"Should we use a quitclaim or a grant deed?" comes up constantly during divorces, family transfers, and estate planning. They both move real estate, but they protect you very differently. Here is the plain-English difference for California.
Grant deed: the standard, with built-in warranties
A grant deed is the workhorse of California real-estate sales. By using the word "grant," the law implies two warranties: (1) the grantor has not already conveyed the same property to someone else, and (2) the property is free of undisclosed liens or encumbrances created by the grantor. The grant deed also automatically passes any title the grantor later acquires ("after-acquired title").
Because it carries these promises, the grant deed is what buyers, lenders, and title insurers expect in an arm's-length purchase.
Quitclaim deed: no warranties, just "whatever I have"
A quitclaim deed transfers only the interest the grantor actually owns at that moment—and makes no promises that they own anything at all, that title is clear, or that there are no liens. If it turns out the grantor had no interest, the grantee gets nothing and has no warranty to fall back on. It also does not pass after-acquired title.
That sounds risky, and it can be—but in the right context (family transfers, removing an ex-spouse, fixing a name) the lack of warranty is fine because everyone already knows the ownership picture.
When each deed is typically used
Grant deed: standard home sales, transfers where the buyer wants (and a lender/title company requires) warranties and title insurance.
Quitclaim deed: a divorcing spouse releasing their interest to the other; adding or removing a family member; transferring into or out of a living trust or LLC; clearing a possible cloud on title; correcting how a name appears. Many of these can also be done with an interspousal transfer deed or a grant deed—your attorney or escrow officer can advise which fits.
Title-insurance implications you should know
This is the part people miss. A quitclaim deed usually does not come with, or extend, title insurance. Title insurance protects the insured against covered title defects; taking a property by quitclaim from someone whose ownership you have not verified means you may have no coverage if a problem surfaces.
In a normal purchase you receive a grant deed and an owner's title policy issued after a title search. For any transfer, ask the title company whether and how you will be insured before signing—do not assume a deed and a policy are the same thing.
Recording and getting the deed right
Whichever deed you use, it must be properly executed, notarized, and recorded with the County Recorder where the property sits, usually with a Preliminary Change of Ownership Report and any transfer-tax forms. Mistakes in vesting, legal description, or recording can create real problems later. Because deeds carry legal and tax consequences (including possible reassessment), have an attorney or title/escrow professional prepare or review the deed.
Important: this is general information, not legal or tax advice
Brian Cooper is a licensed California REALTOR® with eXp Realty—not an attorney, a CPA, or a certified estate planner. Everything on this page is general information about California real estate and how property changes hands. It is not legal, tax, or estate-planning advice, and it does not create any professional relationship.
Title, probate, divorce, and tax rules are detailed, fact-specific, and change over time. Dollar thresholds and dates in this guide should be re-confirmed against current California law before you rely on them. Please consult a qualified California estate-planning or real-estate attorney and a CPA about your own situation, and confirm the current rules with the court or county recorder. When you are ready to buy, sell, or value a home tied to any of these events, Brian is glad to help with the real-estate side and to coordinate with your attorney and tax advisor. Contact Brian.
Frequently Asked Questions
Is a quitclaim deed legally valid in California?
Yes. A properly completed, notarized, and recorded quitclaim deed is valid and transfers whatever interest the grantor has. It simply transfers that interest without any warranties about the quality of title.
Which is safer, a grant deed or a quitclaim deed?
For someone receiving property, a grant deed is generally safer because it includes implied warranties and is paired with title insurance in a normal sale. A quitclaim offers no warranty, so it is best used when you already know the ownership situation.
Does a quitclaim deed remove someone from the mortgage?
No. A deed transfers ownership of the property; it does not change who owes the loan. Removing someone from a mortgage generally requires a refinance or lender-approved assumption, separate from any deed.
Will a quitclaim or grant deed trigger property-tax reassessment?
It can, depending on who is involved. Many family and spousal transfers qualify for exclusions (for example interspousal or parent-child under Prop 19), but others cause reassessment. Confirm with the County Assessor before recording.
Do I still have title insurance after a quitclaim into my trust?
Not automatically. Title policies have specific rules about successors and trusts. Before transferring into a trust or LLC, ask your title company whether coverage continues, and consider an endorsement if needed.
Can I prepare the deed myself?
Forms exist, but errors in vesting, the legal description, transfer-tax declarations, or recording can be costly and hard to fix. Given the stakes, have an attorney or title/escrow professional prepare or review it.
