Escrow & Title

In Tennessee, a 'quitclaim deed' is most appropriate for:

AConveying marketable title with full warranty

BTransferring whatever interest the grantor has, without warranties — commonly used to clear title defects or between related parties✓ Correct

CConveying title in a new home sale

DTransferring title to a lender as mortgage security

Explanation

A quitclaim deed conveys only whatever interest the grantor actually holds, with no warranties. It is frequently used to clear title clouds, add or remove a name from title, or transfer property between spouses or family members.

People Also Study

Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.