Quitclaim Deeds in NJ: What They Are, When to Use One, and What They Don't Cover
What is a quitclaim deed in NJ?
A New Jersey quitclaim deed transfers whatever interest the grantor has in the property to the grantee — with no warranties at all. The grantor doesn't promise they actually own it or that title is clean. Quitclaims are commonly used for intra-family transfers, divorce-driven name changes, moving a house into a trust or LLC, or clearing a cloud on title. They're rarely used for an arm's-length sale to a stranger, who would want covenants and title insurance.
Key takeaways
- ✓ A quitclaim deed transfers whatever interest the grantor has — no promises, no warranties.
- ✓ Common uses: divorce settlements, intra-family gifts, transfers into a trust or LLC, fixing title errors.
- ✓ Most arm's-length NJ home sales use a bargain-and-sale deed with covenants, not a quitclaim — title insurers prefer it.
- ✓ A quitclaim does NOT remove the grantor from the mortgage; the lender's approval is separate.
- ✓ New Jersey's Realty Transfer Fee still applies on most deed recordings, with limited intra-family and divorce exemptions.
If you’ve been handed paperwork that says “quitclaim deed” — in a divorce, an estate, a family transfer, or a trust — and you’re not sure what you’re actually getting, this guide is the plain-English version. Quitclaim deeds are common in New Jersey but widely misunderstood, and the misunderstandings can be expensive.
What a quitclaim deed actually does
A quitclaim deed transfers whatever interest the grantor has in the property to the grantee — and only that. It carries no warranties of title:
- No promise the grantor actually owns the property.
- No promise title is free of liens.
- No promise to defend the grantee against later claims.
If the grantor had clear, perfect title, the grantee gets clear, perfect title. If the grantor had nothing — or a one-quarter undivided interest, or title clouded by a forgotten judgment — that’s exactly what the grantee gets.
That’s the whole point of using one: it’s a fast, low-friction way to move whatever interest exists from one party to another, in situations where the parties already understand what that interest is.
The three NJ deed types in plain English
New Jersey real estate uses three deed types in practice:
| Deed type | What the grantor promises |
|---|---|
| Warranty deed | ”I own it, title is clean, and I’ll defend you against any claims, ever.” |
| Bargain-and-sale deed with covenants | ”I haven’t done anything to mess up title during my ownership, but I make no promises about anyone before me.” |
| Quitclaim deed | ”Whatever I have, I’m giving you. I make no promises at all.” |
The bargain-and-sale deed with covenants against grantor’s acts is the workhorse of New Jersey arm’s-length residential transactions. The warranty deed is rare here. The quitclaim deed is reserved for the family/trust/divorce/cleanup scenarios below.
When a quitclaim deed is the right tool
Divorce
One spouse signs a quitclaim conveying their interest in the marital home to the other, pursuant to the divorce settlement or court order. NJ sometimes grants a Realty Transfer Fee exemption for such transfers when they’re pursuant to a court order — confirm with your attorney. Critical: signing the quitclaim does not remove the signing spouse from the mortgage. That requires refinance, assumption, or sale.
Intra-family transfers
A parent gifts a house to an adult child. A grandparent transfers a vacation home to a family LLC. Two siblings consolidate ownership by one quitclaiming to the other. The parties trust the title situation and want a simple recording.
Moving a house into a trust
When a homeowner places their house into a revocable living trust as part of estate planning, the conveyance from the individual to themselves as trustee is typically done by quitclaim (or a similar non-warranty transfer). For more on trust-held property, see selling a house held in a trust in NJ.
Clearing a cloud on title
A name appears on title that shouldn’t be there — an ex-spouse never removed after a long-ago divorce, a deceased co-owner whose interest was never formally transferred, or a misspelling from a prior deed. A quitclaim from the affected party is often the cleanest way to cure the defect.
Adding or removing a spouse after marriage
After marriage, one spouse may quitclaim the other onto title (creating tenancy by the entirety). After divorce, the reverse.
When a quitclaim is the wrong tool
- An arm’s-length sale to a stranger. The buyer’s title insurer wants covenants and a clean chain. Use a bargain-and-sale deed instead.
- When the buyer is getting a mortgage. Lenders nearly always require their borrower-buyer to take title via a deed with covenants. Title insurance + lender requirements drive this.
- When you want to walk away from the mortgage. A quitclaim transfers ownership; it does not change the loan. The lender doesn’t care that you signed away title — the original borrower stays on the note.
What the deed actually has to contain in NJ
A New Jersey quitclaim deed must be:
- In writing, signed by the grantor.
- Acknowledged before a notary (the notary block is non-negotiable).
- Filed with the County Clerk of the county where the property sits — for Camden County properties, that means recording through the Camden County government (the Clerk’s Office handles deed recordings).
- Accompanied by the required state forms — the Affidavit of Consideration and the seller residency certification, when applicable. The closing attorney or title company prepares these.
- Calculated for the Realty Transfer Fee, unless an exemption applies (intra-family, divorce by court order, transfer to a revocable trust, etc.).
Recording rejections are common when forms are missing or filled incorrectly. Working with a real estate attorney for the prep is inexpensive insurance.
The mortgage problem (read this twice)
This is the most common quitclaim mistake we see:
Signing a quitclaim does not get you off the mortgage.
A quitclaim transfers your interest in the property. The mortgage is a separate contract between you and the lender. If you signed a mortgage with your spouse and then quitclaim your half to them, you no longer own the house — but you are still legally responsible to the bank for the entire loan. If the new owner stops paying, your credit takes the hit.
To actually be free of the mortgage obligation, you need one of:
- Refinance — the remaining owner refinances in their name only, paying off the joint loan.
- Assumption — the lender formally releases the original borrower and substitutes the new owner.
- Sale — the property is sold, the loan is paid off at closing, and the lender’s lien is released.
If you’re in this situation and the refinance isn’t realistic — or the relationship can’t sustain the wait — selling for cash is the fastest exit. We’ve closed many divorce-and-mortgage sales in Camden County. See our divorce situation page for more.
Taxes — the short version
This is general information, not tax or legal advice — confirm specifics with a CPA or attorney.
- NJ Realty Transfer Fee — applies to most recordings, calculated on the deed’s stated consideration. Specific exemptions exist for certain spousal/divorce/trust transfers. Your closing attorney or the NJ Division of Taxation determines the exact treatment.
- Federal gift tax — if there’s no consideration (or below-market consideration), the IRS may treat the transfer as a gift. Each individual has an annual gift exclusion and a lifetime exemption.
- Basis carryover — when property is gifted by quitclaim, the recipient typically takes the donor’s cost basis rather than getting a stepped-up basis. This can have major capital-gains implications when the recipient eventually sells.
- Stepped-up basis at death — usually does not apply if the property was transferred away during the donor’s lifetime.
The takeaway: a quitclaim moves the deed quickly, but the tax consequences can be larger than the recording fee. See taxes when selling a house in NJ for related ground, and talk to a CPA before signing.
What if I want to sell a house I received by quitclaim?
You can — once the deed is recorded, you hold whatever interest the grantor conveyed. Two things to know:
- Title insurance. An arm’s-length buyer’s title company will run a fresh title search. If your chain of title shows a recent quitclaim, expect additional underwriter questions or, occasionally, a request for an affidavit. This is normal and usually resolved quickly.
- A cash buyer is often more flexible. A self-funded cash buyer (no lender title insurance to satisfy) can typically close on a property recently received via quitclaim faster than a traditional financed buyer would.
If you inherited, were gifted, or otherwise received a NJ property via quitclaim and want to sell — in Cherry Hill, Camden, Pennsauken, Haddon Township, or anywhere else in Camden County — request a cash offer and we’ll work through the title side with you.
General information about New Jersey deed and tax topics. Not legal or tax advice. Quitclaim deeds carry real legal consequences; consult a New Jersey real estate attorney before signing one.