Quitclaim Deed

• In a sale involving a quitclaim deed, the buyer takes the property "as is" and takes the risk of any title defects upon himself. The deed effectively releases the property's seller (or "grantor") from liability if the grantor's title to the property should prove defective. For instance, A sells a house to B. A few years later, B decides to sell the house to C by quitclaim deed. C closes this sale, and then new party D shows up and presents C with proof that A actually sold the house to him a few years ago before selling to B, and therefore D, not B, is the owner. Because C bought the property via quitclaim deed, C has no legal remedy against B (or A) because neither of them technically owned the property. Some courts may grant some form of relief if C can prove actual fraud on the part of B, but in cases of mistake, a quitclaim deed effectively places all risk of title problems on C.
  
  

General Warranty Deed

• In contrast to a quitclaim deed, a general warranty deed contains six covenants, or promises, made by the seller to the buyer of the property. The grantor generally warrants that there are no defects in the title of the property and makes himself legally liable if circumstances should prove otherwise.
  
  

Present Covenants

• Three of the covenants made by sellers in a general warranty deed are "present covenants," dealing with events previous to the time of sale. In a general warranty deed sale, the seller promises that he has seisin (basically, legal ownership) of the property, that he has the right to convey the property and that there are no encumbrances (for instance, a lien) on the property. Should the seller not actually own the property he is selling, that constitutes a breach of the covenants of seisin and the right to convey. The majority of jurisdictions find the covenant against encumbrances breached if there is any encumbrance on the property at the time of sale, even one that was disclosed to the buyer.
  
  

Future Covenants

• The other three covenants in a general warranty deed are future covenants, which can be breached even after the sale is completed. By these covenants, the seller effectively promises that the buyer can quietly enjoy the property, and that if any further assurances are needed regarding the title, the seller will provide them. All of these covenants are usually breached when another party shows up after that sale, claiming title to the property that is superior to that of the buyer. The majority of jurisdictions find that any type of interruption in the new buyer's possession may constitute a breach.
  
  

Notice

• When a buyer registers a deed of sale with the county recorder, that registration generally provides notice to any other would-be purchasers who make a title search that the buyer is now the actual owner of the property. However, U.S. jurisdictions are split on the notice conveyed by a quitclaim deed. A small minority holds that someone who buys property via quitclaim deed can't later claim that he honestly believed that the seller held title, the idea being that a quitclaim deed, by its very nature, should put the buyer on notice of the possibility of title issues.