How Do You File a Quitclaim Deed?

A Quitclaim Deed is often used to transfer the title of a property to someone else and is considered a DIY (do-it-yourself) approach. It is called a quitclaim because the person transferring property quits their claim to the deed.

While someone can fill out and file a Quitclaim Deed on their own, there are several reasons to reconsider that route. We’ll discuss what those reasons are and how to go about filing a Quitclaim Deed.

What Is a Quitclaim Deed?

A Quitclaim Deed is usually a one-pager that requires the names and addresses of the grantor (i.e., the person transferring title) and the grantee (i.e., the recipient). Once the deed is filed and assuming it is correct, the title is transferred.

Common uses of Quitclaim Deeds are:

• Transfer/change the name of rental properties to an LLC. 
• It is used in divorce settlements where one former spouse transfers property to the other former spouse. 
• Changing the name of the title to a trust.

They are also used to easily transfer property between family members.

There are cases where a Quitclaim Deed may not be the best option. If property is being transferred to an unrelated person, a warranty deed or other approach is probably better since it requires that the title is clear and provides warranties.

It’s important to find out if there are any liens on the property being transferred. The Quitclaim Deed makes no warranty that the title is clear and puts that responsibility onto the grantor and grantee.

Beware that the new owner may lose title insurance when changing the name on the deed.

Title and escrow companies can verify the title insurance status and what may happen to it before transferring.

If you have a mortgage on the property being transferred, there may be mortgage-related expense deductions and other tax implications. Depending on the transfer, the mortgage will go with the property and become the responsibility of the transferee.

A grantor cannot transfer more property than they own. Otherwise, the transfer will legally fail. For example, if a grantor tries to transfer real estate in which they do not have clear title, the transfer will fail. Legal and clear title to the property is required for the transfer to succeed. 

Filling Out a Quitclaim Deed Form

A Quitclaim Deed form can be obtained from your attorney, realtor, and even office supply stores. They are usually one-page forms.

The form requires the names and addresses of the grantor and grantee. The 

correct property tax parcel/account number may be required. This information can be found on the deed or county account assessor's webpage. Once the form has been filled out, the grantor must sign the document and have it notarized.

If married, the spouse will often need to sign the form as well. As the old saying goes, it takes one to buy and two to sell. The grantee may not need to sign the document.

The legal description of the property must also be included in the document. The description must be correct and exact.

Once the form has been filled out and notarized, it can be recorded at the county recorder’s office. There will be a fee involved. Also, send a copy of the completed and notarized form to the new owner with a return receipt.

Filing the form does not mean the recorder has checked its authenticity. There’s the potential for liens or other issues on the property. Fixing errors on a QuitClaim Deed after it has been filed can be costly. While many might call a Quitclaim Deed a DIY approach, it’s best to work with an attorney when filling out the form. Otherwise, the litigation cost to fix the deed can be far more expensive.

A Quitclaim Deed can be a simple, fast, and cheap method for transferring title. However, in the end, it can be very costly if errors are found. Using an attorney when filing out the Quitclaim Deed isn’t cheap, but it can be far cheaper than any potential litigation that may follow due to errors or authenticity issues.