California Grant Deed vs Quitclaim Deed Explained
Understanding Property Deeds in California
When property changes hands in California, a deed is the legal document that makes it official. But not all deeds are created equal. The type of deed determines what protections the new owner receives.
The two most common deeds in California are the grant deed and the quitclaim deed. Choosing the wrong one can cost you thousands of dollars or leave you with no legal recourse if something goes wrong.
As a notary who works with real estate documents throughout the Sacramento area, I help clients understand these differences every week. Here is what you need to know.
What is a Grant Deed?
A grant deed is the standard deed used for most real estate transactions in California. When a seller signs a grant deed, they make two implied promises:
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They have not already transferred the property to someone else. The seller guarantees that the property has not been secretly sold or given away to another party.
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There are no hidden encumbrances. The seller guarantees that they have not placed any undisclosed liens, easements, or restrictions on the property during their ownership.
These two guarantees give the buyer meaningful legal protection. If either promise turns out to be false, the buyer can take legal action against the seller.
What is a Quitclaim Deed?
A quitclaim deed transfers whatever interest the grantor has in a property. The critical difference: the grantor makes zero promises about what that interest actually is.
The grantor could own the property free and clear. Or they could own nothing at all. A quitclaim deed does not distinguish between these scenarios. It simply says: "Whatever I have, I am giving to you."
There are no warranties. No guarantees. No legal recourse if the title turns out to have problems.
Side by Side Comparison
| Feature | Grant Deed | Quitclaim Deed |
|---|---|---|
| Title warranty | Yes (limited) | None |
| Protection against hidden liens | Yes (during grantor's ownership) | None |
| Common use | Property sales | Family transfers, trusts |
| Title insurance available | Yes | Rarely |
| Recording required | Yes | Yes |
| Notarization required | Yes | Yes |
| Cost to record | Same | Same |
When to Use a Grant Deed
Standard Home Sales
If you are buying or selling a home through a traditional transaction, a grant deed is the correct choice. This is what title companies, escrow officers, and real estate attorneys expect to see.
Seller Financed Transactions
When a seller carries the financing, the buyer still deserves the protections of a grant deed. The warranties ensure the buyer is getting clean title to the property.
Sales Between Acquaintances
Even if you know the seller personally, a grant deed provides important protections. Friendships do not guarantee clean title. Past liens, unpaid contractor bills, or IRS claims could surface after the transfer.
When to Use a Quitclaim Deed
Divorce Property Transfers
During a divorce settlement, one spouse typically quitclaims their interest to the other. Since both parties are already familiar with the property and its history, the lack of warranties is acceptable.
Transferring Property to a Living Trust
Moving your home into your own living trust is one of the most routine uses of a quitclaim deed. You are transferring the property to yourself (as trustee), so warranties are unnecessary.
Removing an Ex from the Title
After a divorce or separation, a quitclaim deed is the cleanest way to remove the former partner from the property title.
Gifts Between Family Members
Parents gifting property to children or transfers between siblings are typically handled with quitclaim deeds, though a grant deed can also be used in these situations for added protection.
Clearing Title Defects
If a title search reveals an old name on the property that should not be there, a quitclaim deed from that person can resolve the issue.
Common Mistakes When Choosing a Deed Type
Using a Quitclaim Deed for a Purchase
This is the most costly mistake I see. Buyers who accept a quitclaim deed in a purchase transaction have no legal protection if the seller did not actually own the property or if there are existing liens. Always insist on a grant deed when purchasing property.
Ignoring the Mortgage
A quitclaim deed transfers ownership interest, but it does not affect the mortgage. If you quitclaim your interest in a property but your name is still on the mortgage, you are still responsible for that loan. Similarly, adding someone to the title does not add them to the mortgage.
Most mortgages contain a "due on sale" clause that could be triggered by a deed transfer. Consult an attorney before transferring any property with an existing loan.
Forgetting to Record
Both grant deeds and quitclaim deeds must be recorded with the county recorder to be effective against third parties. In Sacramento County, the Recorder's office is at 600 8th Street. An unrecorded deed is valid between the parties but offers no protection against someone else claiming the property.
Skipping the Preliminary Change of Ownership Report
California requires a Preliminary Change of Ownership Report (PCOR) to be filed with any deed transfer. Missing this form results in a $20 penalty and potential delays.
Notarization Requirements for Both Deeds
California law requires that the grantor's signature on any deed be notarized before it can be recorded. This applies to both grant deeds and quitclaim deeds.
The notarization process is the same for both:
- The grantor must appear in person before a notary public
- Valid government issued photo identification is required
- The grantor must sign in the notary's presence
- The notary verifies identity and willingness to sign
The grantee (the person receiving the property) does not need to be present or sign the deed.
Tax Implications to Consider
Both types of deeds can trigger tax consequences:
- Property tax reassessment under Proposition 19. Transfers between spouses are generally exempt. Some parent to child transfers may qualify for exclusions.
- Documentary transfer tax applies in most cases. Sacramento County charges $1.10 per $1,000 of property value. The City of Sacramento adds an additional $2.75 per $1,000.
- Capital gains considerations differ depending on whether the transfer is a sale, gift, or inheritance.
These are significant financial decisions. Consult a real estate attorney or tax professional before choosing a deed type.
Bilingual Real Estate Notary Services
Real estate transactions involve complex legal terminology. For Spanish speaking families in Sacramento, understanding every detail is essential. I provide bilingual notary services in English and Spanish so all parties can feel confident about what they are signing.
For more details about real estate notarization, visit my real estate notary page.
Need a Notary for a Deed Transfer?
I am Gina Gonzalez, an NNA certified and insured mobile notary serving the greater Sacramento area. My background as a former Legal Advisor for the Regional Government of Cusco, Peru, gives me professional legal experience that I bring to every appointment.
I travel to you. Whether you are in Sacramento, West Sacramento, Elk Grove, Roseville, Folsom, Rancho Cordova, Citrus Heights, Davis, Woodland, Lincoln, or Auburn, I can meet you at a location that works for you.
Available 7 days a week, 7 AM to 9 PM. California notary fee: $15 per signature.
Call (415) 948-9967 or book online to schedule your deed notarization.
This post is for informational purposes only and does not constitute legal advice. Consult a real estate attorney for guidance specific to your situation.