Arizona Real Estate License Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

A quitclaim deed is commonly used to clear a cloud on the title due to its specific characteristics. This type of deed transfers whatever interest the grantor may have in a property to the grantee without making any warranties or guarantees about the quality of the title. Because it does not assert that the title is clear, it is often utilized to resolve issues where there may be uncertainty regarding ownership or existing claims.

For instance, if there is a dispute over a property line or if a former owner's interest has not been formally removed from the title, a quitclaim deed can effectively relinquish any claims, thereby clearing the title and allowing for future transactions without the burden of previous ownership disputes. This is particularly valuable in situations such as divorces, where one spouse may give up their interest in the family home.

In contrast, other types of deeds, such as a bargain and sale deed or limited warranty deed, may carry warranties or imply certain assurances about the title, which can complicate rather than simplify the process of clearing title issues. A referee's deed, typically utilized in foreclosure sales, may not adequately address the specific purpose of clearing a cloud on the title. Therefore, the quitclaim deed stands out as the most effective instrument for this purpose.