What risks am I taking if I accept a quitclaim deed instead of a warranty deed? – North Carolina

Short Answer

In North Carolina, a quitclaim deed transfers only whatever ownership interest the former spouse actually has—if any—and it generally comes with no promises about title. A warranty deed, by contrast, typically includes promises (warranties) that the grantor owns the property and that the title is not burdened by undisclosed problems. The main risk of a quitclaim deed is that it can leave the receiving spouse holding the property subject to title defects, liens, boundary issues, or even a partial interest, with limited ability to demand the former spouse fix it.

Understanding the Problem

Under North Carolina real estate law, the key question is what legal protection comes with the deed used to move a former spouse’s interest into one spouse’s name. Can a former spouse transfer ownership with a quitclaim deed, and what happens if there are title problems, old liens, or questions about whether the former spouse truly owns the interest being transferred? The practical issue is not just getting a signed deed, but getting a transfer that is reliable for future refinancing, selling, or insuring title.

Apply the Law

North Carolina recognizes different deed types that transfer real property with different levels of protection. A quitclaim deed generally transfers the grantor’s interest “if any,” without title promises. A warranty deed generally includes enforceable promises about title (often called covenants of title), which can give the grantee a claim against the grantor if the title turns out to be defective. Regardless of deed type, the transfer is typically recorded with the Register of Deeds in the county where the property is located so the public record shows the change in ownership.

Key Requirements

What interest is actually being transferred: A quitclaim deed passes only the former spouse’s actual ownership interest (which could be full, partial, or none), while a warranty deed is usually used when the grantor is willing to stand behind the title being conveyed.
Whether the deed includes title promises: A quitclaim deed typically includes no promises about ownership, liens, or other title defects; a warranty deed typically includes promises that can be enforced if a title problem later appears.
Recording in the correct county: To protect the transfer in the public record, the deed is typically recorded in the office of the Register of Deeds for the county where the property sits.

What the Statutes Say

N.C. Gen. Stat. § 105-317.2 (Report on transfers of real property) – Lists information that must be included in deeds conveying property for appraisal/tax administration purposes and states that noncompliance does not affect the validity of a duly recorded deed.

Analysis

Apply the Rule to the Facts: Here, a former spouse is offering to sign a quitclaim deed so the property can be transferred into the receiving spouse’s name. A quitclaim deed can be enough to transfer whatever interest the former spouse has, but it does not usually protect the receiving spouse if a title issue later surfaces (for example, an old judgment lien against the former spouse, an unreleased deed of trust, or a gap in the chain of title). A warranty deed is often preferred when the goal is not only transfer, but also added protection if the title is not as clean as expected.

Process & Timing

Who files: Typically the receiving spouse (or closing attorney) records the signed deed. Where: The Register of Deeds in the North Carolina county where the property is located. What: A properly executed deed (quitclaim or warranty) that includes the required deed transfer information. When: Record as soon as practical after signing to reduce the risk of later-recorded claims creating complications.
Title follow-up: Confirm how the property is currently titled and whether there are recorded liens (such as deeds of trust, judgment liens, or other encumbrances). If the property will be refinanced or sold soon, a title search and title insurance review often becomes the practical “deadline driver,” because lenders and buyers usually require clear, insurable title.
End result: The recorded deed updates the public record to show the receiving spouse as owner (or as the owner of the interest conveyed), which is important for future transactions and for avoiding disputes about who owns what.

Exceptions & Pitfalls

A quitclaim deed does not clear liens: If there is a deed of trust (mortgage) or other lien already recorded, a quitclaim deed usually does not remove it. Title can still be burdened even after the former spouse signs.
“No warranties” can matter later: If a title defect appears after a quitclaim deed, the receiving spouse may have limited leverage to require the former spouse to fix it, because the deed typically did not include promises about title.
Partial-interest risk: If the former spouse owns only a partial interest (or if the prior deed was defective), the quitclaim deed transfers only that partial interest (or nothing), which can create problems when trying to refinance or sell.
Divorce paperwork mismatch: If a separation agreement or court order requires a particular type of deed (or requires the grantor to deliver “good title”), using a quitclaim deed may not satisfy that obligation and can trigger enforcement issues in family court.
Recording and form errors: A deed that is signed but not recorded (or recorded with errors) can create avoidable title problems. North Carolina Register of Deeds offices can reject documents that do not meet formatting or content requirements.

Conclusion

In North Carolina, accepting a quitclaim deed usually means accepting a transfer with minimal protection: it conveys only whatever interest the former spouse actually has and typically includes no promises that the title is clear. A warranty deed generally provides stronger protection because it typically includes enforceable title warranties. The most important next step is to confirm current title and liens and then record the correct deed with the Register of Deeds in the county where the property is located as soon as practical after signing.

Talk to a Real Estate Attorney

If a former spouse is offering a quitclaim deed and the goal is a clean, reliable transfer into one name, a North Carolina real estate attorney can help confirm the current title, identify lien or ownership issues, and prepare the right deed for the situation. 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.