What is a Quitclaim Deed in Tennessee?
A quitclaim deed in Tennessee is a legal document mainly used to transfer real property between a Grantor (current owner) and Grantee (new owner), usually between family members and close friends. Quitclaim deeds don’t promise a clear title, and the Grantee has limited legal options if issues arise.
What Is the Difference Between a Quitclaim Deed and a Warranty Deed in Tennessee?
The main difference is that a quitclaim deed is faster, but does not ensure a valid title. A warranty deed guarantees the property is free and clear of any ownership conflicts, but is a longer process to confirm all information is correct and in compliance with local, state, and federal law.
How Do Quitclaim Deeds Work in Tennessee?
In Tennessee, most laws surrounding quitclaim deeds can be found in Title 66 of the Tennessee Code which governs property. Quitclaim deeds are one of the ways to communicate the transfer of real property.
A quitclaim deed must include language that shows the seller’s intention to give up any rights or interests in the property to the buyer. Once the deed is drafted, it must be registered at the Recorder’s Office in the county where the property is located.
Who Can Prepare a Quitclaim Form in Tennessee?
A professional drafter is not legally required in Tennessee. However, if a drafter does prepare the deed, their name and address must be included.
Tennessee Quitclaim Deed Requirements
There are multiple requirements for formatting and content that need to be included in a quitclaim deed in Tennessee.
Formatting Requirements
Formatting requirements for quitclaim deeds in Tennessee include:
- Papers should be between 8.5 x 11 inches and 8.5 x 14 inches.
- Electronic deeds need a minimum 10-point font.
- Deeds must be legible.
- English Language.
- The county register may refuse to register non-English deeds.
- Translations can be used with an affidavit attached.
Content Requirements
Content requirements for quitclaim deeds in Tennessee include:
- Grantor and Grantee’s names
- Grantor and Grantee’s addresses
- Grantor and Grantee’s marital status
- Preparer’s full name and address
- Date of transfer
- Property address
- Property Description.
- If description is the same, note prior deed.
- If new, include surveyor’s details.
- Parcel Identification Number :
- Consideration – Value or money exchanged (if any).
- Granting Clause – Grantor’s intent to transfer property interest.
- Derivation Clause :
States owner’s right source, deed type, book, page, recording office.
- Tax Bill Name and Address
Who Signs a Quitclaim Deed in Tennessee?
In Tennessee, quitclaim deeds require a signature from the Grantor and Grantee. The Grantor must have their signature notarized by a notary, or they can sign the deed in front of two witnesses.
If the Grantor is married and the property is registered as a homestead, both spouses must sign the quitclaim deed. Alternatively, a spousal waiver of homestead rights can be signed and attached.
In Tennessee, documents can be notarized online using live, two-way audio video systems by a registered Online Notary Public.
How to File a Quitclaim Deed in Tennessee
Here’s how to file a quitclaim deed in Tennessee:
- The Grantor needs to acquire a quitclaim deed form from the county register of deed’s office where the property is located.
- The form needs to be signed by all required parties.
- The Grantor files the deed with the county Register of Deeds.
Forms and filing instructions can be obtained on the county’s website or in person.
How Much Does It Cost to File a Quitclaim Deed in Tennessee?
The cost of a quitclaim deed in Tennessee depends on the county where the deed is to be filed. Most counties charge $5 per page with a $10 minimum. Additionally, the processing fee alone is usually $2 per document.
What Taxes Are Owed on Quitclaim Deeds in Tennessee?
In Tennessee, the transfer of property using a quitclaim deed triggers two separate taxes:
1. Realty Transfer Tax – Realty transfer taxes are required in the amount of 37 cents per $100 for any deed used in the sale of real property.
2. Mortgage Tax – Also known as the “indebtedness tax,” mortgage tax in Tennessee is charged in the amount of 11.5¢ per $100, after the first $2,000 of debt.
If the property is transferred without any value exchanged return (which is common for quitclaim deeds), then no taxes are due.
Depending on the county or town the property is located, property taxes may be imposed on the new owner at the time of closing.
How Long Does a Quitclaim Deed Take to be Recorded in Tennessee?
The length of time to record a quitclaim deed in Tennessee varies greatly depending on the processes, procedures, and population of each county. For example, Shelby County takes one business day to register a deed.
What Happens After a Quitclaim Deed is Recorded in Tennessee?
Quitclaim deeds are valid once signed, recorded, and registered in Tennessee. Once that happens, the property has legally transferred ownership. Recording of a deed provides validity between the parties to the real estate transaction. However, registration is needed to provide actual notice to third parties such as creditors.
How Long Are Quitclaim Deeds Valid For in Tennessee?
There is no expiration for quitclaim deeds in Tennessee. However, the statute of limitations for challenging a deed is 6 years from the date the deed was recorded with the county.
Sources
- 1 Tenn. Code § 66-5-103(2)
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The following or other equivalent forms, varied to suit the precise state of facts, are sufficient for the purposes contemplated, without further circumlocution… (2) For a quitclaim deed: “I hereby quitclaim to A. B. all my interest in the following land” (describing it)…
Source Link - 2 Tenn. Code § 66-24-104
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All deeds, bills of sale, agreements, and other instruments for the conveyance or mortgage of personal property shall be registered in the county where the vendor or person executing the same resides, and, in case of nonresidence of the vendor or the person executing, where the property is.
Source Link - 3 Tenn. Code § 66-24-115 (a)
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(1) No instrument by which the title to real estate or personal property, or any interest therein, or lien thereon, is conveyed, created, encumbered, assigned or otherwise affected, or disposed of, nor any power of attorney…
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(2) An instrument will be in compliance with this section if it contains a statement in the following form: “This instrument was prepared by (name) (address) ”.. - 4 Tenn. Code § 8-21-1001(a)(b)(3)
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or each document that may be registered, other than documents filed pursuant to the Uniform Commercial Code, compiled in title 47, chapters 1-9, and other than a military discharge, plat, map or survey, page size not to exceed 8 ½″ x 14″
Source Link - 5 Tenn. Code Ann § 66-24-101(3)
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An electronic document must be certified by either a licensed attorney or the custodian of the original version of the electronic document and the signature of that person must be acknowledged by a notary public..
Source Link - 6 Tenn. Code § 66-24-101(c)
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Writings eligible for registration — Refusal to register documents not in English.. The county register may refuse to register any writing eligible for registration in accordance with this title if this writing is wholly or substantially written in any language other than English..
Source Link - 7 Tenn. Code § 66-24-121(a)
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No deed of conveyance of real property, except for a deed of trust or mortgage, shall be prepared unless there is included at the end of the legal description the name, license number and address of the surveyor who prepared…
Source Link - 8 Tenn. Code § 66-24-122.
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(a) A deed or other instrument transferring ownership of real property, but not including a deed of trust or mortgage, shall indicate the parcel identification number assigned by the county assessor of property …
Source Link - 9 Tenn. Code § 66-24-110 (a)
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(1) No instrument in writing affecting interests in real property, excepting instruments releasing liens on real property, shall be registered unless it contains a recital designating the deed, will, court decree or other source from which the grantor received the equitable interest.
Source Link - 10 Tenn. Code § 66-22-101(a)
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(a) Unless otherwise provided by law, to authenticate an instrument or document for registration or recording in the office of the county register… and the signature shall be either acknowledged according to law or proved by at least two (2) subscribing witnesses.
Source Link - 11 Tenn. Code § 66-22-101(c)(2)
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- I. Tenn. Code § 66-22-101(c)(2)
Appearing by means of an interactive two-way audio and video communication that meets the online notarization requirements under rules promulgated by the secretary of state pursuant to the Online Notary Public Act…
II. Online Notary Public Act
In April of 2018 the Tennessee Legislature passed Senate Bill 1758 known as the “Online Notary Public Act”. This Act is in effect as of July 1, 2019…
- I. Tenn. Code § 66-22-101(c)(2)
- 12 Tenn. Code § 67-4-409(1)(a)
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On all transfers of realty… there shall be paid for the privilege of having the same recorded a tax, for state purposes only, of thirty-seven cents (37¢) per one hundred dollars ($100)..
Source Link - 13 Tenn. Code § 67-4-409(b)(1)
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Mortgages, Deeds of Trust and Other Instruments. Prior to the public recordation of any instrument evidencing an indebtedness.. there shall be paid a tax, for state purposes only, of eleven and one-half cents (11.5¢) on each one hundred dollars ($100) of the indebtedness so evidenced.
Source Link - 14 TN Dept of Revenue: Taxes on Quitclaim Deeds
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- TN Dept of Revenue: Taxes on Quitclaim Deeds (Pg. 4)
A quitclaim deed contains no title covenants and offers no warranty as to the status of the property title. The tax base for a quitclaim deed is the consideration given… Examples of such language include, but are not limited to: “to have and to hold” (habendum clause) “in fee simple” (absolute)..
II. House Bill 2196 Amendment to T.C.A. § 67-4-409 (2022)
SECTION 1. In the case of quitclaim deeds, the tax must be based only on the actual consideration given for that conveyance..
- TN Dept of Revenue: Taxes on Quitclaim Deeds (Pg. 4)
- 15 Tenn. Code § 66-26-103
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Any instruments not so registered, or noted for registration, shall be null and void as to existing or subsequent creditors..
Source Link - 16 Tenn. Code Ann. § 28-3-109
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(a) The following actions shall be commenced within six (6) years after the cause of action accrued..
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