What is a Quitclaim Deed in Georgia?
A Quitclaim Deed in Georgia 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 Georgia.
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 and a Warranty Deed in Georgia?
The main difference between a quitclaim deed and warranty deeds in Georgia lies in the level of protection they offer to the Grantee over the property’s title.
Georgia offers two types of warranty deeds: General warranty deeds and Limited warranty deeds.
1. General Warranty Deed
In Georgia, a general warranty deed provides complete assurance from the current owner that the deed is free from issues.
2. Limited Warranty Deed
A limited warranty deed (also known as a “Special Warranty Deed”) is an assurance from the current owner 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 general warranty and limited warranty deeds in Georgia 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 Georgia?
State law ruling quitclaim deeds can be found in the Georgia Code, under Title 44, Property. Quitclaim deeds are one of the ways to communicate the transfer of real property. In Georgia, a quitclaim deed must contain specific information, including the terms to which both parties agree. Once drafted, the deed should be registered with the Clerk of the Superior Court.
Can You Prepare Your Own Quitclaim Deed in Georgia?
A professional drafter is not legally required in Georgia. If a drafter does prepare the document, their name and address must be included in the deed.
Georgia Quitclaim Deed Requirements
There are multiple requirements for formatting and content that need to be included in a quitclaim deed in Georgia
Formatting Requirements.
Formatting requirements for quitclaim deeds in Georgia include:
- The deed should be on 8 1/2 inch by 11 inches or 8 1/2 inch by 14-inch paper or the digital equivalent.
- There should be a three-inch margin at the top to allow space for official use.
Content Requirements
Content requirements for quitclaim deeds in Georgia include:
- Grantor’s name and address
- Grantee’s name and address.
- The title “Quitclaim” is noted below the 3-inch margin.
- Date of execution.
- Tax Parcel Identification Number.
- The property’s address.
- Detailed property description, including pins, markers, metes, and bounds.
- Consideration clause (the amount of money exchanged)
- Granting clause (statement describing the transfer the parties have agreed to)
- The return name and address should be atop the first page under ‘Return To’.
Who Signs a Quitclaim Deed in Georgia?
The Grantor must sign the deed in the presence of two witnesses. One of these two witnesses must be an “official witness” who is almost always a notary public.
How to File a Quitclaim Deed in Georgia
Here’s how to file a quitclaim deed in Georgia:
- Prepare the quitclaim deed with the information required.
- Ensure the Grantor signs the quitclaim deed in the presence of two witnesses, including one official witness.
- If the quitclaim transfer qualifies to pay a transfer tax, the payment must be made at the superior court clerk where the deed is recorded. Unless the deed qualifies for an exemption, the tax must be paid in order to be recorded.
- File the original deed at the county’s Superior Court Clerk‘s office where the property is situated.
- The quitclaim deed is fully executed upon delivery to the Grantee, who becomes legally bound by its terms upon acceptance, even without signing it.
How Much Does it Cost to File a Quitclaim Deed in Georgia?
The cost to file a quitclaim deed in Georgia is $25 per document.
What Taxes Are Owed on Quitclaim Deeds in Georgia?
In Georgia, the purchase of property using a quitclaim deed triggers three separate taxes:
- Transaction Tax: State transaction tax is calculated on the property’s sale price at the rate of $1 for the first $1,000 (and 10 cents for each extra $100) County Transfer Tax.
- Intangibles Tax: An intangible tax is imposed on long-term property loans at a rate of $1.50 per five hundred ($3.00 per thousand) based upon the borrowed.
- Georgia Residential Mortgage: This tax is a $10 fee due at the closing of each mortgage loan transaction. The loan agent will collect and pay the amount to the Georgia Department of Banking and Finance.
In Georgia, a number of transfers that are generally filed under quitclaim deeds are tax-exempt, including:
- Instruments securing debt.
- Deeds of gift.
- Transfers between divorcing spouses.
- Property transfers by specific legal roles without value exchanged.
- Property division among joint owners without other exchange.
Finally, federal taxes such as Gift Tax and Capital Gains Tax may also be applicable.
How Long Does a Quitclaim Deed Take to be Recorded in Georgia?
The length of time to record a quitclaim deed in Georgia varies greatly depending on the processes, procedures, and population of each county. For example, Clayton County takes two to three weeks to record a deed.
What Happens After a Quitclaim Deed is Recorded in Georgia
In Georgia, 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 Georgia?
There is no expiration for quitclaim deeds in Georgia. However, the statute of limitations for challenging a deed in Georgia is 6 years from the date the deed was recorded with the county.
Sources
- 1 Georgia Code § 44-5-62
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A general warranty of title against the claims of all persons includes covenants of a right to sell, of quiet enjoyment, and of freedom from encumbrances.
Source Link - 2 Georgia Non-Warranty Deed
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“Quit claim deeds, also called a non-warranty deeds, are sometimes used to transfer property as well as clear titles. Sellers tend to be more willing to transfer property through quit claim deeds. However, quit claim deeds offer no warranty that the grantor owns or has any rights to transfer the property.”
Source Link - 3 Georgia Code § 15-6-61
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or the clerk’s notation required by this paragraph.
Source Link - 4 Georgia Ga. Code § 15-6-63
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(a) The clerk of the superior court, prior to recordation of any deed which has the effect of transferring title, shall obtain the name and address of the grantor(s) and the grantee.
Source Link - 5 Ga. Code § 15-6-61 (4. -10)
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“…and shall have a three-inch margin at the top to allow space for the clerk’s notation required by this paragraph….”
Source Link - 6 Strickland v. CMCR Investments (2005)
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Strickland v. CMCR Investments, LLC, 279 Ga. 112, 610 S.E.2d 71 (Ga. 2005)
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“In Strickland, the deed was declared invalid because it contained no metes or bounds, any reference to pins, markers, or any object.” - 7 Georgia Code § 44-2-14
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“…the name and mailing address of the natural person to whom the affidavit or instrument is to be returned is legibly printed, typewritten, or stamped upon such affidavit or instrument at the top of the first page thereof.”
Source Link - 8 Georgia Code § 44-2-15
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Any of the instruments enumerated in Code Section 44-2-14 may be attested by a judge of a court of record, including a judge of a municipal court, or by a magistrate, a notary public, or a clerk or deputy clerk of a superior court or of a city court created by special Act of the General Assembly.
Source Link - 9 Georgia Code § 44-5-30
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“.. a deed to lands shall be an original document, in writing, signed by the maker, attested by an officer as provided in Code Section 44-2-15..”
Binding effect of covenants on grantee who accepts deed. When a grantee accepts a deed, he is bound by the covenants contained therein even though the deed has not been signed by him.
Source Link - 10 Georgia Code § 44-2-1
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Every deed conveying lands shall be recorded in the office of the clerk of the superior court of the county where the land is located.
Source Link - 11 Georgia Code § 15-6-77
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(f)(1a)(i) Filing each instrument pertaining to real estate including, but not limited to, each deed, deed of trust, affidavit, release, notice, certificate, cancellation, assignment, notice filing for Uniform Commercial Code related real estate, and assignment of a security deed or mortgage $ 25.00
Source Link - 12 Georgia Code 48-6-1.
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Transfer tax rate: There is imposed a tax at the rate of $1.00 for the first $1,000.00 or fractional part of $1,000.00 and at the rate of 10 cent(s) for each additional $100.00 or fractional part of $100.00 on each deed..
Source Link - 13 Georgia Code 48-6-61.
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“….There is imposed on each instrument an intangible recording tax at the rate of $1.50 for each $500.00 or fraction thereof of the face amount of the note secured by the recording of the security instrument..”
Source Link - 14 Georgia Code 7-1-1011
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(2) “…..by a mortgage broker or mortgage lender licensee or registrant, a fee of $10.00. The fee shall be paid by the borrower to the collecting agent at the time of closing of the mortgage loan transaction..”
Source Link - 15 Georgia Code 48-6-2
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Section 48-6-2 – Exemption of certain instruments, deeds, or writings from real estate transfer tax; requirement that consideration be shown. (a) The tax imposed by Code Section 48-6-1 shall not apply to… “
Source Link - 16 Georgia Code 9-3-24
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Actions on simple written contracts; exceptions. All actions upon simple contracts in writing shall be brought within six years after the same become due and payable.
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