Illinois Quitclaim Deed Form

What is an Illinois Quitclaim Deed Form?

An Illinois quitclaim deed form is a special type of deed used to transfer Illinois real estate when the transferor does not wish to provide the transferee with a warranty of title. The transferee receives whatever ownership interest the transferor has (if any), but the transferor does not guarantee that the deed transfers good, clear title to the property.¹

The transferee (the new owner) who takes title through a quitclaim deed bears the risk of any problems with the property’s title. Possible title problems could include undisclosed liens, outstanding assessments or property taxes, or errors in earlier deeds. The new owner has no right to sue the transferor under a quitclaim deed if a title problem is discovered after the deed.

Other Names for an Illinois Quitclaim Deed Form

Illinois law uses the name quitclaim deed for a deed that transfers real estate with no warranty of title. The name can also be written as quit claim deed (with a space), and the word quitclaim is also a verb—as in, the current owner quitclaims (or quit claims) the property to the new owner. The term quickclaim deed is sometimes erroneously used instead of quitclaim deed, but there is no such thing as a quickclaim deed.

Although most other states use the name quitclaim deed, there are a few states that use alternate names for deeds that transfer property without a warranty. Other names include:

• Release deed;
• No-warranty deed or non-warranty deed;
• Deed without warranty; and
• Bargain-and-sale deed without covenant.

How do Illinois Quitclaim Deed Forms Relate to Other Forms of Deeds?

The distinguishing feature of an Illinois quitclaim deed form is the absence of a warranty of title. When a transferor conveys property by quitclaim deed, he or she makes no guarantee about the status of the property’s title or whether he or she actually owns it. The transferee receives whatever interest the transferor has and assumes the risk of any problems with the property’s title. The transferor is not legally responsible if the quitclaim deed does not pass valid ownership of the property.

The lack of warranty is what distinguishes quitclaim deeds from Illinois’ two other main types of deeds for transferring real estate to a new owner.

Illinois Quitclaim Deeds Compared to Warranty Deeds

An Illinois warranty deed form transfers real estate with a complete warranty of title. The warranty extends through the property’s entire ownership history and is only limited by exclusions expressly written in the deed.³

Warranty deeds provide the new owner the strongest protection of Illinois’ deed forms. Where a quitclaim deed places all risk of title problems with the transferee, a warranty deed keeps the risk with the transferor.

Illinois Quitclaim Deeds Compared to Special Warranty Deeds

An Illinois special warranty deed form transfers property with a limited warranty of title (also called a special warranty). The current owner guarantees a good title with no title problems caused or allowed by the current owner. He or she also promises to be legally responsible for—and to defend the property’s title against—any third-party claims derived from the grantor’s ownership of the property.⁴

A special warranty deed effectively splits the risk of title problems between the current owner and the new owner. The current owner is responsible for issues that arose while he or she held title, and the new owner is responsible for anything else. Special warranty deeds offer a middle ground between the strong grantee protection of warranty deeds and the lack of protection of quitclaim deeds.

Example: Ashley signs a deed that transfers real estate to Brett. After the deed, Brett learns that the IRS placed a lien on the property due to Ashley’s unpaid taxes. The tax lien means that Brett does not have clear title to the property. If Brett took title through a warranty deed or a special warranty deed, Brett could sue Ashley for the cost of removing the undisclosed lien. If Brett acquired the property through a quitclaim deed, though, Brett has no legal claim against Ashley under the deed.

Title Insurance and Illinois Quitclaim Deeds

An Illinois quitclaim deed provides the new owner with no protection against title problems. The new owner runs the risk of substantial financial loss if there ends up being a problem with the property’s title. An owner can limit exposure to potential risk by purchasing a title insurance policy for the property.

Title insurance is an insurance contract that covers financial losses caused by a problem with the property’s title.⁵ In exchange for a premium payment, the title insurance company contractually agrees to compensate the insured person—typically the owner or a mortgage lender—if a title problem emerges. Title insurance may also cover the legal costs of defending the owner’s title against adverse claims.

Quitclaim Deeds and Other Illinois Deeds Used in Estate Planning

The name quitclaim deed indicates only that the deed passes the grantor’s interest in the real estate with no warranty of title. Illinois recognizes other types of deeds with names that are not based on the deed’s warranty. For example, estate-planning deeds are named for the legal approaches they use to avoid probate. Two of the most common Illinois estate-planning deeds are called life estate deeds and transfer-on-death (TOD) deeds.

Illinois Transfer-on-Death Deed

An Illinois transfer-on-death deed—technically called a transfer-on-death instrument in Illinois statutes—names a beneficiary who takes title automatically without probate when the current owner dies.⁶ The owner keeps all rights in the property for as long as he or she is still living.⁷

Illinois Life Estate Deed

An Illinois life estate deed works by dividing ownership into a current, lifetime interest (the life estate) and a future right (the remainder) that gives title to the interest holder when the life estate ends. An owner often reserves the life estate to himself or herself and gives the remainder to a family member—allowing the owner to keep the property for life and transfer it to the remainder beneficiary outside probate at death.

The name life estate deed has nothing to do with the deed’s warranty. An Illinois life estate deed can convey property with or without a warranty of title. This means that the same deed may be both a life estate deed and a quitclaim deed. On the other hand, an Illinois transfer-on-death instrument can never provide a warranty of title, so an Illinois deed cannot be both a quitclaim deed and a transfer-on-death deed.¹⁰

Common Uses of Illinois Quitclaim Deed Forms

Because Illinois quitclaim deed forms provide no warranty of title, they are frequently used when the parties to the deed have a preexisting relationship. This type of transfer might be between spouses or other family members, between former spouses in a divorce, between friends, or between business partners—especially if the new owner gives no consideration (i.e., the property is a gift).

Quitclaim deeds may also transfer title when actual control of the property is unchanged—for example, a transfer to a living trust or to an LLC the property owner controls. However, special warranty deeds are sometimes preferred in these contexts, as they may help to maintain continuous title insurance coverage. There is usually no additional risk to the transferor due to the transferor’s interest in the trust or LLC.

Quitclaim deeds are relatively uncommon when property is sold to an unrelated party. It is customary for the seller to provide at least a limited warranty of title when the buyer is paying fair value for the property. This is not always a requirement, though—especially when title insurance will supplement or replace the seller’s warranty.

How to Create an Illinois Quitclaim Deed

Illinois’ real estate laws include a statutory form for creating quitclaim deeds.¹² The model language provides in part:

The grantor (here insert grantor’s name or names and place of residence), for the consideration of (here insert consideration), convey and quit claim to (here insert grantee’s name or names) all interest in the following described real estate (here insert description), situated in the County of …., in the State of Illinois.

The statutory format has useful vesting language and omits any warranty or covenants of title. The form addresses some of Illinois’ deed requirements—such as a statement of consideration and a legal description of the property—but by itself does not include all necessary elements for a valid and recordable deed. A quitclaim deed must also be correctly formatted, signed, and notarized, and it must contain (among other things) a tax address, the document preparer’s name, and the appropriate transfer tax information. If the deed passes title to multiple new owners, it must identify the co-ownership form they will use.

A quitclaim deed form must carefully track the state-specific requirements and transfer the property under the parties’ agreed terms. Many fill-in-the-blank deed forms use generic deed templates that do not include the appropriate state’s language. An Illinois quitclaim deed should say that the grantor “conveys and quitclaims” the property to the new owner. This language distinguishes quitclaim deeds from warranty deeds and special warranty deeds—which say that the grantor “conveys and warrants” the property to the new owner.

Third parties reviewing a deed (including title insurance companies) will expect to see the elements for a valid deed. Failure to meet these requirements could result in an unmarketable title—which means that legal action is needed before a title insurance company will write a title policy on the property. An unmarketable title prevents a sale to a third party and substantially reduces the value of the property until the situation is corrected.

1. 765 ILCS 5/10.
2. 765 ILCS 5/9.
3. 765 ILCS 5/9.
4. 765 ILCS 5/8.
5. 215 ILCS 155/3(1.5).
6. 755 ILCS 27/20.
7. 755 ILCS 27/60.
8. 755 ILCS 27/25.
9. First United Pres. Church v. Christenson, 64 Ill. 2d 491 (Ill. 1976).
10. 755 ILCS 27/65(c).
11. 765 ILCS 1005/1; 1005/1c.
12. 765 ILCS 5/10.