Pros and Cons of Using a Quitclaim Deed Between Family Members

Quitclaim deeds are commonly used to transfer property between family members because they are fast, inexpensive, and simple. However, they also come with important risks that can affect ownership rights, title insurance, taxes, and future sales. Understanding when a quitclaim deed makes sense — and when it doesn’t — helps families avoid costly mistakes.

Pros of Using a Quitclaim Deed Between Family Members

✔ Simple and Fast Transfer

Quitclaim deeds require minimal documentation and can usually be prepared and recorded quickly. This makes them ideal for informal family transfers that do not require lender approval or complex closing procedures.

✔ Low Cost

Because quitclaim deeds do not include title warranties or insurance, they typically involve fewer fees. Many families use them to avoid the expense of a full title search or traditional closing.

✔ Useful for Gifts and Estate Planning

Quitclaim deeds are commonly used to transfer property to children, add or remove a spouse, or move property into a trust as part of long-term estate planning.

✔ Works Well When Trust Already Exists

In families where everyone understands the ownership history and risks, a quitclaim deed can be an efficient way to formalize a transfer without unnecessary complexity.

Cons of Using a Quitclaim Deed Between Family Members

❌ No Warranty of Ownership

The grantor makes no promises that they actually own the property or that the title is free of liens, claims, or defects. If title problems surface later, the recipient generally has no legal protection.

❌ Can Complicate Title Insurance Later

Many title companies scrutinize quitclaim deeds closely. If the property is later sold or refinanced, additional documentation or corrective deeds may be required before title insurance is issued.

❌ Possible Gift and Tax Consequences

Transfers for little or no consideration may be treated as gifts for tax purposes. The recipient typically receives the grantor’s cost basis, which can increase capital gains taxes if the property is sold later.

❌ Existing Mortgages Remain in Place

A quitclaim deed does not remove a mortgage. The original borrower remains responsible for the loan, and the transfer may trigger a due-on-sale clause if lender approval is not obtained.

❌ Risk of Future Family Disputes

If ownership percentages, survivorship rights, or intent are unclear, quitclaim transfers can lead to confusion or disputes among heirs later — especially after death or divorce.

When a Quitclaim Deed Makes the Most Sense

Using a quitclaim deed between family members is usually appropriate when:

• The transfer is a gift or estate-planning move
• No money is changing hands
• The parties trust each other fully
• The property is not being sold or refinanced soon
• Everyone understands the title risks involved

Why These Pros & Cons Matter

Quitclaim deeds offer speed and simplicity, but they also eliminate protections that matter long-term. For family transfers intended to last generations, understanding how quitclaim deeds affect ownership, title, taxes, and future sales is essential.

Looking for Definitions of Real Estate Terms?

If you're researching deeds, title insurance, liens, trusts, or ownership rights, explore our full real estate glossary.