PSI Oklahoma Real Estate Practice Test

What is the legal implication of a quitclaim deed?

1. The grantor ensures the title is clear

2. The grantor transfers whatever interest they have, if any

3. The grantor offers full warranty of the title

4. The grantor retains rights to the property

The correct answer is: The grantor transfers whatever interest they have, if any

The legal implication of a quitclaim deed is that the grantor transfers whatever interest they have in the property, if any. This means that the grantor does not guarantee that they hold a clear or valid title to the property; instead, they are simply conveying their existing rights or interests. Consequently, if the grantor has no interest in the property, no valid title is transferred to the grantee. This type of deed is often used in situations where the parties know each other and trust is established, such as transfers between family members or in divorce settlements. The nature of a quitclaim deed makes it distinct from other types of deeds, such as warranty deeds, which do provide assurances about the clarity and validity of the title being transferred. Therefore, it is crucial for grantees to conduct thorough due diligence before accepting a quitclaim deed, as they assume the risk that the grantor may not actually have any legitimate claim to the property being conveyed.