What is a Quitclaim Deed in California?
A Quitclaim Deed in California is a quick method of transferring property ownership. It allows the property owner (“Grantor”) to transfer their interests in the property to a new owner (“Grantee”). Quitclaim deeds are a quick way to transfer property, yet, they provide the lowest level of security among real estate deeds in California.
The most common use of quitclaim deeds is between two parties with high levels of trust, such as family members or close friends.
What is the Difference Between a Quitclaim Deed, a Warranty Deed, and a Grant Deed in California?
The main difference between a quitclaim deed, a warranty deed, and a Grant deed in California lies in the level of protection they offer to the Grantee over the property’s title.
California offers two types of deeds: warranty deeds and grant deeds.
1. Warranty Deed
In California, a warranty deed provides the Grantee a complete assurance about the property’s title.
2. Grant Deed
In California, a grant deed offers a partial warranty of title. The Grantor assures that there have been no issues with the title during their period of ownership.
A quitclaim deed does not provide any assurances that the deed is free from defects. Both grant deeds and warranty deeds in California provide some assurance that the property does not have conflicts in ownership. A quitclaim deed, on the other hand, will only transfer the owner’s interest in the property.
How Do Quitclaim Deeds Work in California?
State law ruling quitclaim deeds can be found in the California Civil Code, under Division 2, titled Property. Quitclaim deeds are one of the ways to communicate the transfer of real property.
In California, a quitclaim deed must contain specific information, including the property’s Assessor Parcel Number (APN) and the amount of documentary transfer tax paid. Once drafted, the deed should be recorded at the County Recorder’s Office.
Can You Prepare Your Own Quitclaim Deed in California?
A professional drafter is not legally required in California. If a drafter does prepare the document, their name and address must be included in the deed.
California Quitclaim Deed Requirements
There are multiple requirements for formatting and content that need to be included in a quitclaim deed in California
Formatting Requirements.
Formatting requirements for quitclaim deeds in California include:
- Print only on one side of the paper.
- Paper size: between 8.5 x 11 to 8.5 x 14 inches.
- Maintain 0.5-inch margins on two sides for recording space.
- Allow 2.5-inch top space for recording info.
- Use the left 3.5-inch space for name and address.
- Ensure the deed has suitable font and ink.
- Text should have a maximum of 9 lines per vertical inch and 22 characters per horizontal inch, spanning at least 3 inches in a single sentence.
b) The person submitting the document may be asked to resubmit a clear original, ensuring that all aspects are reverified, including seals and certificates.
Content Requirements.
Content requirements for quitclaim deeds in California include:
- Grantor’s name.
- Grantee’s name.
- Date of execution.
- The address and a legal description of the property.
- Granting clause ( A statement expressing a Grantor’s intent to transfer interest in the property).
- Recipient’s name and address for new deed and future tax statements.
- The title “Quitclaim” noted below the top margin.
- The quitclaim deed must be in English. Non-English deeds must be translated (verified and certified), accompanied by a notarized declaration from the translator confirming accuracy.
- The amount due as Documentary Transfer Tax (DTT).
- The Assessor’s Parcel Number. The APN is available at the County Assessor’s Office.
- Title Insurance Disclosure
If the Grantee lacks title insurance, California law mandates a notice about title insurance in escrow transactions. The Grantee must sign and acknowledge the notice, which is worded as follows:
“IMPORTANT: IN A PURCHASE OR EXCHANGE OF REAL PROPERTY, IT MAY BE ADVISABLE TO OBTAIN TITLE INSURANCE IN CONNECTION WITH THE CLOSE OF ESCROW SINCE THERE MAY BE PRIOR RECORDED LIENS AND ENCUMBRANCES WHICH AFFECT YOUR INTEREST IN THE PROPERTY BEING ACQUIRED. A NEW POLICY OF TITLE INSURANCE SHOULD BE OBTAINED IN ORDER TO ENSURE YOUR INTEREST IN THE PROPERTY THAT YOU ARE ACQUIRING.”
Who Signs a Quitclaim Deed in California?
In California, quitclaim deeds require only the Grantor’s signature. The deed must be signed in the presence of a notary for authentication.
How to File a Quitclaim Deed in California
Here’s how to file a quitclaim deed in California:
- Prepare the quitclaim deed with the information required.
- Ensure the Grantor’s signature is notarized.
- File a Preliminary Change of Ownership Report. In California, whenever property ownership changes, this form must be filed with the quitclaim deed at the Recorder’s Office.
- Unless the deed qualifies for exemptions, ensure the tax amounts owed are paid.
- The quitclaim deed can be filed at the County Recorder’s Office, where the property is located.
How Much Does it Cost to File a Quitclaim Deed in California?
In California, the cost to file quitclaim deeds includes two separate types of fees.
- Each county charges base filing fees. The amount varies. However, the fee begins at $10 for the first page and $3 for each additional page.
- The Building Homes and Jobs Act Recording Fee is $75 per parcel of real property, with a maximum imposed fee capped at $225.
- If a quitclaim involves one land transfer, the cost is $75.00.
- For 4 or more lands transferred through a single quitclaim, the fee is $225 (not $75 X 4).
- When separate deeds transfer multiple lands, for instance, 5 deeds for 5 lands, the total is $375 ($75 X 5).
What Taxes Are Owed on Quitclaim Deeds in California?
In California, the purchase of property using a quitclaim deed triggers the following taxes that must be paid at the time of the transfer:
Documentary Transfer Tax
- The DTT is calculated at $1.10 per $1,000 (or $0.55 per $500.00) of the transfer value (sales price) of the property.
- In addition to the county DTT, a city transfer tax may be applied. The rate may vary; for instance, in Los Angeles, the city transfer tax rate is $4.50 per $1000.
If the quitclaim transfer does not involve any financial exchange, then no taxes are due.
Although California does not levy gift taxes on a state level, the transfer may still trigger the U.S. Gift (and Generation-Skipping Transfer) Tax (Form 709).
In California, a number of transfers that are generally filed under quitclaim deeds are tax-exempt, including:
- Instruments securing debt (mortgages)
- Transfers of partnership realty in specific cases.
- Transfers of community property as part of divorce proceedings.
- Transfers of lands or reality through gifts or inheritance.
- Tax exemption for conveyances of realty financed/refinanced by nonprofit corporations.
Finally, Capital Gains Tax is payable to the state as well as the federal government. Other federal taxes such as Gift Tax may also be applicable.
How Long Does a Quitclaim Deed Take to be Recorded in California?
The length of time to record a quitclaim deed in California varies greatly depending on the processes, procedures, and population of each county. For example, Orange County takes two to three weeks to record a deed.
What Happens After a Quitclaim Deed is Recorded in California
In California, once the quitclaim deed is signed and filed, the county will process the document, creating a public record of the transfer of ownership.
If the deed is clear of any previous filings, a public record of the transfer of the property’s ownership will be made official.
How Long Are Quitclaim Deeds Valid For in California?
There is no expiration for quitclaim deeds in California. However, the statute of limitations for challenging a deed in California is 4 years from the date the deed was recorded with the county.
Sources
- 1 California Civil Code § 1113
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From the use of the word “grant” in any conveyance by which an estate of inheritance or fee simple is to be passed, the following covenants, and none other, on the part of the grantor for himself and his heirs to the grantee, his heirs, and assigns, are implied..
Source Link - 2 California Gov Code Section 27361.5
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(a) As used in Section 27361, a page shall be one printed side of a single piece of paper being 81/2 inches by 11 inches.
Source Link - 3 California Gov Code Section 27361 (a)(1)
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If the printing on printed forms is spaced more than nine lines per vertical inch or more than 22 characters and spaces per inch measured horizontally for not less than three inches in one sentence
Source Link - 4 California Gov Code Section 27361.7.
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Whenever the text of a document presented for record may be made out but is not sufficiently legible to reproduce a readable photographic record..
Source Link - 5 California Civil Code Section 1092
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A grant of an estate in real property may be made in substance as follows:
I, A B, grant to C D all that real property situated in (insert name of county) County, State of California, bounded (or described) as follows: (here insert property description, or if the land sought to be conveyed has a descriptive name, it may be described by the name, as for instance, ‛The Norris Ranch.’)
Source Link - 6 California Gov Code Section 27321.5.(a)
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Every deed or instrument executed to convey fee title to real property shall have noted on the first page or sheet thereof the name and address to which future tax statements may be mailed.
Source Link - 7 California Gov Code Section 27293
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(1) Except as otherwise provided in subdivision, if an instrument, paper, or notice intended for record is executed or certified in whole or in part in a language other than English..
(2) A translation in English of an instrument, paper, or notice executed or certified in whole or in part in a language other than English may be presented to the county clerk for verification ..
Source Link - 8 California Revenue and Taxation Code 11901 - 11935
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11911.1: Any ordinance which imposes the documentary transfer tax may require that each deed, instrument or writing by which lands, tenements, or other realty is sold, granted, assigned, transferred, or otherwise conveyed, shall have noted upon it the tax roll parcel number.
Source Link - 9 California Gov Code Section 27297.7.
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(a) Following adoption of an authorizing resolution by the board of supervisors.. The recorder may require, as a condition of recording, that a deed, quitclaim deed, or deed of trust indicate the assessor’s identification number..
Source Link - 10 California Civil Code Section 1057.6
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In an escrow transaction for the purchase or simultaneous exchange of real property, where a policy of title insurance will not be issued to the buyer or to the parties to the exchange, the following notice shall be provided in a separate document to the buyer or parties exchanging real property, which shall be signed and acknowledged by them…”
Source Link - 11 California Civil Code Section 1189
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Any certificate of acknowledgment taken within this state shall include a notice at the top of the certificate of acknowledgment in an enclosed box stating: “A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.” This notice shall be legible.
Source Link - 12 California Revenue and Taxation Code 480 - 487
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Change in Ownership Reporting (a) Whenever there occurs any change in ownership of real property, a manufactured home, or a floating home that is subject to local property taxation and is assessed by the county assessor…. In the case of a change in ownership where the transferee is not locally assessed, no change in ownership statement is required.
Source Link - 13 California Revenue and Taxation Code 11933
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If a county has imposed a tax pursuant to this part, the recorder shall not record any deed, instrument, or writing subject to the tax imposed pursuant to this part, unless the tax is paid at the time of recording.
Source Link - 14 California Civil Code Section 1169
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Instruments entitled to be recorded must be recorded by the County Recorder of the county in which the real property affected thereby is situated.
Source Link - 15 California Government Code Section 27361
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(a) The fee for recording and indexing every instrument, paper, or notice required or permitted by law to be recorded shall not exceed ten dollars ($10) for recording the first page and three dollars ($3) for each additional page.
Source Link - 16 California Government Code Section 27388.1
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(a) (1) Commencing January 1, 2018, and except as provided in paragraph (2), in addition to any other recording fees specified in this code, a fee of seventy-five dollars ($75) shall be paid … The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225).
Source Link - 17 California Revenue and Taxation Code 11933
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(a) The board of supervisors of any county or city and county, by an ordinance adopted pursuant to this part, may impose, on each deed, instrument, or writing by which any lands, tenements… exceeds one hundred dollars ($100) a tax at the rate of fifty-five cents ($0.55) for each five hundred dollars ($500) or fractional part thereof.
Source Link - 18 California Revenue and Taxation Code 11921
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Chapter 3, 11921-11931 list the exemption permissible under the California Code.
Source Link - 19 California Code of Civil Procedure 337
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Within four years: (a) An action upon any contract, obligation or liability founded upon an instrument in writing, except as provided in Section 336a; provided..
Source Link