What is a common misconception about quitclaim deeds?

A common misconception about quitclaim deeds is that they assure the buyer of clear title. In reality, a quitclaim deed transfers only whatever interest the grantor has in the property, without making any guarantees regarding the title's validity or extent. This means that if the grantor does not have a clear title or any ownership interest, the buyer receives nothing of value. Therefore, it is crucial for buyers to conduct thorough title searches and possibly obtain title insurance when dealing with quitclaim deeds, as these documents do not provide any assurance regarding encumbrances, liens, or other claims that may affect the property.

Regarding the other answer options, quitclaim deeds are not rare in real estate transactions; they are commonly used in various situations, such as transferring property between family members or in divorce settlements. They can be used for transferring any type of property, including residential, commercial, and vacant land, thus dispelling the idea that they are limited to residential properties. As for signatures, the requirement for a quitclaim deed is typically that only the grantor must sign it, not multiple signatures, which further distinguishes it from other types of deeds that may have more stringent formalities.