In the context of real property, a quitclaim deed transfers or disposes only the interest that the grantor/owner has in the property (Hinkel, 2011). This means that whatever title the grantor has at the time of transfer, they pass it to the grantee. In such regard, in the event that at the time of transfer the grantor does not have title to the land, should the grantor later get the title to the property the grantee cannot claim the property. Additionally, a quitclaim deed does not have warranties of title and is transferred free of encumbrances.
Dr. Patel might see several problems with the quitclaim deed. One, it is not a guarantee that my grandmother or I own the property. Having gone through many hands in the family, Dr. Patel would not be sure of ownership or the type of interest I have on the property. Secondly and related to the foregoing, should it turn out that I do not own the land or have any interest in it, Dr. Patel would have no legal redress since the deed does not have a warranty of title. Thirdly, Dr. Patel would not be certain whether there are other encumbrances (such as other mortgages) on the property, or their status, which might be detrimental in light of the principle of priorities.
A warranty deed transfers the interest the grantor has in the property. It further guarantees that the grantor has title to the property, and should the title be defective, the grantee has legal recourse against the grantor. It also discloses all the encumbrances in the property such as charges, mortgages, and liens.
Dr. Patel would have no problem with a warranty deed for several reasons. One, it guarantees that I have title to the property and should the title be imperfect, Dr. Patel will not suffer any loss as I would be liable. Secondly, being aware of the encumbrances in the property, Dr. Patel will be in a position to determine whether to lend the money or not. Dr. Patel would also know the rank of the mortgage should there be other encumbrances. Ideally Dr. Patel would be content with a warranty deed as it will safeguard the money.
References
Hinkel, D. F. (2011). Essentials of Practical Real Estate Law (5th Edition). NY: Delmar. Print.
