Quitclaim Deed Attorney – 6 Reasons to Hire One

An individual claiming ownership can claim a quitclaim deed, but this does not guarantee or state they own the property. While the grantor doesn’t have a right to claim an interest in the property, the document prevents them from doing so.Quitclaim deeds include the land’s legal description, the transferor’s name, and the notarized signatures of everyone involved. It is best to deal with a professional Quitclaim Deed Attorney for the drafting and execution of the quitclaim deed and the associated legal proceedings.

 

What is a Quitclaim Deed Lawyer?

An attorney specializing in quitclaim deeds helps people transfer property ownership to the owner. It is easier for one individual to transfer interest to another with the help of an attorney.

Whether you need to bequeath property in your will, transfer real estate, share properties with a business partner, or transfer property to a living trust, the quitclaim deed lawyer is the best option.

 

What Does a Quitclaim Deed Lawyer Do?

A quitclaim deed is an easy method of transferring real estate titles. A quitclaim deed lawyer’s responsibility is to ensure both parties consider all relevant issues so that undesirable outcomes do not occur. Lawyers who practice quitclaim deeds have the following responsibilities:

• Facilitate the transfer of property interest to a grantee through a legal agreement.
• Transfer a grantee’s interest in a property legally.
• Buying and selling real estate help.
• Ensure that the title to a property is free of liens or third-party interests.

Types of Quitclaim Deeds

There are different types of quitclaim deeds available in the United States today, and we’ve listed the most common ones below.

 

Sheriff’s Deed

A sheriff’s deed gives ownership of a property to a buyer after it has sold as a result of a foreclosure sale. If the original owner can no longer pay off the mortgage or home tax, it can help.

 

Tax Deed

An unpaid property tax deed gives the government control over the property. Taxes are collected when the owners can sell their property without restrictions.

 

Divorce Deed

Divorce deeds grant a spouse full rights and ownership over the property once the couple separates. Quitclaims also remove the other spouse from title to a specific property, transforming everything into sole ownership.

 

Why should I Hire a Quitclaim Deed Lawyer?

A quitclaim deed lawyer can help you with documentation and legal proceedings related to property transfer. A lawyer specializing in quitclaim deeds can help you with the following:

 

When a grantor wants to add someone as a grantee.

A quitclaim deed lawyer is the best option when a grantor wants to add someone as a grantee. Grantees can include family members, friends, spouses, etc. An attorney can also add a title to a house or property.

Add a Person’s Name for Refinancing Purposes

A person’s home may need to refinance in some cases. With a quitclaim deed, investors can refinance their high mortgages for real estate. As a result, professional attorneys can help in such situations.

 

Want to transfer any investment to a corporation or L.L.C.

Those who want to transfer any investment to a corporation or L.L.C. can consult with a lawyer specializing in quitclaim deeds. Attorneys can assist in transferring investments instantly to avoid any inconvenience.

 

A qualified attorney can handle the complicated and sensitive documents

A qualified attorney is the only person who can handle the complicated and sensitive documents involved in a quitclaim deed concerning a living trust. Documents created during a person’s life journey need zero errors or omissions.

 

Changing the title of a property from joint tenants to sole tenants

Changing the title of a property from joint tenants to sole tenants is possible with the help of a quitclaim deed attorney.

 

After Divorce or Separation, Transfer of Property

Spouses on the verge of divorce or separation must immediately transfer interests. When removing the other spouse from the property title, a quitclaim deed lawyer can help.

 

Consider the Factors Affecting Quitclaim Deed Transactions

When contemplating a quitclaim deed transaction, it is important to consider the following factors:

 

No Property Interest

In the case of a seller who does not hold an interest in a particular property, a quitclaim deed cannot transfer that interest. Purchasing now may put the purchaser at risk of not receiving a valid title to the property in return for the purchase.

Although this situation seems easy to avoid, it can be challenging to detect title issues. In June, Sand Co., the owner, executed a quitclaim deed transferring ownership of certain properties to a corporation. At 622, 23 So.2d.

After discovering the previous owner failed to pay property taxes, the corporation learned the State of Florida had seized the property. As a result of merely stepping into the owner’s shoes, the corporation received no interest in the property, according to the Florida Supreme Court. At 623, id.

 

Documentary Stamp Taxes

In Florida, documentary stamp taxes apply to documents transferring real estate interests. In most cases, the tax amount depends on the consideration paid for the property.

No consideration took place for the property, and the amount of the taxes fell on that mortgage balance. Since both parties are responsible for paying the tax, each party should independently determine whether the tax applies.

 

Capital Gains Tax

If a property owner sells his property and realizes profits from the sale, he must pay capital gains taxes—Commissioner v. Estate of Levine, 634 F.2d 12, 15 (2d Circ. 1980). Also, the I.R.S. can determine that a sale occurs when a mortgaged property is gifted and require the owner to pay capital gains taxes.

Considering the mortgage balance assumed by the recipient, the owner’s adjusted basis in the property differs from the tax amount in this scenario. According to this. I.R.S. penalties will apply if an owner does not report whether a sale occurred.

 

The Homestead Tax Exemption

In Florida, a homeowner may qualify for the homestead exemption if his property is his permanent home. Fla. Stat. § 196.031(1) (a). It may be possible to lower the property’s assessed value by $50,000 with this exemption. Id.

If Quitclaim deeds result in ownership changes, the exemption will be lost. Some transactions allow property owners to transfer their property without losing their exemption. Id. A current owner will retain the exemption if they claim it before and after a transaction. Id.

 

The Save Our Homes Cap

Each January 1, the property appraiser will reevaluate its value once it qualifies for a homestead exemption. Fla. Stat. § 193.155(1). According to the Save Our Homes Cap, any annual reassessment cannot exceed three percent of the previous year’s appraised value or the Consumer Price Index percentage change, whichever is lower. Id.

In the same way as the homestead exemption, the cap on the home will be lost if the owner changes. Florida’s ownership changes include sales, foreclosures, or legal or beneficial title transfers. Fla. Stat. § 193.155(3) (a).

It is generally not possible to lose the cap if the beneficial ownership of the business remains the same. Id. In this case, the owner will not lose the cap if the home passes to a revocable trust or spouse. Id. Unmarried joint owners who both own a homestead exemption will lose the cap if one of them dies. Id.

 

Gift Tax Consequences

In some cases, an owner may be able to transfer property for a fraction of its value by using a quitclaim deed. The I.R.S. requires the donor to report a gift over $15,000 that exceeds the annual exclusion amount. 26 U.S.C. § 2503(b) (2).

A donor who retains an interest in the property so that no taxes will be due. 26 U.S.C. § 2036. If the donor retains a property interest, the I.R.S. may consider it in calculating his gross estate. 26 U.S.C. § 2037.

 

Community Associations

Property owners often refrain from owning properties by the associations they govern [2]. For example, an association may need applicants to pass a background check and receive approval from the association before purchasing a property.

This restriction may prevent potential owners from consummating the transaction if they fail to comply.

 

What Is The Cost Of A Professional Attorney For Quitclaim Deeds?

It will cost around $300 to draft and record a quitclaim deed by a professional attorney. Recording fees and real estate transfer applications may incur additional charges. Also, quitclaim deeds can cost as much as $2500 at big law firms.

 

Key Terms Related to a Quitclaim Deed

Documents and proceedings in the legal system can be complex to navigate. If you want your lawyer to draft an efficient quitclaim deed, you must understand some key terms. A quitclaim deed has several key terms that you should be familiar with.

Bar Association: Lawyers’ association that promotes and enforces ethical standards.

Clear Title: Free from any claim or dispute, it describes the lawful ownership of real property.

Closing: Real estate transactions end with the closing. All insurance policies, documents, and financing documents will be signed and exchanged when closing.

Cooperative Housing: A cooperative housing group owns and operates common areas for residents.

Deed: A conveyance of real estate between two parties is a physical document.

Deed of Trust: In a few states, it is a document that pledges real estate in exchange for a loan.

Defective Title: The title to a property does not include the correct holder or contains inaccurate details that do not appear in the deed.

Easement: An easement permits a particular party to access or use a property in a particular manner.

Earnest Payment: This type of payment proves a buyer’s interest in acquiring the property during a real estate transaction.

Encroach: When you build something that creeps on the property of another. In such cases, the property survey may need to be more accurate.

Equitable Lien: It protects a property owner from unjust enrichment.

Escrow Agent: A person or company responsible for overseeing documents and funds related to real estate transfers.

Estate: An individual’s or group’s money and property.

 

Quitclaim Deed vs. Warranty Deed: What’s the Difference?

A quitclaim deed can facilitate property transfers among family members and resolve title disputes quickly, but it is less comprehensive than a warranty deed. The warranty deed is a property deed that usually follows a sale between one property owner and another. There are a couple of differences between them and quitclaim deeds:

Guarantee of ownership: Deeding or transferring ownership of a property may not be done by signing a quitclaim deed. Some grantors deed property that they don’t own (usually to clear up title errors). A warranty deed can, however, only give effect by the property owner.

Guaranteed title clearance: Guaranteed title clearance refers to a property’s clear title. An independent title company prepares this report to confirm that the property is free of property tax liens, legal claims from previous owners (such as a seller’s ex-spouse), and other encumbrances.

It will guarantee the entire history of the property’s ownership. This type of deed is known as a special warranty deed (or grant deed).

The notary public should stamp quitclaims and warranty deeds and file them with the county, city, or county clerk. Such transactions are subject to transfer taxes in some municipalities.

 

Advantages of Quitclaim Deeds

Grantors and grantees alike find quitclaim deeds appealing for several reasons.

1. Simplicity: Quitclaim deeds are typically short and straightforward. A legal or real estate website can provide a template for such a deed. Only deed property after seeking legal advice first.
2. Good for internal transfers: Quitclaim deeds make it easy to transfer property ownership among family members or between individuals and trusts.
3. Legally binding: Quitclaim deeds serve as legal proof of ownership during title searches despite their simplicity.

 

Conclusion

Quitclaim deeds are essential for transferring ownership of property between individuals. There is no need for a real estate agent in this process, which is the best part of it.

There are, however, several factors to consider when designing a contract, including what should include and how the transaction should be structured and interpreted. Such legal proceedings need the help of a Quitclaim Deed Attorney. The website allows you to post projects with your requirements and connect with lawyers specializing in quitclaim deeds.