Like so many legal questions the immediate answer to this one is: “it depends.” Quit claim deeds are massively overused in Florida, often times for the incorrect reason where a Special Warranty or Warranty Deed (a.k.a. General Warranty Deed or Statutory Deed) are more appropriate. As a preliminary matter it is worth clarifying a common misconception that doc stamps (transfer tax) plays a role in the decision making process when it does not. Any form of transfer may be taxable regardless of the type of deed that is used.

A quit claim deed is a deed that disclaims a persons interest in a property. In the title world we use these deeds to remove any question of ownership from someone that is either appearing on title or who could have a claim to a piece of property. These deeds contain no warranties regarding the status of title and are used for a person to remove any claim they have in a property. The problem here is that the person that is taking title to the property receives no warranties from the Seller and in the event something comes up down the road, the Buyer likely has no protection or right to any claim for protection for that issue. Some examples of when a quit claim deed should be used: following probate to disclaim the interest of an heir or potential heir, to remove a person who was erroneously included as a purchaser on a prior deed.

In contrast, a special warranty deed is used to convey title and limit the protections provided by the grantor to just those items that occurred during the grantor’s ownership of the property. This form of deed is much more appropriate for 99% of situations where a party desires to transfer property outside of a standard closing. Some examples of when a special warranty deed should be used: transferring property to a loved one as a gift, transferring property to a trust, transferring property following a divorce proceeding, removing one owner from title to a property.

Please note that there are of course some exceptions to the above and you should always consult an attorney to provide the specifics of your situation so a determination can be made as to the best form of deed to be used.