Illinois Real Estate Law - Quitclaim Deed Vs. Warranty Deed

Common Information

The Conveyance Act requires any deed for Illinois property to contain the name or names and addresses of the selling party or grantors and buying party, the grantees. The document must also reference the consideration given for the property, as well as a legal description of the property being transferred.

A quitclaim deed lists the seller's ownership of the property being transferred as "all interest in" the property. The buyer receives title to the interest the seller had in the property, whatever the interest may be. If the seller had a 10 percent interest, the buyer purchased a 10 percent interest.

A warranty deed provides assurance of the seller's ownership interest in the property.Real Estate image by Stephen VanHorn from Fotolia.com

A warranty deed delivers ownership to the property along with certain guarantees on behalf of the seller. The seller represents that he is the legal owner of the property and has the right to sell it, that he satisfied all liens against the property, and that he is delivering a clear title which he will help to defend, if necessary.

Within a family, a quitclaim deed can transfer ownership interest between family members. In a divorce or estate settlement, the quitclaim deed provides a quick way to clear one or more owners from title.

For buyers who are not related to the seller, a warranty deed delivers a much stronger guarantee of the value received. In Illinois, the seller pays for a title insurance policy covering the buyer's interest in the event of a claim against the title. The insurance company researches the title prior to closing, assuring the buyer of a valid purchase.

A quitclaim deed executed between non-family members constitutes a risk for the buyer. The seller's failure to guarantee title to the property may mean that he has no right to sell it. The seller delivers the interest he has in the property even if he has no legal interest in the property.

When the buyer receives a title insurance policy along with the deed, he knows the condition of the title and has an avenue of monetary relief in the event of a surprise challenge to the title.