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 regarding the title. This means that the grantor conveys whatever interest they may have in the property, but they do not assure the grantee of the validity of that interest or any claims against it. Therefore, if the grantor has a limited or disputed interest, the grantee receives that same limited interest without recourse for any issues that may arise later. This is particularly useful in situations where the parties know each other and trust one another, or when transferring property between family members, as it simplifies the process of interest transfer without the complications that come with ensuring clear title.

The other options detail different types of legal documents that serve distinct purposes. A deed that guarantees transfer of ownership with warranties would be known as a warranty deed, which provides assurances to the grantee about the status and validity of the property's title. A legal document for borrowing funds typically refers to a mortgage or promissory note rather than a deed. Lastly, a contract for leasing property pertains to rental agreements, which are separate from deeds that transfer ownership or interest in real estate. Understanding these distinctions is key in real estate transactions and law.