hey guys i think this is recording now i had a question from a student earlier today who was confused about the difference between warranty deeds and quit claim deeds as they relate to things like liens and encumbrances on property and i thought i needed to spend a few more minutes slowing this down and maybe explaining it a little bit better generally the difference between a warranty deed and a quit claim deed is the amount of guarantee that the seller provides to the purchaser in a warranty deed the seller is saying hey you get good title to this property i have good title to it and so i am transferring my good title to you i'm gonna explain what good title means in a minute which is where i think the confusion was for the student in a a quit claim deed on the other hand the seller is just saying hey i'm not guaranteeing anything i'm not saying that i have good title or not but what i am saying is that whatever title and interest i have in the property i'm transferring it to you you get whatever i have if i have good title you get good title if i don't have good title you didn't get good title either now what does good title mean and this is where the source of confusion was for the student when i talk about a lien or an encumbrance on property those are things like a mortgage for example uh if there's a mortgage on property and i'm transferring the property to you that mortgage takes precedent they're owed money and they used that property to secure their loan so if i transfer that property to you and it has a mortgage on it already i'm not transferring good title to you you can't just take that property do whatever you want to because somebody else has an encumbrance on that property so a warranty deed is not going to work there unless the mortgage is satisfied first now other liens and encumbrances might be a judgment against the uh the seller where the judgment creditor has filed some claim against the property a tax lien for example might be another type of encumbrance against the property if you have things like that that exists and you're transferring property pursuant to a warranty deed you are guaranteeing to the purchaser that they can have that property free and clear of any of these encumbrances unless the exception would be if you have something that uh that excludes specific liens or encumbrances you could say i'm transferring this to you pursuant to a warranty deed except for this particular lien or encumbrance that would also satisfy the requirements so basically a warranty deed is the seller's guarantee to the purchaser that they are receiving good title clear title is another way to put it there are no clouds on the title a cloud being a lien encumbrance mortgage something like that a quit claim deed does not guarantee that clear title will be received there might be clouds on the title there might be a situation where the seller doesn't really have any ownership interest at all or somebody else has an ownership interest with them and they are required to join in on any transfer for example perhaps a homestead type situation with a husband and wife so the difference between a warranty deed and a quit claim deed is the level of protection that a buyer will receive in the transferred property in the warranty deed they are receiving assurances that they are received that they're going to receive the property with clear title and if they don't the seller has to fix it they've got to pay off the mortgage they've got to pay the lien they've got to do whatever is necessary to make the property free and clear in a quid claim deed if there's a transfer made and there are liens or encumbrances against the property too bad so sad purchaser you should have done your due diligence you should have done a title search you should have obtained your own title insurance uh received a title opinion whatever because if they provide a quid claim deed they're not giving you any guarantees of clear title at all and there may be clouts on the title i hope that helps and maybe clarifies it a little bit more if you have any questions or if i can help you please don't hesitate to contact me you all have a good day and good luck on the exam