You can easily use and quickly complete quitclaim deeds for many reasons, including adjusting a property’s owners after a divorce or transferring property into your business LLC. While they offer many benefits over full warranty deeds, there are a few risks to be aware of.
In this guide, we’ll cover what a quitclaim deed is, how it differs from other deeds, when to use one, and how to file one properly. We’ll discuss everything you need to know to ensure your property transfer process is legally compliant, efficient, and as stress-free as possible.
What is a quitclaim deed?
A quitclaim deed is a legal document property owners use to transfer real estate from its current owner (called the grantor) to a new owner (called the grantee). Here are a few common instances of when people use quitclaim deeds:
- To transfer ownership between family and friends
- To update address errors in the original deed
- To quickly add or remove names from a deed
As mentioned, the process is generally quick and straightforward. But it’s essential to keep in mind that these contracts don’t promise a clear title. And if issues or disputes arise down the line, the new owner has limited legal options.
How do quitclaim deeds differ from other types of deeds?
Quitclaim deeds are much faster than other types of deeds, but they provide the least protection to the new owner. To help you compare record types, here’s a helpful chart exploring the differences between common deeds, their primary purpose, and how people use them.
| Deed Type | Purpose | Common Uses |
| Quitclaim Deeds |
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| Warranty Deeds |
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| Grant Deeds |
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| Transfer on Death |
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| Special Purpose Deed |
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Understanding the differences between these common deed types can help you choose the best option for your specific situation.
When are quitclaim deeds used?
Here’s an outline of five situations where people use quitclaim deeds:
- Transferring property between family: They’re most often used when parents are gifting their children a property or placing real estate in a family trust.
- Marriage and divorce: Property owners use quitclaims to add a spouse’s name to the property’s title after they get married, or to remove an ex-spouse’s name during divorce proceedings.
- Adding a new owner to a deed: Quitclaims allow property owners to formally transfer ownership rights to both themselves and the new owner, while ensuring an accurate chain of title.
- Transferring property from owner to LLC: Changing the property’s title from the owner’s name to the LLC offers both legal protection and tax benefits.
- Fixing errors in deeds: If there’s an error on a deed or you need to update specific information, quitclaims are a convenient way to edit the following:
- The property’s legal description
- The amount of consideration (the price paid for the property)
- Names of title holders
- Names of witnesses
- Any additional information required for compliance
You’ll find these deeds provide a practical solution to many real estate-related needs.
How do landlords use quitclaim deeds?
If you rent out your property, you can use quitclaim deeds to:
- Add or remove co-owners or partners from rental property deeds.
- Transfer real estate into management entities.
- Correct errors on the title without violating a tenant’s legal rights.
Remember, always consult with a real estate attorney before attempting to transfer property or edit deeds.
Quitclaim Deed Laws
Most states allow you to use these documents for the same reasons, but the legal requirements, recording procedures, tax implications, and enforceability can vary significantly. Here are a few examples of how the legal guidelines or processes differ across states:
Florida: State law requires the grantor’s signature to be acknowledged by a public notary (Fla. Stat. § 695.03).
Texas: State law allows you to record real property documents electronically (Tex. Prop. Code § 15.004).
Illinois: To record a quitclaim deed, the grantor must sign the deed in front of a notary. In some cases, the notary must be an employee of the county recorder’s office, and a $50 fee applies (765 Ill. Comp. Stat. 5/10).
If you’re going to transfer property or alter your rental asset’s deed, always check your county recorder’s website and speak with a legal professional.
Pros and Cons of Using Quitclaim Deeds
Before deciding to use a quitclaim deed, we recommend weighing the positives and negatives. Here’s what you need to know:
Benefits
- Simple: They’re short, easy to use, and you can find templates online to streamline the process.
- Versatile: Beyond property transfers, you can use them to document informal agreements and clarify ownership of shared assets.
- Quick: Unlike other deeds, you don’t need to conduct a title search, making quitclaims faster to implement.
- Cost-Effective: You don’t always need to hire a professional for assistance, which helps keep the process affordable.
Drawbacks
- Not guaranteed: A quitclaim deed provides no guarantees regarding the quality of the title.
- High liability: The grantee assumes the property “as is,” including any title defects.
- Risky: They’re susceptible to future claims by third parties with a legal interest in the property.
- Not always suitable: Quitclaim deeds can’t be used for all types of property transfers, including real estate sales involving an outstanding mortgage.
To determine your best course of action, consult a trusted lawyer.
Can you prepare your own quitclaim deed?
Most states, including California (Cal. Civ. Code § 1091), Texas (Tex. Prop. Code § 11.002), and Florida (Fla. Stat. § 689.01), don’t require professionals to work on quitclaims. If you choose to have a third party handle the process, you must add their name and address to the deed.
Lawyer Required at Closing
While it’s uncommon, property owners sometimes use a quitclaim deed when selling their home. In these cases, some states require you to have an attorney present at closing, including:
- Connecticut (Conn. Gen. Stat. § 20-327a)
- Massachusetts (Mass. Gen. Laws ch. 112, § 87F)
- New Jersey (N.J. Stat. § 2A:50-63)
- New York (N.Y. Real Prop. Law § 291)
- Rhode Island (R.I. Gen. Laws § 5-20-1 et seq.)
- South Carolina (S.C. Code § 40-5-360 et seq.)
- Vermont (Vt. Stat. tit. 26, § 2432)
- Virginia (Va. Code § 54.1-3902 et seq.)
- West Virginia (W. Va. Code § 30-2-10 et seq.)
Always check your state’s specific rules before closing your sale using a quitclaim deed to keep your process legally compliant.
Who signs a quitclaim deed?
A grantor, or the property’s original owner, always has to sign a quitclaim deed. Then, a notary must confirm their signature. Beyond the grantor’s signature, the legal requirements vary by state.
For example, some states with Homestead protection laws require the grantor’s spouse to sign, including Alaska (AS § 34.15.010) and Texas (Tex. Prop. Code § 5.001). Certain jurisdictions also require witnesses and the person receiving the property to sign. For example, South Carolina requires two witnesses to sign (S.C. Code § 30-5-30), and Kentucky requires the grantee’s signature (Ky. Rev. Stat. § 382.135).
These signature requirements ensure that authorities or notaries legally validate and document the deed.
How to File a Quitclaim Deed in 6 Steps
Filing a quitclaim deed is simple. Here’s how it works:
1. Obtain a Quitclaim Deed Form
First, you’ll need to obtain the form. You can get one from your county recorder’s office, or download the free template at the top of this article.
2. Fill Out the Quitclaim Deed Form
You’ll need to gather the property’s details, including its legal description and Assessor’s Parcel Number (APN).
3. Notarize the Quitclaim Deed
All quitclaim deeds must be notarized, but the specific process requirements vary by state. Here’s what you need to know:
The notary witnesses the signature: In some states, including Georgia (Ga. Code § 44-2-21), you must sign the document in the presence of a notary. They witness your signature and verify your identity.
The notary acknowledges the signature: Certain jurisdictions, including California (Cal. Civ. Code § 1189), have laws requiring you to sign the document in advance. After that, a notary confirms identity.
Check your state’s specific requirements to make sure you’re following the correct legal process.
4. File the Appropriate Paperwork
Next, check your state and county recorder’s website for any additional documents you need to submit when transferring properties. For example, New York requires you to fill out a Real Property Transfer Report and a Transfer Tax Affidavit (N.Y. Real Prop. Law § 333).
5. Pay Any Necessary Fees
You may have to pay fees to file a quitclaim deed, such as:
- Recording fees: You’ll pay these to record the deed officially.
- Transfer taxes: Some states impose taxes on real estate transfers based on the property’s value.
- Notary fees: These are required for notarizing signatures on the deed.
Costs vary by location and fee type, so always check your state and county requirements to determine what you’ll need to pay.
6. File the Quitclaim Deed
As the final step, visit your county recorder’s office to officially record the deed in the public record.
Where to file: File the document with the Recorder of Deeds or the county clerk’s office where the property is located. Once all parties sign the deed, recording it notifies creditors and potential buyers.
Cost to file: While the cost of filing a quitclaim varies by state, the amount is usually between $5 and $25 per page. Typically, the amount includes:
- Filing fees
- Recording fees
- Deed transfer taxes
- County fees (if any)
- Mortgage taxes (due upon filing)
Keep in mind: Most people don’t use quitclaim deeds to transfer property with an outstanding mortgage balance. If you do, it triggers a Due-on-Sale clause requiring the borrower to repay the full balance upon sale or transfer of the property.
Tax Implications of Quitclaim Deeds
The federal gift tax rules typically govern how these documents are taxed, but the overall tax requirements vary by state. Here’s what you need to know:
Gift Tax Rules
Unless you’re using them to transfer property between spouses, quitclaim deeds trigger the following tax implications:
- You must report the transfer to the IRS using Form 709.
- Grantors must pay gift taxes, which range from 18% to 40%.
Did you know? The IRS closely monitors parents transferring property to adult children to prevent tax avoidance.
Gift Tax Exemptions
In certain situations, quitclaim deeds may be exempt from gift tax rules. Here are a few examples:
- In 2023, individuals could gift up to $17,000 annually without incurring gift tax.
- Couples can jointly give up to $34,000.
- There’s a lifetime exemption of around $12.12 million.
Speak with a tax advisor to see if any exemptions apply to your specific situation.
Capital Gains Tax
Transferring property using a quitclaim deed can trigger capital gains tax in the following situations:
- If you use a quitclaim deed without an exchange of value, you may have to pay capital gains tax later.
- When the grantee decides to sell the property, they may have to pay taxes on the difference between the property’s value at the time of the original transfer and the selling price.
- The grantee must pay taxes on the profit earned from the sale.
Property Tax and Liens
Existing property taxes and liens apply to quitclaim deed transfers. Since quitclaim deeds don’t require a title search, people can easily overlook outstanding property taxes and liens.
If the grantor hasn’t paid the taxes and liens, the government may seize the property. In this case, a court can invalidate the transfer under a quitclaim deed.
Tax Exemptions
You might not have to pay any taxes on quitclaim deeds if you use them to:
- Clarify ownership.
- Change ownership following a divorce.
- Make a charitable donation.
- Move property into or out of a trust.
If you have questions about your tax requirements, speak with a trusted financial advisor.
What should be included in a quitclaim deed?
The following legal terms are essential for you to understand when transferring property ownership through a quitclaim deed:
Grantor: The Grantor (or the seller) transfers ownership and/or interest of an asset.
Grantee: The Grantee (or the buyer) is the individual who receives the transfer from the Grantor.
Consideration: It states the amount of value exchanged (if any) as part of the quitclaim deed and agreement.
Derivation clause: Detail the property’s history, including the previous owner’s name and transfer date to the current owner.
Granting clause: Also known as the Habendum Clause or the To-Have-and-To-Hold clause, this is a statement expressing the Grantor’s intent to give up any claims or interests in the property. It formally transfers property rights to the grantee.
Preparer: Sometimes called the drafter, the preparer is the individual who compiles the information and writes it in the deed.
Legal description: Used to identify the property transferred, it includes its precise location, physical measurements, and geographic details.
Use a Quitclaim Deed Form Template
To streamline the process of using quitclaims, download our free quitclaim deed form template at the top of this article. You can easily fill in this free printable PDF with your information.
We recommend using a property management software to securely store your deed in the cloud. Keeping these records on file creates a clear paper trail and helps you defend yourself if someone challenges your property rights.
Where to File Quitclaim Deeds in All 50 States
Here’s a state-by-state list of where to file a quitclaim deed:
We hope this article helps you understand everything there is to know about using a quitclaim deed. As mentioned, it’s always a good idea to consult a lawyer and a tax professional to make sure you understand your state’s specific requirements.
Free Quitclaim Deed Form FAQs
Can I fill out a quitclaim deed myself?
Yes, but it’s a best practice to work with a legal professional.
How does a quitclaim deed work?
Property owners use quitclaims to transfer real estate to a new owner or edit the property’s ownership.
Where can I get a blank quitclaim deed form?
Find a free quitclaim deed template at the top of this article!
Do I need a lawyer to do a quitclaim deed?
No, but we recommend using one to keep the process legally compliant and avoid mistakes.
What information is needed for a quitclaim deed?
- Grantor
- Grantee
- Consideration
- Derivation clause
- Granting clause
- Preparer
- Legal description
