What does a "quitclaim deed" do?

A quitclaim deed is a legal instrument used to transfer a person's interest in a property to another party without any warranty or guarantees regarding the extent of that interest. This means that when a grantor signs a quitclaim deed, they are conveying whatever ownership interest they may have in the property at that time, which can be minimal or substantial, but they are not promising that the title is clear or free of encumbrances.

This type of deed is typically used in situations where property is transferred between family members, in divorce settlements, or in situations where the parties know each other well and trust that the transfer is appropriate.

In contrast, options that reference guarantees about the title would suggest a level of assurance that a quitclaim deed does not provide, making the correct answer clear. Additionally, legalizing a purchase or allowing a borrower to assume a mortgage are functions that do not describe the quitclaim deed's purpose.