Colorado Title Insurance for Quit Claim Deeds: Understanding the Risks Before You Accept Ownership

Jerad Larkin
Feb 25
5 min read

Thinking about transferring property with a quit claim deed in Colorado? Here’s what you need to know before you sign.

A quit claim deed is one of the simplest ways to transfer real estate in Colorado - but also one of the riskiest. It’s often used between family members, divorcing spouses, or business partners to quickly transfer ownership. However, a quit claim deed doesn’t guarantee that the person transferring the property actually owns it - or that it’s free from liens, judgments, or title issues. That’s why pairing it with title insurance is crucial to protect your ownership rights. Whether you’re receiving property through a divorce settlement, a family gift, or a business transaction, understanding how Colorado title insurance works with quit claim deeds can prevent costly surprises later.

Transferring property with a quit claim deed in Colorado? Learn how title insurance protects against hidden liens and ownership risks.

What Is a Quit Claim Deed?

A quit claim deed (sometimes called a quick claim deed) is a legal document used to transfer ownership interest in a property from one person to another - without any warranties or guarantees about the title’s status.

Unlike a warranty deed, which guarantees clear ownership and a lack of encumbrances, a quit claim deed simply states:

“I transfer whatever interest I have - if any - in this property to you.”

If the grantor (person transferring ownership) has no legal ownership or there are hidden liens, the grantee (recipient) receives nothing - and has no legal recourse against the grantor.

When Quit Claim Deeds Are Commonly Used in Colorado

Quit claim deeds are frequently used in low-risk or relationship-based transfers, such as:

Between family members (parents to children, siblings, etc.)
Between spouses (adding or removing a name after marriage or divorce)
Into or out of a trust or LLC
To clear title defects (like misspelled names or clerical errors)
For partial ownership transfers (co-ownership changes)

While the intent behind these transfers is often practical, problems can arise when the property’s title history isn’t properly reviewed or insured.

Why Quit Claim Deeds Are Risky Without Title Insurance

Because quit claim deeds transfer ownership without warranties, the recipient assumes all risk for existing liens, judgments, or disputes.

Common risks include:

Unpaid taxes or mechanic’s liens
Outstanding mortgages or unreleased loans
Ownership disputes among heirs or co-owners
Fraudulent or forged deeds
Clerical or recording errors at the county level
Boundary or easement conflicts

If you accept a quit claim deed without title insurance, you could discover later that:

The grantor didn’t actually have full ownership.
Someone else has a legal claim on your property.
You’re responsible for someone else’s debts tied to the property.

That’s where title insurance provides the protection you need.

How Title Insurance Works With Quit Claim Deeds

Title insurance protects your ownership rights - regardless of how you received the property. Even if you’re acquiring property through a quit claim deed, you can still purchase an Owner’s Title Insurance Policy to ensure clear ownership.

🛡️ An Owner’s Policy Covers:

Fraud or forgery in prior deeds
Unreleased liens or old mortgages
Hidden heirs or undisclosed co-owners
Errors in public records
Legal defense if ownership is challenged

It’s a one-time cost that covers you for as long as you own the property - and in many cases, it’s the only safety net available after a quit claim transfer.

Example: A Family Transfer Gone Wrong

A Colorado Springs homeowner quit claimed their property to their daughter to avoid probate. Years later, when the daughter tried to sell the home, the title company discovered an old tax lien from the original owner - recorded 20 years earlier. Because the transfer was made via quit claim without title insurance, the lien was never cleared. The sale was delayed for months, and the daughter had to pay nearly $8,000 to resolve the issue. Had the family obtained title insurance at the time of the quit claim transfer, the lien would have been covered - and the loss avoided entirely.

The Difference Between Quit Claim and Warranty Deeds

Type of Deed	Guarantees Clear Title?	Used For	Buyer Protection
Warranty Deed	✅ Yes	Standard real estate sales	Highest protection
Special Warranty Deed	⚠️ Partial	Builder or REO sales	Moderate protection
Quit Claim Deed	❌ No	Family or internal transfers	No protection

Quit claim deeds may be faster and cheaper, but they shift all responsibility for title problems onto the recipient.

Why Title Companies Are Still Needed for Quit Claim Transfers

Even when there’s no traditional “sale,” a title company like Chicago Title Colorado can ensure the transaction is handled correctly.

Here’s how the process typically works:

Title Search – The company reviews county records to confirm ownership and identify liens or encumbrances.
Document Preparation – The deed is drafted and verified for accuracy (correct legal description, grantor/grantee names, notarization, etc.).
Recording – The title company records the deed with the county clerk to make it official.
Owner’s Policy Issuance – A title insurance policy is issued to protect the new owner from any hidden defects.

This process provides a clear chain of title and legal documentation - two critical safeguards missing from most DIY quit claim transfers.

Quit Claim Deeds and Divorce in Colorado

In divorce proceedings, one spouse often quit claims their interest in the marital home to the other as part of the settlement. While this may satisfy the divorce decree, it doesn’t automatically remove that spouse’s name from the mortgage - only the title. Title insurance ensures that ownership changes are properly recorded and protects the receiving spouse from any undisclosed claims or liens.

Quit Claim Deeds and Inherited Property

Heirs sometimes use quit claim deeds to transfer inherited property among family members. However, if the estate wasn’t properly probated, or if other heirs exist, the transfer can create future ownership disputes.

Title insurance confirms that:

The estate had legal authority to transfer the property.
All heirs were accounted for.
The new deed reflects valid ownership.

How to Safely Accept Property by Quit Claim in Colorado

If you’re receiving a property via quit claim, take these steps to protect yourself:

Order a Title Search before signing anything.
Request a title commitment from a trusted title company.
Purchase an Owner’s Title Policy at the time of transfer.
Record the deed with your county clerk immediately after closing.
Keep copies of all documentation related to the transfer.

Following these steps ensures you have verifiable ownership and legal protection if any issues arise later.

Why Jerad Larkin and Chicago Title Colorado Are the Best Choice

Quit claim transfers may seem simple, but the risks can be serious. That’s why Jerad Larkin and Chicago Title Colorado help families, business partners, and investors handle these transfers safely - with proper title examination, escrow, and insurance coverage.

Jerad’s team ensures:

Accurate deed preparation and recording
Clear communication with all parties
Fast closings for simple transfers
Protection through Owner’s Title Insurance Policies

Whether you’re removing a name from title or transferring property within your family, Chicago Title Colorado gives you confidence that your ownership is fully protected.

Conclusion

A quit claim deed may look like a quick solution, but without title insurance, it can turn into a costly mistake. Title insurance verifies ownership, clears old liens, and protects your rights for as long as you own the property. Before signing or accepting a quit claim deed in Colorado, talk with Jerad Larkin and Chicago Title Colorado to ensure your transfer is secure, legal, and fully insured.