What is the primary purpose of a quitclaim deed?

A quitclaim deed is primarily used to release any interest that the grantor may have in a property. This type of deed provides the recipient with whatever interest the grantor holds, if any, without making any guarantees about property title or ownership. In other words, it does not imply that the grantor has a clear title to the property; it simply conveys whatever rights they have.

For example, quitclaim deeds are often used in scenarios like divorce settlements, where one spouse might transfer their interest in the marital home to the other spouse. Additionally, they can be utilized to clear up title issues, such as when an heir wants to formally convey rights to property.

The other options mentioned do not accurately capture the primary function of a quitclaim deed. Transferring a mortgage refers to the process of assigning a loan, which is not the deed's intent. Terminating a lease involves rental agreements and landlord-tenant relations, unrelated to property ownership rights. Granting financial compensation does not pertain to the purpose of a quitclaim deed, as it does not involve financial transactions or guarantees of ownership.