A client in Brooklyn recently called me. His mother, wanting to simplify her estate, had added him to the deed of her brownstone using a quitclaim deed she downloaded online. It seemed simple, fast, and cheap. Now, years later, as they prepared to sell the property, a title search revealed an old contractor’s lien from a kitchen remodel done long before he was an owner. The “simple” document had transferred his mother’s interest to him—along with all its historical problems, problems she never knew existed. He was now partially responsible for a debt he never knew existed.
This story is common. When transferring real estate, especially between family members, the instrument you use is not just paper. It is a statement of promise. The difference between a warranty deed and a quitclaim deed is a single question: What is the person giving the property promising the person who receives it?
The Quitclaim Deed: A Transfer Without Promises
A quitclaim deed is perhaps the most misunderstood document in real estate. Its function is straightforward: it transfers whatever ownership interest a person has in a property to someone else. If they own it outright, it transfers full ownership. If they own a 25% stake, it transfers that 25% stake. If they have no legal interest at all, it transfers nothing.
The key is what a quitclaim deed does not do. It makes no promises. The person signing the deed—the grantor—does not guarantee they actually own the property or that the title is free from liens, easements, or other claims. They are simply “quitting” their “claim” to the property and giving that claim to the grantee. It is the legal equivalent of saying, “Whatever I have, it’s now yours. I’m not promising I have anything.”
Because of this lack of protection, quitclaim deeds are rarely used in arm’s-length transactions with strangers. No prudent buyer would purchase a home with one, and no title insurance company would underwrite it. They do, however, have a place in estate planning and other specific situations:
- Transferring property to a living trust: When I set up a trust for a client, we often use a quitclaim deed to move their home into the trust. The client is both the grantor and the trustee, so there is no risk of an unknown title defect.
- Adding or removing a spouse from a title: In a divorce or marriage, a quitclaim deed can be an efficient way to retitle a property between spouses who have full knowledge of its history.
- Clearing a “cloud” on the title: If a title search reveals a possible claim from a distant heir or a former spouse, that person can sign a quitclaim deed to clarify they have no interest, effectively clearing the title.
In these cases, the parties have a high degree of trust and a shared understanding of the property’s history. The risk is low. But using it for a major transfer to a child, as my Brooklyn client’s mother did, introduces a contingency that can disrupt a family’s legacy.
The Warranty Deed: A Promise of Clear Title
A warranty deed is the opposite. It is a document of promises—legally enforceable guarantees called “covenants.” When a grantor signs a warranty deed in New York, they are making a series of binding assurances to the grantee.
The New York Real Property Law, specifically RPL § 258, sets forth the language for a “Deed with Full Covenants.” This is the gold standard of property transfers. The grantor is legally promising several things:
- Covenant of Seisin: A promise that the grantor is the legal owner of the property and has the right to sell it.
- Covenant of Quiet Enjoyment: A promise that the grantee’s ownership will not be disturbed by a third party with a superior legal claim.
- Covenant Against Encumbrances: A guarantee that the property is free from any liens or encumbrances, like mortgages or tax liens, except for those specifically disclosed in the deed.
- Covenant of Further Assurance: A promise that the grantor will execute any additional legal documents needed to perfect the grantee’s title.
- Covenant of Warranty: A promise to defend the grantee against any claims made by third parties against the title. If the title fails, the grantor is liable for the grantee’s losses.
This is stewardship. The grantor is not just handing over a property; they are defending its integrity. This is why nearly every standard real estate sale, from a Manhattan co-op to a home on Long Island, uses a warranty deed. It provides the certainty that allows for a clean transfer of generational wealth and forms the basis on which title insurance is issued.
An Intentional Choice for Your Heirs
Choosing between these deeds is not a technical legal decision—it’s a family and legacy decision. Are you simply relinquishing a claim, or are you making a promise about the asset you are passing on?
For the families and executives I represent, the goal is to make life simpler for the next generation, not to create future legal battles. While a quitclaim deed might seem like a simple shortcut to avoid probate, it can burden an heir with title problems that take months or years to resolve in Surrogate’s Court. The initial convenience can create profound, long-term complications.
The choice of a deed must be deliberate. It must account for the property’s history, the relationship between the parties, and the ultimate goal of the transfer. Is this a simple titling adjustment within your own trust, or are you bestowing a core family asset upon a loved one? The answer dictates the level of promise you should provide.
If you are considering transferring real property as part of your estate plan, the first step is to understand exactly what you own. We advise clients not to sign any deed without first commissioning a full title report. Our firm can then review that report with you, identify potential issues, and help select the legal instrument that truly aligns with your intentions for your family.
