Two deed names show up constantly in California closings: grant deed and quitclaim deed. They are not interchangeable. Understanding the difference in Grant Deed vs Quitclaim Deed transactions is essential for real estate workflow, though which instrument the parties sign is a legal decision for them and their attorney, not for the agent, lender, or escrow officer.
Grant Deed, in Plain Terms
A grant deed is the instrument used in most arm’s-length sales. Under California law it carries limited implied covenants by the person signing: they have not already conveyed that interest to someone else, and they have not burdened the property themselves in a way that is undisclosed in the deed. That is not a promise the title is perfect. It is not a substitute for a preliminary report or a title policy.
Quitclaim Deed, in Plain Terms
A quitclaim deed passes whatever interest the signer has, if any, and makes no covenants about ownership or liens. Family transfers, marital changes, trust funding, and corrective recordings often use one because the parties already know each other. However, “often used” is not necessarily the right choice for every property transfer.
Side-by-side (file language, not advice)
| Point | Grant deed | Quitclaim deed |
| Covenants from the signer | Limited, implied by statute | None |
| Typical setting | Sale for value | Intra-family, entity/trust, or corrective work |
| Lender / underwriter comfort | Common on sale files | Reviewed case by case |
| Title search / policy | Separate from the deed | Separate from the deed |
A deed type does not order a title search and does not create title insurance. Those are separate decisions.
What This Means for the Opening Package
When reviewing Grant Deed vs Quitclaim Deed choices for your transaction package, keep these scenarios in mind:
- Sale with a Lender: Expect a grant deed drafted to match vesting and the contract.
- Trust, Divorce, or Gift: The parties’ attorney should prepare the deed and any transfer-tax or reassessment paperwork.
- Adding or Dropping a Spouse: The same rule applies: consult legal counsel first, then proceed to escrow.
- Property Sales: “Quick and easy” is not a reason to pick a quitclaim deed on a sale to a stranger.
Liens and other recorded matters do not vanish because someone used a grant deed. They also do not appear only because someone used a quitclaim deed. The prelim and the policy, if issued, speak to recorded title, not the nickname on the deed.
Recording Requirements in California
To record in California, a deed generally must be signed and acknowledged (notarized) and accepted by the county recorder, with transfer tax and other county requirements satisfied. Recording gives public notice. Validity between the two parties is a legal question. Unrecorded instruments can still create problems on a later sale or refinance.
What NESI Does
We take the deed the parties or their counsel provide, match it to vesting and escrow instructions, coordinate notarization and recording, and handle title and escrow on one file. We do not recommend a deed type, draft legal conclusions onto a form, or tell an agent what to advise a client.
Call or text when vesting is messy: trust, entity, divorce, or a name that does not match the prelim. Residential, commercial, and refi.
Short FAQ
Does a quitclaim wipe liens?
No. Deed type does not pay or release a lien.
Must every sale use a grant deed?
Sales usually do. The contract and the parties’ attorney control.
Can a stranger be deeded by quitclaim?
It happens. Buyers and lenders often will not accept that risk without other protection. That is their call.
Do both types get recorded the same way?
Both are recorded as deeds if the county accepts them. Requirements are set by the recorder, not by this article.
This article is general information only. It is not legal, tax, or insurance advice and is not a commitment to issue title insurance or close any transaction. Deed selection, covenants, recording, transfer tax, and reassessment consequences require the parties’ own qualified California attorney and, where tax is involved, a CPA. NESI Title and Escrow Company does not choose or recommend a form of deed. Coverage, if issued, is governed solely by the policy, endorsements, and underwriting. NESI assumes no liability for reliance on this content. Services are provided subject to applicable law, underwriting, and written escrow instructions.
Open a file: nesititle.com
