens or other claims exist against it. The grantor is simply “quitting” their claim and passing it to the grantee. If the grantor’s title was flawed—or they didn’t own the property at all—the new owner has no legal recourse against them based on the deed.
In my practice, I have seen these used between spouses during a divorce or to add a family member to a deed, much like my client intended. While trust between family members might be high, the risk is real. Undiscovered title issues from decades past—an old mortgage never properly discharged, a contractor’s lien, a boundary dispute—can surface and jeopardize the property for the next generation.
The New York Standard: Bargain and Sale Deeds
In New York, the far more common and prudent instrument for a property transfer is a Bargain and Sale Deed. While some states use “Grant Deeds” or “Special Warranty Deeds,” our state has its own standard. A Bargain and Sale Deed provides protection that a quitclaim deed lacks.
Specifically, we almost always use a Bargain and Sale Deed with a Covenant Against Grantor’s Acts. This covenant is a promise. The person transferring the property legally warrants that they have not done anything to encumber the title during their ownership. They are not making promises about what a previous owner might have done, but they are guaranteeing a clean slate for their period of stewardship. This form is so standard that its language is laid out in New York’s Real Property Law, specifically RPL § 258.
This single covenant is a requirement for any title insurance company to issue a policy. Without title insurance, no bank will issue a mortgage, and the property becomes nearly impossible to sell or refinance. Using a quitclaim deed can effectively poison the well for future transactions.
Deeds and Your Generational Legacy
The choice of a deed is not a transactional detail; it is a foundational element of your estate plan. Many of our clients transfer their primary residence or investment properties into a revocable living trust to avoid the time and expense of Surrogate’s Court. This transfer must be done with a proper deed.
If you use a quitclaim deed to fund your trust, you may inadvertently sever the chain of title insurance. If a title issue arises later, the insurance company that protected you when you bought the home may deny a claim from the trust, arguing its policy did not extend to the new owner (the trust). A properly executed Bargain and Sale Deed, handled by an attorney, ensures the transfer is done correctly and title protection remains intact.
Stewardship is thinking a generation ahead. The goal is to pass property to your heirs with a clean, insurable title—not a legal problem waiting to be discovered. The few hundred dollars saved on a DIY quitclaim deed can cost your children tens of thousands in legal fees to clean up a messy title years from now.
Understand the instrument you are using before you download a form or attempt to transfer a deed on your own. The integrity of your most valuable asset is at stake.
If you are considering transferring property to a family member or into a trust as part of your estate plan, schedule a consultation with our firm. We can review the property’s history and prepare the correct legal instrument to protect your family’s legacy.
