Quitclaim Deeds Florida
I. What is a quitclaim deed?
The most common way to transfer real property from one owner to another is by recording a document called a deed. There are different types of deeds depending on the covenants of title they contain. Some common types of deeds are warranty deeds, special warranty deeds, and quitclaim deeds. This article focuses on quitclaim deeds.
A quitclaim deed contains no covenants of title. The person who gives the quitclaim deed (aka the grantor) is essentially saying “Whatever I had in this property, you now have. Whatever defects exist on title like judgements, mortgages, code enforcement liens that have attached to the property, you now have. I quit!”
This differs from a typical sale, where the seller will transfer the property with a “warranty deed.” The “warranty” is the seller’s assurance that the buyer has clear title to the property and all covenants of title are contained in the deed. In contrast to a warranty deed, a quitclaim comes with no covenants of title.
II. When would a quitclaim deed be useful?
Quitclaim deeds are commonly used when property is transferred outside of a sale. These situations could include:
Divorce. As part of many martial settlement agreements, the divorcing couple agrees to split their real estate assets. One spouse may continue to live in the property and the other spouse may leave. The spouse that is “quitting” the property may need to sign a quitclaim deed in order to comply with the marital settlement agreement.
Marriage. If a spouse acquired real property prior to the marriage, the other spouse may not appear on title. By quitclaiming the property to themselves and their spouse, the real property becomes property of the married couple. If one spouse predeceases the other, and a quitclaim was recorded, then full title to the real property would automatically pass to the surviving spouse and no probate estate would need to be filed.
Non-married partnership. There are many people in committed, long term relationships to each other. However, these people, for a number of reasons, may choose not to marry one another. Florida does not recognize common law marriage and does not recognize domestic partnerships at the state level. In order to afford marriage-like protections, one partner may quitclaim their interest in real property to themselves and their partner as joint tenants with rights of survivorship. This will ensure that when one partner passes, the other will be the owner of the real property.
Business transfer. A landlord may have acquired real property under their personal name. They may decide to quitclaim the real property into a business entity, like an LLC, in order to rent the real property and take advantage of the protections of the corporate entity.
Family relationship. An owner may wish to gift an interest in real property to another family member.
Boundary dispute between neighbors. Two property owners might wish to transfer a portion of a lot to their neighbor. For example, there may be a sliver of property on one side of a fence that one neighbor wishes to transfer to the next-door-neighbor.
Smaller transactions or vacant land. Some transactions are small and the buyers may be comfortable with forgoing the cost of a title report and title insurance. A good example would be vacant land that cannot be built on and is used only for recreational purposes. In such an instance, the buyer needs to be aware of the potential risks of not performing a title search and risk of a foreclosure on the real property.
III. Do I need a lawyer to prepare a quitclaim deed?
No. A property owner may prepare and record their own quit-claim deed without the assistance of an attorney. The Brevard County Clerk of Court has a form on their website, linked here, which may be used. The Clerk of Court will not review the deed with the property owner to ensure the legal description is correct and will not consult with the property owner about the goal of quitclaim deed. Once prepared, it will be the owner’s responsibility to record the quitclaim. The Clerk of Court will only review the quitclaim deed to ensure that it was notarized and witnessed properly and then record the quitclaim deed.
If the property owner made errors in the wording of the quitclaim deed, then the deed may not achieve the property owner’s goal. If the quitclaim contains an error (such as an incorrect legal description) and grantor dies or cannot otherwise be found when the new owner tries to sell or convey the property, the new property owner may be unable to easily sell the property and need the services of real estate attorney.
Finally, documentary stamp taxes need to be paid on the transfer. If the grantor fails to pay these taxes, they could incur a penalty (such as a lien).
IV. What will an attorney do when a quitclaim is prepared?
If a property owner uses an attorney, the attorney will consult with the property owner about their goals for the quitclaim. Is the current owner interested in adding someone to title, and if so, what stake will the new joint owner have? Is the property owner gifting land to a child? After consulting with the property owner, the attorney will prepare the quitclaim deed to ensure that the owner’s objectives are realized and that the legal description it accurate.
Next, an attorney can determine whether the transfer is exempt from documentary stamp taxes. In such a circumstance, the attorney will include the proper language in the quitclaim deed that explains why the deed is exempt from documentary stamp taxes.
Subsequently, deeds need to be properly signed, witnessed, and notarized to ensure that they are effectual. An attorney will coordinate the signing of the deed and ensure that it is properly witnessed and notarized.
Finally, a deed is only effective once it is recorded in the official records of the county where the property is located. Once the deed is executed, the attorney will record the deed for the property owner. This recordation allows the tax collector and any other interested parties to know who is new owner of the real property.
V. How much do you charge for a quitclaim deed?
Mangrove Title & Legal, PLLC prepares quitclaim deeds for real estate owners for a reasonable flat fee. Please feel free to call our office to discuss your needs. Generally, we can prepare, sign, and record your quitclaim deed within a week.