Yes, you can sell a property received via quitclaim deed, but you’ll face challenges that don’t come with regular property sales. A quitclaim deed transfers ownership without promising the title is clear or free from problems. When you receive property through a quitclaim deed transfer, the buyer gets “whatever interest” the seller has—which could mean full ownership, partial ownership, or nothing at all. The biggest issue selling a quitclaimed property is that buyers, lenders, and title companies see red flags. Title insurance companies often won’t issue policies without proof your title is clean. Banks typically refuse mortgages on quitclaimed properties without extensive investigation. You’ll lose many potential buyers simply because they can’t get financing.
What You’ll Learn in This Article
🔧 How to sell a property you got through a quitclaim deed – The exact steps and requirements
🚨 Risks buyers and lenders face – Why people hesitate to buy quitclaim properties
💰 Financing and title insurance challenges – What problems stop sales from closing
⚖️ Legal protections and what you must disclose – How to stay out of court
✅ Mistakes to avoid – Common errors that kill deals or cause liability
The Core Problem: Understanding What a Quitclaim Deed Actually Does
A quitclaim deed is a legal document that transfers ownership interest from one person (the grantor) to another (the grantee). The name comes from the word “quit,” meaning to give up or relinquish. When you sign a quitclaim, you’re saying, “Whatever rights I have in this property, I’m giving them to you.” That’s it. You make zero promises about whether you actually own the property, whether someone else has a claim to it, or whether the property has liens against it.
This differs completely from a warranty deed, which promises the seller owns the property free and clear, has the right to sell it, and will defend the buyer against any future claims. With a warranty deed, if problems pop up later, you can sue the seller for breaking their promise. With a quitclaim, you have no one to sue because no promises were made.
| Deed Type | What Gets Transferred |
|---|---|
| Quitclaim | Whatever interest grantor has—zero title guarantee |
| Warranty | Full ownership with complete seller guarantee |
| Special Warranty | Full ownership with limited seller guarantee |
The federal government doesn’t regulate which deed type you use. Instead, each state sets its own deed requirements about notarization and recording. Some states require witnesses. Others require a notary public to verify your signature. Recording fees vary by county from $25 to $300 or more. What matters federally is that the deed gets recorded with the county where the property sits.
State laws also control how long you must wait before the title becomes immune from challenge. In most states, if you possess the property openly and continuously for seven to twenty years without anyone challenging your ownership, the law grants you legal protection called “adverse possession.” However, if your title shows a quitclaim deed in the chain, a previous owner or their heirs might still challenge your ownership within that timeframe. This is precisely why title insurance exists—it protects you if someone tries to reclaim the property after you’ve received it.
Why Selling a Quitclaim Property Creates Major Hurdles
When you received your property through a quitclaim deed, the original owner never promised their title was clean. You accepted that risk. Now that you want to sell, you’re passing that risk forward to a new buyer. Most buyers won’t accept it. Here’s why.
Lenders see massive red flags. If someone needs a mortgage to buy your property, their bank will demand proof of clear title before approving any loan. Banks typically investigate the title using detailed searches that go back decades. A quitclaim in your chain of title makes lenders nervous because it suggests something was wrong when you received the property. Maybe there was a title dispute. Maybe the previous owner wasn’t certain they had the right to transfer it. The lender sees risk and says no.
Title insurance becomes a problem. Title insurance protects property owners against claims that someone else owns the property or has rights to it. Title companies often refuse to issue policies for quitclaimed properties without a thorough title search proving no issues exist. Insurance companies won’t stick their necks out. They know a quitclaim is a red flag. If they insure the property and a problem surfaces later, they’re on the hook financially. Most will require you to hire an attorney to investigate the full chain of title before they’ll write a policy.
Buyers get nervous. Real estate investors and homebuyers understand that a quitclaim deed means risk. They know the previous owner made no promises about the title. If you’re selling with a quitclaim instead of offering a warranty deed, buyers assume something is hidden. This fear alone can kill your sale or drop your price significantly. Buyers will demand inspections, title searches, and often require the seller (that’s you) to guarantee the property is problem-free anyway, which defeats the purpose of using a quitclaim.
The chain of title becomes problematic. When you sell property, lenders and title companies examine the entire chain of title—the complete history of who has owned the property and what documents transferred ownership. If that chain contains a quitclaim deed, it creates what professionals call a “defect in title.” This defect doesn’t necessarily mean there’s a real problem, but it signals that something unusual happened. Perhaps the previous owner wasn’t sure they owned the property. Perhaps a previous sale was contested. The title defect raises questions that must be answered before anyone will buy or lend on the property.
The Three Most Common Selling Scenarios With Quitclaim Properties
Scenario 1: You Inherited Property Through a Quitclaim Deed and Want to Sell
This happens frequently when estates use quitclaim deeds to distribute property to beneficiaries. The parent’s will specified who gets the house, but the deed used to transfer it was a quitclaim. Now you own the property outright and want to sell.
| Your Action | What Happens Next |
|---|---|
| List property at market price | Buyers and lenders question the quitclaim in your chain |
| Get pre-sale title search done | You discover liens, taxes, or claims from original owner |
| Offer warranty deed at closing | Buyers gain confidence because you guarantee title |
| Accept lower offers | Quitclaim properties typically sell for 5-10% less |
Your best move is getting a title search before listing. If the title is clean (no liens, unpaid taxes, or prior claims), you can tell buyers the search proved the property is problem-free. Many buyers will accept that assurance. If problems exist, you must fix them before selling. This might mean paying off old tax liens, clearing mechanic’s liens, or getting the original owner to file deed of reconveyance. Yes, these steps cost money, but they’re mandatory if you want to sell successfully.
Many heirs don’t realize that just because they inherited property doesn’t mean the title is automatically clear. The deceased parent might have had debts that created liens against the property. Creditors of the estate have the right to place claims against inherited property to recover money the deceased owed them. These liens attach to the property regardless of how the deed was transferred. Your first step should always be having an attorney review the estate and verify that all debts have been settled and all liens satisfied.
Scenario 2: You Received Property in a Divorce Settlement via Quitclaim Deed
During divorce proceedings, spouses often transfer property using quitclaim deeds. The court order specifies who keeps the house, and a quitclaim deed executes that order. One spouse walks away from the title. The other keeps the property—but only got a quitclaim, not a warranty deed.
| Your Action | What Happens Next |
|---|---|
| Verify divorce decree matches the property | Court order should clearly show sole ownership |
| Pay off original mortgage or refinance | Ex-spouse’s name may still be on loan |
| Do title search for any liens filed | Ex-spouse’s creditors might have filed claims |
| List with clear title documentation | Show buyers decree proving ownership is resolved |
The tricky part is the mortgage. A quitclaim deed transfers title but doesn’t transfer the mortgage. If both of you are on the loan, the bank still expects both of you to pay. The lender can demand full payoff if you refinance. You must refinance into your name alone before selling, or the new buyer can’t get their own mortgage because your ex is still liable for the old one. This creates a clouded title that no title company will insure.
In divorce situations, many people make the mistake of thinking a quitclaim deed solves everything. The court says it’s yours, they sign the quitclaim, and they think they’re done. But that’s not how mortgages work. The mortgage is a separate contract between you, your ex, and the bank. The bank doesn’t care that you received a quitclaim deed. They care that both names are on the promissory note. Both of you remain liable unless the bank agrees to release one party. This is a critical distinction that catches many divorced homeowners off guard years later.
Scenario 3: You Bought Property at a Tax Sale Using a Quitclaim Deed
Some people buy foreclosed or tax-sale properties via quitclaim deed because that’s all the county issued. These properties often have title problems because the previous owner didn’t pay taxes or maintain the property legally.
| Your Action | What Happens Next |
|---|---|
| Conduct extensive title search immediately | Tax sales frequently have hidden liens |
| File quiet title action if necessary | Court process proves you’re true owner |
| Pay off any surviving liens or taxes | Some liens survive and become responsibility |
| Invest in title insurance before resale | Insurance requires proof title is clear |
Tax sales don’t automatically clear the title. A clouded title means someone else might have a legal claim to the property. To sell it, you need a clear title. This is where a quiet title action comes into play. You file a lawsuit asking the court to officially declare that you’re the true owner and that no one else has rights to the property. Once the judge rules in your favor, that court order becomes part of the public record and clears your title. Yes, it costs attorney fees, but it’s the only way to sell a foreclosure or tax-sale property confidently.
Understanding tax sale procedures is essential when buying foreclosed properties. County tax sales typically give the previous owner a redemption period (usually one to three years) to reclaim the property by paying back taxes and penalties. Until that period expires, the property title remains clouded because the previous owner retains certain rights. Even after the redemption period ends, other liens might have survived the sale. Mechanic’s liens, judgment liens, and some federal tax liens survive property sales and remain attached to the title. Only a quiet title action can eliminate these surviving claims.
How Mortgages and Financing Really Work With Quitclaim Properties
Here’s the hard truth: lenders hate quitclaim deeds. Even if you own the property completely, the fact that you received it via quitclaim deed instead of a warranty deed signals problems to lenders.
When you try to refinance or take out a mortgage, the lender will order a title search using detailed investigations. They’re looking for clear title dating back years. If they find a quitclaim in your chain of ownership, they’ll ask questions. “Why did the previous owner use a quitclaim? Was there a dispute? Did they not know who owned the property?” The lender assumes something was wrong. They may require you to prove the title is clean through additional documentation or refuse the loan entirely.
If you bought with a mortgage already in place, this gets messier. Mortgages include a “due-on-sale clause,” which means the lender can demand full payoff immediately if you transfer title without permission. When you use a quitclaim deed to transfer property, some lenders interpret this as a sale even though no money changed hands. The bank can call the entire remaining loan balance due right now. You’d face foreclosure.
Even worse, the original borrower stays liable for the mortgage after a quitclaim. If you quitclaimed property to someone else but kept your name on the mortgage, you’re still legally responsible for payments. If the new owner stops paying, the lender comes after you. Your credit gets destroyed. You can be sued for the full amount. This is why divorce settlements involving mortgaged property are so dangerous—one spouse signs a quitclaim but remains responsible for a debt they no longer benefit from.
Lenders conduct what’s called “title underwriting,” which means they investigate the entire title history before approving any loan. During this process, they look for anything unusual. A quitclaim deed in the chain raises immediate red flags. They might order a more expensive title search, require an attorney’s opinion letter about the title, or demand additional insurance from you. Some lenders automatically deny mortgages on properties with quitclaim deeds in the immediate ownership chain (the last one or two owners). Understanding this helps explain why selling a quitclaim property is so difficult.
Title Insurance and Quitclaim Properties: What You Must Know
Title insurance is a single-premium insurance policy protecting homeowners against title defects discovered after purchase. The title company searches records, verifies ownership, and guarantees they’ll defend you against claims if someone later tries to prove they own the property.
Title companies are reluctant to insure quitclaim properties without thorough investigation. They know a quitclaim means the previous owner made no promises about title. If they issue a policy and a problem surfaces, the title company assumes the risk. Most will require one of three things: (1) A complete title search proving no defects exist, (2) A statement from the previous owner explaining why they used a quitclaim, or (3) Additional documentation clearing the title.
When you sell a quitclaim property, you have two options. First, you can purchase title insurance yourself before selling. This shows buyers that a professional investigated the title and found no problems. Buyers gain confidence. Second, you can tell buyers that title insurance is available at their expense during closing. Many sellers push this option, making the buyer pay for insurance. But this makes buyers suspicious. It signals you’re hiding something.
The best strategy is getting a title search and policy before listing. This costs $200-$500 but is worth every penny. When buyers see you already purchased title insurance, they know the property is clear. You’ll attract more offers and get a better price.
Title insurance comes in two forms: lender’s insurance and owner’s insurance. Lender’s insurance protects the mortgage lender but not you. Owner’s insurance protects you, the property owner. When buying a quitclaim property, insist on owner’s insurance. This protects your entire ownership interest against title defects and future claims. The premium is typically a one-time fee that never increases, and the protection lasts as long as you own the property.
Common Mistakes That Kill Quitclaim Property Sales
Mistake 1: Failing to do a title search before selling
Many people receive property via quitclaim and assume it’s problem-free. Wrong. The previous owner might not have disclosed liens, unpaid taxes, or judgments. You might be sitting on a property with a $50,000 tax lien you don’t know about. When a buyer’s lender does a search and finds the lien, the deal falls apart. The lender won’t approve a mortgage on a property with outstanding debt. You must do a title search before marketing the property. If problems exist, fix them first.
Mistake 2: Not disclosing the quitclaim deed history to buyers
Some sellers hide the fact that they received the property via quitclaim. They hope buyers won’t notice. This is illegal. Real estate disclosure laws require you to reveal material facts about the property’s title. If you knowingly hide a quitclaim deed and a buyer discovers it after closing, you can be sued for fraud. You can lose the sale price plus damages. Always disclose the deed history upfront. Honest sellers close deals. Sneaky sellers end up in court.
Mistake 3: Using a quitclaim deed to sell when you should use a warranty deed
Some sellers attempt to sell their quitclaim property by also using a quitclaim deed for the new buyer. This is a major mistake. Buyers will demand a warranty deed. They want you to promise you actually own the property and have the right to sell it. If you won’t make that promise (because you received it via quitclaim), you’re screaming that something is wrong. Use a warranty deed to sell. You can promise the title is clear if your title search proved it. If you can’t make that promise, your property isn’t ready to sell.
Mistake 4: Not addressing unpaid taxes or liens before selling
Tax liens and judgment liens survive ownership transfers. If the previous owner owed back taxes, that lien stays attached to the property even after you receive it via quitclaim. The new owner inherits the debt automatically. If taxes remain unpaid, the county can seize and sell the property at a tax auction to recover the money. You must pay off all liens before closing. Yes, it comes out of your sale proceeds. But no buyer will accept a property with outstanding liens.
Mistake 5: Not getting professional legal help
Selling a quitclaim property involves complex title issues. One small mistake—like forgetting to record the deed, misspelling a name, or using incorrect legal property descriptions—can invalidate the entire transaction. You can end up in court for years. Hire a real estate attorney. It costs $500-$2,000 but protects you from liability and ensures the sale closes correctly.
Mistake 6: Misunderstanding mortgage liability after quitclaim
If you quitclaimed property to someone else (like an ex-spouse) but stayed on the mortgage, you remain liable forever. The quitclaim deed didn’t release you from the loan. The person who received the property must refinance into their own name, or the original lender can come after you. Too many people quitclaim properties without addressing the mortgage first, then face years of credit damage and lawsuits. Always refinance or get the new owner to assume the loan in writing with lender approval.
Steps to Successfully Sell a Quitclaim Property
Step 1: Get a comprehensive title search
Hire a title company to search the property records. They’ll investigate decades of ownership history, identify all liens, check for unpaid taxes, and report any claims against the property. Cost: $200-$500. This single step prevents disasters. The title company will provide a detailed report showing exactly who owned the property, what deeds transferred ownership, and what liens or claims currently attach to the title.
Step 2: Resolve any title defects
If the search reveals liens, unpaid taxes, or other problems, fix them before selling. Pay off liens. Settle tax debts. Get the original owner to file deed of reconveyance if necessary. Clear every cloud on the title. This step often takes time because creditors or tax agencies might not respond immediately. Budget several weeks for clearing title defects.
Step 3: Obtain title insurance
Once the title is clean, purchase a title insurance policy. The policy protects future owners and makes your property attractive to buyers and lenders. Cost: $500-$1,500 depending on property value. The title insurance company will commit in writing to defending the property against any future claims about ownership or liens.
Step 4: Disclose the quitclaim deed in writing
Create a disclosure document explaining that you received the property via quitclaim but that a title search proved the property is clear. Provide a copy of the title search results. Be transparent. This documentation transforms a liability into an asset. You’re showing buyers that despite receiving a quitclaim, you’ve done your homework and verified the property is clean.
Step 5: Use a warranty deed for the sale
When you sell, use a warranty deed, not a quitclaim. Promise the buyer that you own the property and have the right to sell it. Your title search and insurance back up that promise. This is the single most important step for successfully selling a quitclaim property. By offering a warranty deed, you’re saying you’re confident enough in your title to guarantee it.
Step 6: Get professional help at closing
Work with a real estate attorney or title company to handle closing. They’ll ensure all documents are correct, deed is recorded properly, and funds transfer correctly. This prevents future disputes. The closing professional will verify that all outstanding liens are paid from proceeds, the deed is executed correctly, and the title company issues its final insurance policy.
Step 7: Provide copies of all title documentation
Give the buyer a copy of your title search, title insurance policy, and any other documentation proving the title is clean. This protects both of you. The buyer can show these documents to their lender, proving that a professional has verified the title is free from defects.
Pros and Cons of Selling a Quitclaim Property
| Advantage | Disadvantage |
|---|---|
| Property can be sold if title is clean | Buyers skeptical due to quitclaim history |
| Already discovered and fixed title problems | Title fixes cost significant money upfront |
| Warranty deed protects buyer and seller | Lower offers than warranty-deed properties |
| Title insurance offsets buyer concerns | Insurance adds cost before listing |
| Clear documentation proves clean title | Sale process takes longer for scrutiny |
| Explains quitclaim story to buyers | Some buyers refuse regardless of proof |
What Buyers Need to Know About Quitclaim Properties
If you’re buying a property from someone who received it via quitclaim deed, understand the risks. The seller is not guaranteeing the title is clean. They’re simply transferring whatever interest they have. If problems exist, they’re your problems now.
Always insist on a warranty deed, not a quitclaim. Ask the seller to explain why they received the property via quitclaim in the first place. Get a title search and purchase title insurance. If the seller won’t provide a warranty deed or won’t allow a title search, walk away. That’s a red flag. Properties using quitclaim deeds for sales (not gifts or family transfers) often have hidden problems the seller is trying to hide.
Special Situations Requiring Extra Caution
Selling property with existing mortgages
If you received a quitclaim property with a mortgage still attached, you cannot simply sell it. The mortgage stays with the property. The new owner inherits the debt unless they refinance. You must address the mortgage before selling. Either pay it off from the sale proceeds or ensure the buyer can refinance into their own name. If you can’t do either, you can’t sell.
Selling inherited property from a quitclaim
If you inherited property and the will or trust used a quitclaim deed, do extra due diligence. Inherited property sometimes has title problems because estate debts existed. Creditors can file claims against the property. Get a title search immediately. If the deceased owner owed money, creditors might try to seize the property to recover the debt.
Selling property previously used in a business or as rental
If the property was a rental or business location, check for mechanic’s liens, contractor liens, or judgment liens filed by former tenants or contractors. These liens follow the property regardless of ownership changes. You must discover and clear them before selling. Contractors who weren’t paid for work on the property can file mechanic’s liens that survive ownership transfers and must be satisfied before you can transfer clear title.
Selling foreclosure or tax-sale properties
Foreclosure and tax-sale properties often come with quitclaim deeds because the title is clouded. You may need to file quiet title action to prove ownership. This court process can take months and costs attorney fees. Do this before selling so you can offer buyers a clear title.
The Bottom Line: When to Use a Warranty Deed Instead
The real truth is that selling a quitclaim property is complicated and risky. If you’re planning to sell, your best option is converting your quitclaim deed into a warranty deed before you list. You can do this through quiet title action or by getting the original owner to sign an updated warranty deed.
If the original owner is dead, missing, or unwilling to cooperate, file a quiet title action. The court process proves you’re the true owner and clears your title. It costs money and takes time, but it’s the only way to guarantee a successful sale.
When selling, always use a warranty deed. Promise the buyer that you own the property and have the right to sell it. Back up that promise with title insurance. This gives buyers the confidence they need to purchase and helps them get financing.
FAQs
Can a bank give me a mortgage on a property I received via quitclaim deed?
No. Most banks refuse mortgages on properties with quitclaim deeds in the chain of title. They see it as a red flag indicating title problems.
Can I sell a quitclaim property if I don’t know the previous owner?
No. You should hire an attorney to investigate the title and possibly file a quiet title action to prove ownership.
Do I need to tell the buyer that I got the property via quitclaim?
Yes. Real estate disclosure laws require you to reveal material facts about the title. Hiding it is fraud.
Can the original owner come back and claim the property after I received it via quitclaim?
Potentially. That’s why title insurance exists. Once you own the property for a certain time period without challenge, most states grant legal protection.
Will my property be worth less because of the quitclaim?
Yes. Properties with quitclaim history typically sell for 5-10% less than comparable properties with warranty deeds.
Can I use a quitclaim deed to sell my property?
No. Buyers will demand a warranty deed. If you can’t provide one, you signal that the title has problems.
What is a cloud on a title?
A cloud on title is any lien, judgment, unpaid tax, or legal claim that makes ownership uncertain or makes the property difficult to sell.
What does a quiet title action do?
A quiet title action is a court process that proves you’re the true owner and eliminates claims from others, clearing your title.
Can I get title insurance for a quitclaim property?
Yes. Title companies will insure quitclaim properties after a title search proves no defects exist.
What happens if I quitclaim property but stay on the mortgage?
You remain liable for the loan even though you don’t own the property. The new owner must refinance or the lender can come after you.
How long does it take to sell a quitclaim property?
Much longer than normal. Expect extra time for title searches, clarifications, and potential quiet title actions.
What is the difference between a quitclaim and a warranty deed?
Warranty deeds guarantee clear title; quitclaim deeds make no promises. Use warranty deeds for sales and mortgages.
Related reading
- Does a Quitclaim Deed Offer Any Guarantees? (With Examples) + FAQs
- Does a Quitclaim Deed Actually Protect You? (w/Examples) + FAQs
- Can a Quitclaim Deed Really Sell Your House? (w/Examples) + FAQs
- Does a Quitclaim Deed Prove Full Ownership? (w/Examples) + FAQs
- Does Quitclaim Deed Void Title Insurance? (w/Examples) + FAQs
- Can a Quitclaim Deed Stop Foreclosure? (w/ Examples) + FAQs
- Tax Consequences of a Quitclaim Deed Explained (w/Examples) + FAQs