Sandra is a licensed Missouri real estate broker helping clients understand when a quitclaim deed is an appropriate instrument to use in a property transfer. She correctly explains several valid uses of a quitclaim deed to her clients. Which of the following is NOT a typical appropriate use of a quitclaim deed in Missouri?
Correct Answer
C) Conveying full marketable title with maximum warranty protection to an arm's-length buyer
Conveying full marketable title with maximum warranty protection to an arm's-length buyer is NOT an appropriate use of a quitclaim deed. A quitclaim deed contains no covenants of warranty and transfers only whatever interest — if any — the grantor holds at the time of execution. It provides zero title protection to the grantee. In a standard arm's-length Missouri residential sale, a general warranty deed is the appropriate instrument because it guarantees title against all defects and gives the buyer the full range of title covenants. Using a quitclaim deed in this context would leave the buyer without any recourse against the seller for title defects.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
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