Quick Answer: In California, a grant deed transfers property with two implied warranties under Civil Code § 1113. Those warranties state that the grantor has not previously conveyed the same property and that no undisclosed encumbrances exist. A quitclaim deed, however, transfers only whatever interest the grantor currently holds, with zero warranties. For arm’s length sales, always use a grant deed. When handling family transfers, divorces, or trust funding, a quitclaim deed is often appropriate. Understanding the grant deed vs. quitclaim deed distinction in California is essential before any property transfer. 805 Title can guide you through the right choice for your transaction.
Grant Deed vs. Quitclaim Deed in California: Understanding the Core Difference
The California grant deed and the quitclaim deed are the two primary instruments for transferring real property in the state. Choosing the wrong one can cloud your title. It can also complicate your title insurance and create legal headaches long after the transaction closes. Under California Civil Code § 1113, a grant deed carries implied warranties that protect the buyer. A quitclaim deed, however, offers no such protection.
In our experience working with buyers, sellers, and agents across California, the most common misconception we hear is that these two deed types are interchangeable. They are not. Indeed, the differences affect your title insurance policy, your ability to secure financing, and the long-term quality of your title. Selecting the right deed from the start protects everyone involved.
What Is a Grant Deed in California?
A grant deed is a legal document that transfers real property ownership from a grantor to a grantee. Importantly, it includes two implied warranties under California law. Because of those warranties, a grant deed is the standard instrument for nearly every arm’s length real estate sale in California.
What Warranties Does a Grant Deed Include?
California Civil Code § 1113 implies two covenants in every grant deed by operation of law:
- The grantor has not previously conveyed the same property to another person.
- The property is free of encumbrances placed on it by the grantor, except those stated expressly in the deed.
These implied warranties give the buyer meaningful legal protection. Furthermore, if a hidden lien or prior conveyance surfaces after closing, the grantee has legal recourse against the grantor. For this reason, title companies can issue a standard owner’s title insurance policy on grant deed transfers. That policy protects the new owner against covered title defects going forward.
When Is a Grant Deed Used in California?
A grant deed is the appropriate choice whenever money is changing hands between unrelated parties. Lenders also require a grant deed whenever they finance the purchase, or whenever a title insurance policy is necessary at closing. Additionally, grant deeds are used to add a co-owner to title and to convey property to a business entity. Grant deeds also cover transfers of property out of a trust whenever a title policy is needed.
What Is a Quitclaim Deed in California?
A quitclaim deed transfers whatever ownership interest the grantor currently holds in the property. Importantly, it includes no promises or warranties about the quality of that interest. In practical terms, a quitclaim deed says: “I give you whatever I have, if I have anything at all.”
A quitclaim deed is not inherently defective or inferior. However, it is a tool designed for specific circumstances. Specifically, using it outside those circumstances creates real risk for the recipient.
When Is a Quitclaim Deed the Right Choice?
Quitclaim deeds are typically appropriate for non-arm’s-length transfers where the parties already know each other. They also work well when parties have no need for a full title search or when a title search has already taken place. Common situations include:
- Divorce buyouts: One spouse releases their community property interest in the marital home to the other spouse.
- Family gifts: A parent transfers property to a child with no consideration paid.
- Trust funding: A property owner places real estate into their revocable living trust.
- Clearing a title cloud: A person who may have a dormant claim on a property formally releases it.
Because no lender is typically involved in these transfers, the absence of warranties is often acceptable. The California Land Title Association (CLTA) recognizes quitclaim deeds as valid instruments when used appropriately within the chain of title.
Quitclaim Deed Risks: What You Give Up Without Warranties
When you accept a quitclaim deed, you accept the property exactly as it stands. That means any liens, judgments, or encumbrances the grantor may have placed on it transfer to you as well. Moreover, if the grantor did not actually own the property at the time of the transfer, the quitclaim deed conveys nothing to you. The grantee is left with no warranty and no legal recourse against the grantor for undisclosed title defects. Consequently, accepting a quitclaim deed without a prior title search carries significant risk.
How Grant Deed vs. Quitclaim Deed Affects Title Insurance in California
Your choice between a grant deed vs. quitclaim deed in California directly impacts your ability to obtain title insurance. Title insurance protects property owners and lenders against losses from defects in the chain of title. Because a quitclaim deed carries no warranties, title companies must conduct additional underwriting before issuing a policy. Consequently, a property with a quitclaim deed in its recent history requires extra review before a standard policy can be issued.
| Feature | Grant Deed | Quitclaim Deed |
|---|---|---|
| Implied warranties | Yes (CA Civil Code § 1113) | None |
| Standard title insurance | Available | Requires extra underwriting |
| Accepted by mortgage lenders | Yes | Generally not for purchase loans |
| Common use | Arm’s length sales | Family transfers, divorce, trusts |
| Documentary transfer tax | Typically applies | May be exempt (gift, court order, trust) |
Can You Get Title Insurance After a Quitclaim Deed?
Yes, title insurance is still available after a quitclaim deed transfer in many situations. Title companies review the full chain of title and verify that the grantor legitimately held the interest transferred. They may also require an Uninsured Deed Affidavit confirming the transfer was genuine. In our experience working with California buyers, title insurers are generally willing to issue policies on quitclaim transfers when the surrounding title history is clean.
However, whenever a lender participates in the transaction, the lender will almost always require a grant deed for the original purchase. The preliminary title report will flag any quitclaim deed in the recent chain of title as a potential underwriting issue. Your escrow officer must resolve that issue before closing. For a deeper look at what title insurance does and does not protect against, see our guide on title insurance exclusions in California.
Who Pays the Documentary Transfer Tax in California?
Both grant deeds and quitclaim deeds may trigger the documentary transfer tax when recorded with the county recorder. The statewide base rate is $1.10 per $1,000 of consideration paid. Additionally, many California cities charge their own city transfer tax on top of the county rate, so the total amount varies by location.
Certain transfers are exempt from the documentary transfer tax. Specifically, qualifying exemptions include:
- Gifts between family members with no money changing hands
- Transfers to a revocable living trust where the same individual remains the beneficial owner
- Court-ordered conveyances in divorce proceedings
When a quitclaim deed is used for a qualifying exempt transfer, the deed must include a transfer tax declaration signed by the grantor confirming the applicable exemption. Your escrow officer can provide the correct language for your county. For a full breakdown of what buyers and sellers pay at the closing table, see our California closing costs guide.
Frequently Asked Questions About Grant Deed vs. Quitclaim Deed in California
What is the difference between a grant deed and a quitclaim deed in California?
A grant deed transfers property with two implied legal warranties under California Civil Code § 1113: the grantor has not previously sold the same property, and there are no undisclosed encumbrances. A quitclaim deed, however, transfers only whatever interest the grantor holds, with no warranties at all. For most grant deed vs. quitclaim deed decisions in California, the right choice depends on whether the parties deal at arm’s length and whether a title insurance policy will be involved.
Does a quitclaim deed give you clear title in California?
Not necessarily. A quitclaim deed transfers only the interest the grantor actually possesses at the time of the transfer. If the grantor held clean, unencumbered title, the grantee receives the same. However, if there are hidden liens or prior claims, the quitclaim deed transfers those problems along with the property. A thorough title search and an owner’s title insurance policy provide the verification and protection that a quitclaim deed alone cannot offer.
Can I use a quitclaim deed to add my spouse to the title in California?
Yes. A quitclaim deed is commonly used to add a spouse to a property title in California, particularly because no money is changing hands. However, many title companies and lenders prefer a grant deed for this purpose because it carries legal warranties. Adding a co-owner also changes the vesting structure of the property. That change may affect your title vesting options in California and your estate planning goals.
Why won’t a mortgage lender accept a quitclaim deed for a purchase loan in California?
Lenders require grant deeds for purchase transactions because a grant deed provides the implied warranties that allow a title company to issue a lender’s title insurance policy. Without that policy, the lender has no protection against prior claims on the property. A quitclaim deed does not provide the warranty chain that lenders require. Learn more about the difference between an owner’s policy and a lender’s title insurance policy.
Is a quitclaim deed valid in California even if the grantor did not own the property?
Technically, yes. A quitclaim deed is legally valid even if the grantor holds no interest in the property. However, if the grantor had no ownership interest, the deed conveys nothing to the grantee. This is precisely why accepting a quitclaim deed without a prior title search carries significant risk. A professional title search confirms whether the grantor actually holds the interest they are purporting to transfer.
How does the grant deed vs. quitclaim deed choice affect a California divorce settlement?
In a California divorce, a quitclaim deed is the standard instrument for one spouse to release their community property interest in the family home. Both parties must have the deed notarized, and the recording party must file it with the county recorder to update the public record. After recording, the retaining spouse should consult with a title company about whether a new owner’s title insurance policy is needed. Specifically, that policy addresses any title clouds arising from the transfer and establishes clean title going forward.
Work With a California-Licensed Title and Escrow Company
Whether you are closing a traditional sale with a grant deed or navigating a family transfer with a quitclaim deed, having an experienced title and escrow team on your side matters. At 805 Title, we are a California-licensed title and escrow company serving buyers, sellers, and real estate agents across the entire state of California. Our team has deep roots in Ventura County and the Central Coast. We also handle transactions throughout Los Angeles, Santa Barbara, Kern, and all California counties.
Our team reviews the full chain of title, advises on the correct deed type for your situation, and coordinates with your lender. Additionally, every transaction comes with an owner’s title insurance policy that protects you long after closing. Furthermore, if you are unsure whether a grant deed or a quitclaim deed is right for your transaction, our escrow officers are ready to walk you through your options.
Explore our homebuyer services or open an order with 805 Title today. Let’s connect.