What is a Quitclaim Deed in Pennsylvania?
In Pennsylvania, a quitclaim deed is used to transfer property from an 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 they offer the lowest security among real estate deeds in Pennsylvania.
The most common use of quitclaim deeds is between parties with high levels of trust, such as family members or friends.
What is the Difference Between a Quitclaim Deed and a Warranty Deed in Pennsylvania?
The main difference between quitclaim deeds and warranty deeds in Pennsylvania is that a quitclaim deed provides less security to the Grantee.
A warranty deed provides legal protection to the new owner because it confirms that the Grantor owns the property and has the right to make a transfer.
Warranty deeds are used for most real estate transactions in Pennsylvania. Quitclaim deeds, on the other hand, are typically used for transfers between family and friends.
How Do Quitclaim Deeds Work in Pennsylvania?
Laws surrounding quitclaim deeds are found in Title 21 of the Pennsylvania Statutes, titled Deeds and Mortgages.
Pennsylvania laws provide the sample language to be used in a quitclaim deed. It must state that the Grantor intends to “release and quitclaim.” On the other hand, phrases such as “grant and convey” and “bargain and sell” are avoided as they imply a warranty of title quality.
Once prepared, the quitclaim deed must be filed with the County Recorder’s Office.
In counties with over 500,000 residents, quitclaim deeds must be registered with the county commission office before being submitted to the recorder of deeds.
Counties in Pennsylvania with over 500,000 residents are:
- Philadelphia County
- Allegheny County
- Bucks County
- Delaware County
- Lancaster County
- Montgomery County
Can You Prepare Your Own Quitclaim Deed in Pennsylvania?
You can prepare your own quitclaim deed in Pennsylvania. A professional drafter is not legally required.
Some Pennsylvania counties, including Philadelphia, require a “prepared by” statement with the name, address, and phone number of the person who prepared the deed.
Pennsylvania Quitclaim Deed Requirements
For a quitclaim to be legally valid in Pennsylvania, the deed must follow certain state-specific rules.
Formatting Requirements
Formatting requirements for quitclaim deeds in Pennsylvania include:
- Paper size: letter (8.5 x 11) or legal (8.5 x 14).
- Font: minimum of 10 points.
- Margins: 3-inch top on the first page, 1-inch on all other sides.
- Printed or typed, no handwritten information.
- Pages numbered sequentially (including attachments).
- Paper weight: 20lb; white or off-white only.
- Print on one side only.
Content Requirements
Content requirements for quitclaim deeds in Pennsylvania include:
- Grantor’s name and address.
- Grantee’s name and address.
- “Prepared by” – name, address, and phone number on the top left.
- “Return to” – name, address, and phone number on the top left.
- Granting clause – statement describing the transfer the parties have agreed to.
- Consideration clause – the value or the amount of money exchanged.
- The execution date must not precede the acknowledgment date.
- Property address.
- Property description.
- Uniform parcel identification number.
Who Signs a Quitclaim Deed in Pennsylvania?
For a quitclaim deed to be legally valid in Pennsylvania, it must be signed by the Grantor.
The Grantor’s signature must be acknowledged before a notary or an authorized officer in the county where the property is located. Alternatively, two witnesses present during the execution can acknowledge the quitclaim deed with a notary or authorized officer.
The execution date of the deed must not precede the acknowledgment date.
How to File a Quitclaim Deed in Pennsylvania
Here’s how to file a quitclaim deed in Pennsylvania:
- Prepare the quitclaim deed with the information required.
- Include a Realty Transfer Tax – Statement of Value if the amount exchanged for the property transfer is not mentioned on the deed.
- Ensure the Realty Transfer Tax is paid at the county Recorder of Deeds when the deed is submitted or within 30 days of the new owner’s acceptance.
- In Philadelphia County, a Philadelphia Real Estate Transfer Tax Certification must be completed.
- Once the quitclaim deed is signed and executed, ensure that it is acknowledged by a notary or public official.
- Alternatively, two witnesses present during the execution can have the deed acknowledged before a notary or official.
- If the property transfer is a residential real estate transaction, the Grantor must fill out a Pennsylvania Property Disclosure Statement detailing any known defects to potential buyers.
- The Grantee must sign a Certificate of Residency specifying their residence and postal address. The certificate will be recorded with the deed.
- File the quitclaim deed and the relevant information with the County Recorder’s Office.
How Much Does it Cost to File a Quitclaim Deed in Pennsylvania?
In Pennsylvania, the minimum charges for filing a deed are as follows:
- Fees for deeds up to four pages are $10.
- An additional charge of $2 is charged for each extra page.
- $1 is charged for each Grantor or Grantee beyond four.
However, the actual filing fees charged by counties can vary and are often higher. For instance, in Lancaster County, the fee for recording a 4-page deed is $70.25.
What Taxes Are Owed on Quitclaim Deeds in Pennsylvania?
The transfer of a property through a quitclaim deed triggers the following Realty Transfer Tax in Pennsylvania:
- 1% of the real estate value transferred.
- Tax is paid at the County Recorder’s Office upon deed submission or within 30 days of the new owner’s acceptance.
In Pennsylvania, many transfers that are generally filed under quitclaim deeds are tax-exempt, including:
- Deeds among close family members, without consideration.
- Deeds correcting errors.
- Divorce-related deeds between former spouses.
- Deeds to a trustee without consideration.
- Deeds from a business entity to a long-term (at least two years) owner.
How Long Does a Quitclaim Deed Take to be Recorded in Pennsylvania?
Recording time for a quitclaim deed in Pennsylvania varies by county and population. It can take a few days to a few weeks.
What Happens After a Quitclaim Deed is Recorded in Pennsylvania?
Once the quitclaim deed is signed and filed in Pennsylvania, the county will process the document. If the deed is clear of any previous filings, a public record of the transfer of the property ownership will be made official.
How Long Are Quitclaim Deeds Valid For in Pennsylvania?
There is no expiration for a quitclaim deed in Pennsylvania. However, the statute of limitations for a Quiet Title Action is 10 years. Quiet title action is a legal procedure used to clarify property ownership, especially when there’s uncertainty about title ownership.
Additionally, the statute of limitations for breaching a contract in Pennsylvania is 4 years.
Sources
- 1 Penn Stats 21 § 7
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Release and quitclaim” construed. Whenever, in any deed or instrument in writing for conveying or releasing land, there shall be used the words “release and quit claim,” such deed or instrument in writing..
Source Link - 2 Penn Stats 21 P.S. § 4
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i) Penn Stats 21 P.S. § 4
Words grant and convey import covenants of title and quiet enjoyment. The words “grant and convey,” or either one of said words, in any deed or instrument in writing for conveying or releasing land hereafter executed..Force and effect of words “grant, bargain,” etc. All deeds to be recorded in pursuance of this act, whereby any estate of inheritance in fee simple shall hereafter be limited to the grantee and his heirs, the words grant, bargain, sell, shall..
Source Link - 3 Penn Stats 21 P.S. § 321
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“… all deeds and other conveyances of real estate, in the several counties of this commonwealth having a population of over five hundred thousand, shall be registered in the office of the county commissioners before being entered of record in the office of the recorder of deeds.
Source Link - 4 Pennsylvania County Class Sizes
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Pennsylvania counties’ class size is based on the population within the county..
Source Link - 5 Department of Recording, Philadelphia
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16. Each document must comply with .. with the left hand containing “Prepared by”..
Source Link - 6 Penn Stats 42 P.S. § 21056
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Size of documents accepted for recording. The recorder of deeds may charge twice the ordinary fee for accepting any document for recording which is larger than 8 ½ by 14 inches in size. Subdivision maps,
Source Link - 7 Penn Stats 16 P.S. § 9781.1
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Uniform parcel identifier. A county with the written recommendation of its recorder of deeds or commissioner of records may, by ordinance of its governing body, require that the recorder of deeds or commissioner of records of said county..
Source Link - 8 Penn Stats 21 § 10
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“… and all such instruments in writing, signed by the grantors, but with no seal affixed thereto, shall be deeds for all purposes within the purview of all acts or parts of acts of Assembly relating to or concerning deeds for the conveyance or releasing of lands.
Source Link - 9 Penn Stats 21 § 42
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All bargains and sales, deeds and conveyances of lands, tenements and.. before the same shall be so recorded, the parties concerned shall procure the grantor or bargainer named in every such deed, or else two or more of the witnesses (who were present at the execution thereof)..
Source Link - 10 Penn Stats 72 § 8109-C
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(a) Every document lodged with or presented to any recorder of deeds in this Commonwealth for recording… or shall be accompanied by a statement of value executed by a responsible person connected with the transaction showing such connection..
Source Link - 11 Real Estate Transfer Tax certificates
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When you complete a sale or transfer of real estate that is located in Philadelphia, you must file and pay the Realty Transfer Tax…
Source Link - 12 Penn Stats 68 § 7303
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Any seller who intends to transfer any interest in real property shall disclose to the buyer any material defects with the property known to the seller..
Source Link - 13 Penn Stats 16 § 9781
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Certificate as to grantee’s residence; lists certified to board of revision of taxes… a certificate, signed by said grantee or grantees, or someone on his, her or their behalf, setting forth the precise residence and the complete post office address of such grantee or grantees, said certificate to be recorded with said deed;
Source Link - 14 Penn Stats 16 § 11411
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The fees to be charged and collected by the recorder of deeds, in counties of the second class, shall be as follows: For recording deeds, the minimum fee for not more than four legal pages shall be ten dollars ($10.00); and for each additional page or fraction thereof, two dollars ($2.00) extra.
Source Link - 15 Lancaster County, PA - Recorder of Deeds
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Recording Fees: BASE fee for recording Deeds and Mortgages Maximum of 4 pages $70.25
Source Link - 16 Penn Stats 72 § 8102-C
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Every person who makes, executes, delivers, accepts or presents for recording any document or in whose behalf any document is made, executed, delivered, accepted or presented for recording, shall be subject to pay …a State tax at the rate of one per cent of the value of the real estate within this Commonwealth represented by such document, which State tax shall be payable at the earlier of the time the
Source Link - 17 Penn Stats 72 § 8102-C.3
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Excluded transactions. The tax imposed by section 1102-C1 shall not be imposed upon..
(1) A transfer to the Commonwealth or to any of its instrumentalities, agencies or political subdivisions by gift, dedication or deed in lieu of …
Source Link - 18 Penn Stats 42 § 5527.1
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Ten-year limitation. (c) Quiet title action required. (1) A possessor who seeks to acquire title to real property under this section must, after meeting the requirements of subsections (a) and (b), commence a quiet title action and provide notice as required in this section.
Source Link - 19 Penn Stats 42 § 5525
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(a) General rule.–Except as provided for in subsection (b), the following actions and proceedings must be commenced within four years: (1) An action upon a contract…
Source Link