A quitclaim deed (or quit claim deed) is a document that transfers or conveys any ownership the person making the deed (the grantor) has in the real property (real estate) identified in the deed—but does not guarantee or warrant that the grantor does in fact have any ownership in the real estate, or that the title (ownership) is free from other claims of ownership, such as liens and encumbrances. Because the grantor makes no promises or warranties regarding the quality of the title—whether the grantor has an ownership interest to convey and whether there on liens or encumbrances on the property—it is sometimes called a non-warranty deed. In contrast, warranty deeds do provide such warranties and offer the highest level of protection to the buyer or transferee.
Because quitclaim deeds offer the least amount of protection to the buyer regarding the true ownership (title) of the real property they are often used to transfer title to real estate between family members, or between spouses dividing marital property in a divorce. Quitclaim deeds are also used to cure or fix a defect or cloud in the recorded title history of certain real property—such as a missing signature of a spouse, a failure to properly record or file documents, or a misspelled name. Quitclaim deeds are as effective as warranty deeds, but only if the title is good.
In Montana (MT), a quitclaim deed is a legal instrument used to transfer a grantor's interest in real property without any warranty of title. The grantor does not guarantee that they hold valid ownership or that the property is free from other claims, such as liens or encumbrances. Quitclaim deeds are commonly utilized for property transfers between family members, during the division of property in a divorce, or to clear title defects. Although quitclaim deeds do not offer the buyer protection regarding the validity of the title, they are legally binding and can effectively transfer ownership if the grantor's title is clear. It's important to note that while quitclaim deeds are simple and involve less due diligence compared to warranty deeds, they carry a higher risk for the grantee (buyer or transferee) because there are no guarantees about the quality of the title being transferred. In Montana, as in other states, the quitclaim deed must be properly executed, delivered, and accepted by the grantee, and should be recorded with the appropriate county recorder's office to provide notice of the transfer.