What is the difference between a general warranty deed and a quitclaim deed, and which should I use to transfer my property? – North Carolina

Short Answer

In North Carolina, a general warranty deed guarantees clear title against all claims, past and present, and obligates the seller to defend title. A quitclaim deed gives whatever interest the grantor has, if any, with no title promises. For ordinary sales to a third-party buyer (especially with a lender), a general warranty deed is usually expected. For gifts, family transfers, or fiduciary transfers (like from an estate), a quitclaim or limited-warranty deed is often more appropriate.

Understanding the Problem

The decision point is which deed form a North Carolina owner should use to transfer real estate: a general warranty deed or a quitclaim deed. The core choice turns on the role (individual seller, family transferor, or fiduciary), the action (conveying title), and the context (arm’s-length sale versus gift). The timing that matters is recording the deed promptly to protect the transfer.

Apply the Law

Under North Carolina law, deed type controls the scope of the grantor’s title promises (covenants of title). A general warranty deed carries broad covenants that run to the grantee and future owners, while a quitclaim deed conveys only the grantor’s present interest without any covenants. Deeds must be properly executed, notarized, and recorded in the county where the land lies; transfer tax is typically paid at recording. The Register of Deeds applies document‑format standards, and timely recording protects priority.

Key Requirements

• Deed type and covenants: General warranty = full title promises and defense; quitclaim = no promises, “as is” interest only.
• Execution formalities: Grantor signs before a notary; include legal description and grantee information; meet page and margin standards.
• Authority and signatures: All record owners must sign; both spouses must sign to convey property held by the entirety.
• Recording to protect priority: Record in the county where the property is located; unrecorded deeds risk loss of priority to later purchasers or lien creditors.
• Taxes and fees: Real estate excise tax is typically due at recording, plus recording fees; requirements can vary by county.

What the Statutes Say

• North Carolina Gen. Stat. § 47-18 (Connor Act) – A deed must be recorded to be valid against lien creditors or purchasers for value.
• North Carolina Gen. Stat. § 105-228.30 (Real estate excise tax) – Transfer tax generally applies to deed recordings, collected by the Register of Deeds.
• North Carolina Gen. Stat. § 39-13.6 (Tenancy by the entirety) – Married couple’s entireties property requires both spouses to join to convey.
• North Carolina Gen. Stat. § 161-14 (Registration; instrument standards) – Register of Deeds recording standards, including margin and format requirements.

Analysis

Apply the Rule to the Facts: In a typical third‑party sale, a general warranty deed aligns with market expectations because lenders and title insurers often require full covenants. For an intrafamily gift or corrective transfer, a quitclaim deed can be sufficient because no title promises are intended. When a personal representative of an estate conveys, it is common to avoid broad warranties and use a limited‑warranty or no‑warranty deed to prevent estate‑level exposure.

Process & Timing

1. Who files: The grantor (or the closing attorney/settlement agent). Where: County Register of Deeds where the property is located in North Carolina. What: A properly drafted deed that meets instrument standards (e.g., 3‑inch top margin on first page), includes a full legal description, and bears a proper notarial acknowledgment. When: Record immediately at closing to preserve priority under the Connor Act; excise tax and recording fees are paid at recording.
2. Register of Deeds review and indexing typically occurs the same day or within a few business days; eRecording is available in many counties, but procedures vary.
3. Once recorded, the Register returns the deed to the designated address; the grantee should retain the recorded original or copy and confirm indexing.

Exceptions & Pitfalls

• Lenders and title insurers often reject quitclaim deeds in arm’s‑length sales; a general warranty deed is commonly required.
• Personal representatives and similar fiduciaries generally should not give general warranties; a limited‑warranty or no‑warranty deed is typical to avoid personal or estate liability.
• If the property is held by the entirety, both spouses must sign to convey; failure to join a spouse can void marketability.
• Deeds do not erase liens, taxes, or HOA assessments of record; those must be paid or addressed at closing.
• Notary or formatting errors (missing acknowledgment, margins, return address) can delay recording; follow instrument standards to avoid rejections.

Talk to a Real Estate Attorney

If you’re dealing with deed selection for a North Carolina property transfer, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.