How a Quitclaim Deed Works in South Carolina
What a quitclaim deed does and why it matters
A quitclaim deed is a document that transfers whatever ownership interest you have in a property to someone else—with no may provide that you actually own it or that the title is clear. The person receiving the property gets only what you claim to have, and if your claim turns out to be worthless, they have no legal recourse against you. South Carolina recognizes quitclaim deeds, but they are riskier than other deed types and are typically used only between people who know and trust each other.
The word "quitclaim" means you are giving up ("quitting") any claim you have to the property. You are not promising the property is yours, that nobody else owns part of it, or that you have the right to sell it. A buyer who receives a quitclaim deed takes on all the risk that the title is defective, clouded, or worthless. For this reason, most mortgage lenders will not finance a purchase made with a quitclaim deed, and title insurance companies will not insure one.
Quitclaim deeds are common in South Carolina for transfers between family members, divorces, corrections to titles, and transfers into trusts or business entities. They are fast and inexpensive to prepare. But they should never be used in an arm's-length sale—that is, a sale between strangers where money changes hands—because the buyer has no protection.
Key Takeaways
- A quitclaim deed transfers only the interest you claim to have, with no warranty that you own the property or that the title is clear.
- Most mortgage lenders and title insurance companies will not work with quitclaim deeds, so a buyer cannot easily finance or insure the purchase.
- Quitclaim deeds are appropriate for transfers between family members, divorces, trust transfers, and correcting title errors, but not for sales between strangers.
- South Carolina requires the deed to be notarized and recorded in the county where the property is located to be valid and enforceable.
- If you receive a quitclaim deed, you should have a title search done to uncover any liens, mortgages, or other claims against the property before accepting it.
How quitclaim deeds differ from warranty deeds and special warranty deeds
South Carolina recognizes three main types of deeds, each with a different level of protection for the buyer. A warranty deed (also called a general warranty deed) is the strongest. The seller promises that they own the property free and clear, that nobody else has a claim to it, and that they will defend the buyer if anyone later challenges the title. If the title turns out to be defective, the buyer can sue the seller for breach of warranty.
A special warranty deed is middle ground. The seller promises only that they have not done anything to cloud the title during the time they owned it. They do not promise the title was clear when they received it, and they do not warrant against claims that arose before they owned the property. This deed is sometimes used in commercial transactions and foreclosures.
A quitclaim deed offers no warranties at all. The seller makes no promise about ownership, title quality, or the absence of liens. The buyer accepts the property "as is" with respect to title. If a lien or mortgage is discovered later, or if someone else claims ownership, the buyer's only option is to sue the seller for fraud—and only if the seller knowingly concealed a defect. In most cases, the buyer has no remedy.
When quitclaim deeds are appropriate in South Carolina
Quitclaim deeds are the right tool when both parties understand the risks and trust each other. The most common uses are transfers between spouses or family members, such as adding a spouse's name to a deed during marriage or removing a spouse's name in a divorce. Because the parties know each other and the family relationship is ongoing, the risk of hidden title defects is lower, and the cost and speed of a quitclaim deed outweigh the risk.
Quitclaim deeds are also used to transfer property into a revocable living trust. When you place your home into a trust during your lifetime, you are the owner before and after the transfer, so there is no real risk. The quitclaim deed simply changes the title from your individual name to the trust name. This is a routine estate planning step and does not require a warranty deed.
Another common use is correcting errors on an existing deed. If a prior deed misspelled a name, omitted a middle initial, or listed the wrong legal description, a quitclaim deed can be used to correct the record. The person who made the error (or their heir) quitclaims to the correct owner, and the corrected deed is recorded. This clears up the title without requiring a full warranty deed.
Quitclaim deeds are also used in divorce settlements when one spouse quitclaims their interest to the other as part of the divorce agreement. The divorce decree typically orders the transfer, and the quitclaim deed carries out that order. Because the transfer is mandated by a court, the risk to the receiving spouse is minimal.
The steps to create and record a quitclaim deed in South Carolina
Creating a quitclaim deed in South Carolina requires specific language and formatting. The deed must identify the grantor (the person giving up the interest), the grantee (the person receiving it), the property by legal description, and the consideration (what is being given in exchange—often "love and affection" in family transfers, or a dollar amount in other cases). The deed must state that the grantor quitclaims all interest to the grantee.
The grantor must sign the deed in front of a notary public. South Carolina law requires the notary to witness the signature and certify it. The notary does not need to verify that the grantor actually owns the property or that the information on the deed is correct—only that the person signing is who they claim to be and that they are signing voluntarily. After notarization, the deed must be recorded in the Register of Deeds office in the county where the property is located.
Recording is essential. An unrecorded deed is valid between the grantor and grantee, but it does not give the grantee legal notice of ownership. If the grantor later sells the same property to someone else, or if a creditor places a lien on the property, the person who received the unrecorded quitclaim deed may lose their interest. Recording puts the world on notice that the grantee has a claim to the property.
The Register of Deeds will assign the deed a book and page number and return a recorded copy to you. Keep this recorded copy in a safe place. You will need it if you ever sell the property, refinance, or need to prove your ownership.
Title insurance and financing with a quitclaim deed
Most title insurance companies will not issue a policy on a property transferred by quitclaim deed. Title insurance protects the owner and the lender against losses from title defects—liens, mortgages, easements, or claims by other owners. Because a quitclaim deed carries no warranty, the title company has no one to pursue if a defect is discovered. The company will not take on that risk.
Similarly, mortgage lenders will not finance a purchase made with a quitclaim deed. Lenders require title insurance as a condition of the loan. Without it, the lender has no protection if the title is defective. If you receive property by quitclaim deed and later want to sell it or refinance, you may find that the title is unmarketable—meaning no buyer will accept it and no lender will finance it—until you obtain a warranty deed from the previous owner or clear the title through a quiet title action in court.
If you are considering accepting a quitclaim deed, you should have a title search done before you accept it. A title search will reveal liens, mortgages, tax liens, and other claims against the property. If defects are found, you can negotiate with the grantor to clear them before you take the deed, or you can decline the transfer. Do not accept a quitclaim deed and hope the title is clear.
What happens if a quitclaim deed is challenged or disputed
Once a quitclaim deed is recorded, it is a valid legal document. The grantee's ownership is recognized by the county and the state. However, the lack of warranty means the grantee has limited recourse if problems arise. If a lien is discovered after the transfer, the grantee is responsible for paying it off, even though they did not create it. If someone else claims ownership of the property, the grantee must defend their title in court at their own expense.
The only exception is fraud. If the grantor knowingly concealed a defect—for example, if they knew a mortgage was still outstanding and did not disclose it—the grantee may be able to sue for fraud and recover damages. But fraud is hard to prove. The grantee must show that the grantor made a false statement of fact, knew it was false, intended the grantee to rely on it, and that the grantee suffered a loss as a result. Simply failing to mention a problem is usually not enough; the grantor must have actively misrepresented the title.
If the title is so defective that the grantee cannot use or sell the property, the grantee's only real remedy is a quiet title action. This is a lawsuit filed in circuit court asking the judge to declare who the true owner is and to clear the title of all competing claims. It is expensive and time-consuming, which is why accepting a quitclaim deed is risky.
Quitclaim deeds and property taxes in South Carolina
Recording a quitclaim deed does not automatically change the property tax assessment or the tax bill. The county assessor's office maintains its own records of property ownership for tax purposes. When a quitclaim deed is recorded, you should notify the assessor's office and provide a copy of the recorded deed. The assessor will update their records and may reassess the property if the transfer triggers a reassessment under South Carolina law.
In South Carolina, a transfer of property generally triggers a reassessment by the county assessor. However, transfers between spouses, transfers to a revocable trust, and transfers in certain family situations may be exempt from reassessment. You should contact your county assessor's office to find out whether the transfer will result in a new assessment and a change in your tax bill. Failing to report the transfer can result in the property remaining in the prior owner's name for tax purposes, which can create confusion and liability issues.
Frequently Asked Questions
Can I use a quitclaim deed to sell my house to a stranger?
You can, but you should not. A buyer who receives a quitclaim deed has no protection if the title is defective, and most lenders will not finance the purchase. Use a warranty deed instead. It costs only slightly more and protects the buyer, making the sale marketable and financeable.
What if I receive a quitclaim deed and later find out someone else has a lien on the property?
You are responsible for paying off the lien. The grantor made no promise that the title was clear, so you have no claim against them unless you can prove fraud. This is why a title search before accepting the deed is essential.
Do I need a lawyer to prepare a quitclaim deed in South Carolina?
No, but it is a good idea. A lawyer can ensure the deed is properly formatted, the legal description is correct, and it is notarized and recorded correctly. Mistakes in the deed can cloud the title and cause problems later. The cost of a lawyer is usually worth it.
If I put my house in a trust using a quitclaim deed, does that protect it from creditors?
A revocable living trust does not protect assets from creditors during your lifetime. The trust is still considered your property for creditor purposes. An irrevocable trust may offer some protection, but that is a separate question and depends on your specific situation. Consult an estate planning attorney.
Can a quitclaim deed be reversed or undone?
Once recorded, a quitclaim deed is a permanent transfer of ownership. It cannot be undone by the grantor alone. If both parties agree to reverse the transfer, a new quitclaim deed can be recorded transferring the property back. Otherwise, the only way to undo it is through a court order, which requires proving fraud, duress, or another legal ground for rescission.