Michigan Quitclaim Deed Form

What is a Michigan Quitclaim Deed Form?

A Michigan quitclaim deed form is used to transfer real estate when the person who transfers the real estate (the grantor or transferor) does not want to provide a warranty of title to the person who receives the real estate (the grantee or transferee).¹ A quitclaim deed transfers whatever interest the current owner owns, but it makes no promises about whether the current owner has clear title to the property. Michigan quitclaim deeds have the same capacity to transfer valid ownership as other Michigan deeds, but they do not include a guarantee that the new owner will actually receive good, clear title to the property.²

What is a Warranty of Title?

A warranty of title is a guarantee about a property’s title included in some deeds.³ The warranty consists of one or more covenants of title—legal promises from the current owner to the new owner. A warranty of title protects the new owner from unknown title issues—such as a prior transfer or mortgage, a tax lien, or an error in the administration of an earlier owner’s estate. A transferor who gives a warranty of title is legally responsible for the cost of fixing title issues covered by the warranty. This may include compensating the new owner for financial loss caused by an undisclosed title problem discovered after the deed.

Michigan deeds include no implied covenants of title, so a Michigan deed provides a warranty only if the deed has language that expressly identifies the warranty.⁴ By definition, a Michigan quitclaim deed transfers property with no warranty of title. A person who receives property by quitclaim deed assumes the risk associated with any title issues. That means that the new owner has no legal right under the deed to sue the prior owner if there is a problem with the property’s title—even if the prior owner did not own the property at all.

Other Names for a Michigan Quitclaim Deed Form

Michigan quitclaim deeds are sometimes called quit claim deeds, and the terms quitclaim and quit claim are interchangeable. Laypeople sometimes call quitclaim deeds quick claim deeds, but that name is incorrect.

Other common terms for this type of deed include deed of quitclaim and release or simply release deed. The name release deed is often used when the transferor is a co-owner releasing his or her interest to another co-owner (in a divorce, for example) or when the deed’s purpose is to resolve a potential problem with the property’s title.

In other states—like Texas—a deed without warranty (also known as a no warranty deed) is an alternative to a quitclaim deed. Both a quitclaim deed and a deed without warranty convey property without a warranty of title, but title insurers in other states sometimes disfavor quitclaim deeds. This is not a problem in Michigan, though, and property owners often use quitclaim deeds to transfer Michigan real estate.

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

A Michigan quitclaim deed form provides no guarantee about the status of the property’s title. Michigan law recognizes other types of deeds that fully or partially guarantee that the new owner will receive good, clear title to the property.

A Michigan warranty deed form provides a complete warranty that covers all potential title issues unless an issue is expressly excluded by the warranty.⁵ A warranty deed’s warranty extends to the property’s entire chain of title—including any title issues that may have arisen before the transferor owned the property.

A Michigan covenant deed form transfers real estate with a partial warranty of title that covers only the period while the transferor owned the property (but not before). The transferor guarantees that he or she has not done or allowed anything to cause a title problem but makes no promises about prior owners.

Example: Ashley sells a parcel of real estate to Brett and transfers the property by quitclaim deed. Brett later learns that Ashley sold the property to someone else a year before selling the property to Brett. Had Ashley transferred the property with a covenant deed form or a warranty deed form, Brett could have sued Ashley for breaching the warranty of title. Because Ashley used a quitclaim deed form, Brett has no breach of warranty claim against Ashley under the deed.

Title Insurance and Michigan Quitclaim Deeds

A Michigan quitclaim deed gives the new owner no assurance about the quality or status of the property’s title. The new owner therefore bears the risk of any financial losses if an unknown title issue is discovered in the future. The owner can limit the risk of financial loss by purchasing a title insurance policy covering the property.

Title insurance is an insurance contract under which the title company agrees to compensate the insured person (usually the owner or a mortgage lender) if a title problem emerges.⁶ A title policy shifts the property owner’s potential risk of loss to the insurance company. For an owner who takes title through a quitclaim deed, a title insurance policy can serve as a substitute for a warranty of title. Title insurance sometimes provides the owner better protection than a warranty, as the insurance company is often a more reliable payor that a prior owner—who may have insufficient financial resources to fully cover losses caused by a title problem.

Quitclaim Deeds and Other Michigan Deeds Used in Estate Planning

The name quitclaim deed relates specifically to the deed’s lack of warranty of title. There are other types of Michigan deeds with names that are unrelated to the deed’s warranty of title. For example, Michigan estate-planning deeds have names based on how they allow property to avoid probate.

Michigan’s two most common estate-planning deeds are traditional life estate deeds and lady bird deeds (also called enhanced life estate deeds).

Michigan Life Estate Deed

A Michigan life estate deed form separates ownership into a current, lifetime interest (the life estate) and a future ownership interest (the remainder) that is effective after the current owner dies.⁷ With a traditional life estate deed, the remainder interest is vested, so the current owner cannot sell or transfer complete title without the remainder beneficiary’s consent.⁸

Michigan Enhanced Life Estate Deed

A Michigan lady bird deed form has the same structure as a traditional life estate deed but with an important distinction. An owner who creates a Michigan lady bird deed keeps greater control over the property during his or her life. The owner reserves the right to sell, transfer, or mortgage the property until his or her death without involving the beneficiary. The beneficiary takes title outside probate when the owner dies—but only if the owner still owns the property.

The names life estate deed and lady bird deed (or enhanced life estate deed) have nothing to do with the deed’s warranty of title. Thus, two names may apply to the same deed—a name based on the deed’s warranty and a name based on its estate-planning function. For example, a Michigan life estate deed may also be a quitclaim deed.

Common Uses of Michigan Quitclaim Deed Forms

A Michigan quitclaim deed form is often used to transfer real estate when the owner does not want to make any promises about the property’s title. This is usually the case if the property is transferred without consideration (if the transfer is a gift). Since the person signing the deed receives nothing in return, he or she may not want to open the door to legal liability if there is an unknown title problem.

Quitclaim deeds are also commonly used:

• To create deeds for estate planning purposes—including life estate deeds and lady bird deeds;
• To add a spouse’s name to the property’s title or to remove an ex-spouse’s name following a divorce;
• To transfer property to a living trust formed as part of the owner’s estate plan; and
• To transfer property to an LLC or other business entity owned by the property owner.

How to Create a Michigan Quitclaim Deed

Michigan law provides the following model language for Michigan quitclaim deed forms: “A.B. quit claims to C.D. (here describe the premises) for the sum of (here insert the consideration).”¹⁰ A deed that uses the statutory language transfers without warranty whatever interest in the property (if any) the person who signs the deed holds.

As with most other statutory form language, Michigan’s quitclaim language by itself falls far short of the requirements for a valid, recordable Michigan quitclaim deed. A quitclaim deed must also meet Michigan’s deed recording requirements and include all elements necessary for a valid deed. It must be property formatted and include (among other things):

• The parties’ names;
• An accurate legal description of the property;
• A statement of consideration;
• The co-ownership form the new owners will use to hold title (if there are multiple new owners); and
• The original, notarized signature of the current owner who is transferring the property.

A quitclaim deed must avoid any language suggesting that the deed includes a warranty of title. It is not necessary to expressly disclaim any warranty, but a disclaimer can help to avoid any misunderstanding or ambiguity. It is important to use the right language right when preparing a Michigan quitclaim deed. Unclear or imprecise language—or language designed for another state’s law—can produce unexpected consequences or result in an invalid transfer.

1. MCL § 565.152.
2. MCL § 565.3.
3. MCL § 565.151.
4. MCL § 565.5.
5. MCL § 565.151.
6. MCL § 500.7301.
7. See MCL §§ 554.1; 554.11.
8. MCL § 565.4.
9. MCL §§ 554.44; 565.49.
10. MCL § 565.152.