Meaning
A legal promise transfers a grantor’s interest in a property without guaranteeing that the title is clear. The inclusion of a quitclaim covenant means the person giving the asset makes no claims about its history or other liens. This instrument governs the transfer of rights as they currently exist, for better or worse.
It stops applying once the deed is recorded and the transfer is finalized.
Transfer Mechanism
The process moves whatever stake the grantor holds to the receiver immediately. Unlike a warranty deed, a quitclaim covenant offers no protection against future discoveries of debt or rival claims. It is often used in situations where the parties have an existing relationship, such as between family members or during corporate restructuring.
This method is the fastest way to change the name on a record.
Liability Exclusion
By using a quitclaim covenant, the giver is stating that they are only handing over their own potential interest. The grantor avoids the cost of performing a full title search or paying for title insurance. The receiver takes on the risk that the property might be worthless or encumbered.
This arrangement is a low-cost solution for simple transfers where trust is high.
Title Scope
Grantors often use this method to clear up property clouds without litigation. A quitclaim covenant only covers the interest held at the moment of signing. The deed only covers the interest held at the moment of signing.
