What is a Quitclaim Deed in New Jersey?
In New Jersey, quitclaim deeds are used to transfer property from the owner (“Grantor”) to the new owner (“Grantee”) without any promises or guarantees about the property’s title or condition. Quitclaim deeds are a quick way to transfer property but offer the lowest security among real estate deeds in New Jersey.
What is the Difference Between a Quitclaim Deed and a Warranty Deed in New Jersey?
The main difference between quitclaim deeds and warranty deeds in New Jersey is that quitclaim deeds provide less protection to the new owner.
Warranty deeds provide strong legal protection. With a quitclaim deed in New Jersey, the Grantor confirms that they truly own the property and they have the right to transfer it.
For this reason, warranty deeds are the preferred choice for real estate transactions in New Jersey. Quitclaim deeds on the other hand are mostly used among family and friends.
How Do Quitclaim Deeds Work in New Jersey?
In New Jersey, most laws surrounding quitclaim deeds are found in Title 46 of the state’s property statutes.
A quitclaim deed in New Jersey must include the terms “remise, release and forever quitclaim unto the said grantee” or “the grantor does grant and release to the said grantee.” The deed must specify that the Grantor is giving up any interest in the property to the Grantee.
Once prepared, the quitclaim deed must be filed with the County Clerk’s Office.
Can You Prepare Your Own Quitclaim Deed in New Jersey?
You can prepare your own quitclaim deed in New Jersey. A professional drafter is not legally required.
However, if someone prepares the deed, their name must be included at the top of the first page under “Prepared by.”
New Jersey Quitclaim Deed Requirements
There are multiple requirements for formatting and content that need to be included in a quitclaim deed in New Jersey.
Formatting Requirements
Formatting requirements for quitclaim deeds in New Jersey include:
- Paper size: no larger than 8.5 X 14 inches.
- Font size: minimum 10 points.
Content Requirements
Content requirements for quitclaim deeds in New Jersey include:
- Grantor’s name and address.
- Grantee’s name and address.
- The title on top as “Quitclaim Deed.”
- The property’s address.
- Property legal description.
- The property’s tax map reference.
- English language; non-English deeds must have a translation attached.
- Consideration clause:
- The price paid must be specified in the deed and attached as an affidavit.
- The State of New Jersey offers an official form (Affidavit of Consideration, Form RTF-1) to report consideration.
Who Signs a Quitclaim Deed in New Jersey?
The Grantor must sign the quitclaim deed and their name must be printed directly below the signature. A witness, often the notary or attorney, must also sign for acknowledgment and proof.
If the Grantor is married and the property is the principal residence, both spouses must sign the quitclaim deed. Alternatively, a spousal waiver of homestead rights can be signed and attached.
How to File a Quitclaim Deed in New Jersey
Here’s how to file a quitclaim deed in New Jersey:
- Prepare the quitclaim deed with the information required.
- Ensure the Grantor signs the deed in the presence of a notary.
- Fill and attach an Affidavit of Consideration, Form RTF-1.
- The consideration (the price paid, if any) must be specified in the deed and attached as an affidavit.
- New Jersey offers an official form (Affidavit of Consideration, Form RTF-1) to report consideration or the price paid (if any.)
4. Some counties in New Jersey may require a cover sheet
5. Complete and attach the New Jersey Gross Income Tax Requirement (GIT/REP) for transfers/sales of Real Property forms.
How Much Does it Cost to File a Quitclaim Deed in New Jersey?
The filing fees for a quitclaim deed in New Jersey vary by county. Typically, it costs $30 to $40 for the first page and an additional $10 for each additional page.
What Taxes Are Owed on Quitclaim Deeds in New Jersey?
In New Jersey, the transfer of a property through a quitclaim deed can trigger the following taxes:
- Realty Transfer Fee (RTF)
- New Jersey RTF taxes are owed on all transfers/sales of property with “consideration” (value exchanged) over $100.
- The amount must be paid before the deed is recorded, usually by the Grantor.
- The RTF amount due for each transfer is calculated as follows:
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- For property values up to $150,000 : $2.00 for the first $500 or part thereof.
- For property values over $150,000 : $3.35 for each $500 or part thereof.
- For property values over $200,000 : $3.90 for each $500 or part thereof.
- The realty transfer fee will be exempt if any of the following apply:
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- Deed for consideration under $100.
- Deed between spouses or parents and children.
- Deed recorded within 90 days after divorce.
- Deed involving the U.S., New Jersey, or agencies.
- Deed for security of a debt or obligation.
- Deed to confirm or correct a previous one.
2. Gross Income Tax Declaration.
- In New Jersey, the Grantor (seller) must sign and attach a Gross Income Tax (GIT/REP) declaration form when transferring or selling real property along with the deed.
- The New Jersey Division of Taxation provides the forms (listed below):
- Form GIT/REP-1: Non-resident Grantor/seller submitting tax declaration for estimated Payments.
- Form GIT/REP-2: Non-resident Grantor/seller who prepaid taxes uses a Division of Taxation-endorsed receipt.
- Form GIT/REP-3: Resident Grantor/sellers or those exempt from prepayment submit a Residency Certification/Exemption.
- Form GIT/REP-4: Sellers with a tax waiver from the New Jersey Division of Taxation submit a Filing Requirement Waiver.
- Form GIT/REP-4A – Property owners filing a corrective deed with no added consideration submit a Corrected Deed Filing Waiver.
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 New Jersey?
The time it takes to record a quitclaim deed in New Jersey depends on the processes, procedures, and population of each county. It can take anywhere from a few days to a few weeks.
What Happens After a Quitclaim Deed is Recorded in New Jersey?
Once the quitclaim deed is signed and filed, the county will process the document.
If the deed is clear of any previous filings, the transfer of the property’s ownership will be made official.
How Long Are Quitclaim Deeds Valid For in New Jersey?
There is no expiration for quitclaim deeds in New Jersey. However, the statute of limitations for challenging a deed in New Jersey is 6 years.
Sources
- 1 N.J. Stat. § 46:5-1:
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“ Whenever, in any deed heretofore or hereafter executed and recorded, there shall have been or may be used the words “the grantor releases to the said grantee” , or the words “the grantor does remise, release and forever quitclaim unto the said grantee” , or the words “the grantor does grant and release to the said grantee”..
Source Link - 2 N.J. Stat. § 46:26a-6
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a. The county recording officer shall record any document or map affecting the title to real property located in the county, delivered for recording, provided the document:
Source Link - 3 N.J. Stat. § 46:26a-3 (c)
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Prerequisites for recording. (c) includes the name of the person who prepared the deed..
Source Link - 4 N.J. Stat. § 46:26a-5
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To be accepted for recording, a document or its image shall be either: (1) legibly printed on paper no larger than 81/2 inches by 14 inches..
Source Link - 5 N.J. Stat. § 46:26a-5 (b) 1.
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The nature of the document;
Source Link - 6 N.J. Stat. § 25:1-11
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a description of the real estate sufficient to identify it, the nature of the interest, the fact of the transfer and the identity of the transferor and the transferee are established in a writing signed by or on behalf of the transferor; or
Source Link - 7 N.J. Stat. § 46:26a-3 (a)(5) (b)
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includes a reference to the lot and block number of the real property conveyed as designated on the tax map of the municipality at the time of the conveyance or the account number of the real property.
Source Link - 8 N.J. Stat. § 46:26a-3:
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The document is in English or accompanied by a translation into English;
Source Link - 9 N.J. Stat. § 46:15-6(a)
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If the transfer is subject to any fee established under section 3 of P.L.1968, c.49 (C.46:15-7) or section 2 of P.L.2003, c.113 (C.46:15-7.1), a statement of the true consideration for the transfer shall be contained in the deed
Source Link - 10 N.J. Stat. § 46:26a-3
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(3) the document (including a corrected document submitted for re-recording) is acknowledged or proved as provided by Title 46 of the Revised Statutes;
Source Link - 11 N.J. Stat. § 46:26a-5
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b. A document or its image accepted for recording may be accompanied by a cover sheet or an electronic synopsis separate from the document or integrated with the document.
Source Link - 12 N.J. Stat. § 46:26a-5
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County clerks and registers of deeds and mortgages, in counties having such offices, shall charge for the services herein enumerated the following fees… For recording any instrument: First page $30.00; Each additional page or part thereof $10.00..
Source Link - 13 N.J. Stat. § 46:15-7
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N.J. Stat. § 46:15-7 – Realty transfer fees.
Source Link - 14 NJ Division of Taxation
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i) NJ Division of Taxation – Rates, Standard Transactions and New Construction. Total Consideration not Over $350,000
Source Link
ii) Fee Schedule – Realty Transfer Fee Consideration in excess of $350,000 - 15 N.J. Stat. § 46:15-10
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Exemptions from realty transfer fee. The fee imposed by this act shall not apply to a deed..
Source Link - 16 N.J. Stat. § 54A:8-8
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Definitions relative to payment of estimated gross income tax on real property sales by nonresidents.
Source Link - 17 N.J. Stat. 2A § 14-1
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Every action at law for trespass to real property.. agents and servants, shall be commenced within 6 years next after the cause of any such action shall have accrued.
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