How does a 'quitclaim deed' differ from a warranty deed?

A quitclaim deed is primarily characterized by its function of transferring an ownership interest without making any guarantees about the title's validity or its clarity. This means that when a grantor uses a quitclaim deed, they are conveying whatever interest they may have in the property, but they are not assuring the grantee that the ownership rights are clear of claims or other encumbrances. This can be particularly useful in transactions with family members or in situations where the grantor's interest in the property is unclear.

In contrast, a warranty deed provides a higher level of protection to the buyer because it guarantees that the title is free from defects and that the grantor will defend against any claims to that title. This means that with a warranty deed, the buyer has assurances about the property's legal status and ownership, which is a crucial factor in real estate transactions.

Other options presented do not accurately capture the fundamental difference between these two types of deeds. For example, the notion that a quitclaim deed is designated only for commercial properties, or that it can be revoked, misrepresents their applicability and legal nature. Additionally, the idea that a quitclaim deed offers more protection than a warranty deed is misleading, as the latter is specifically designed to offer buyers more security regarding