Quitclaim Deed California

California Quitclaim Deeds

In contrast to a warranty deed, a quitclaim deed does not guarantee the grantor owns the property. Grantors can only transfer what they own, so if they own half, they can only transfer half of the property.

Anyone can give a quitclaim deed to someone. But if the grantor does not own the property, the deed is meaningless. You cannot sue the grantor for damages, so a quitclaim deed is risky for a grantee.

It is generally a case of transferring the property to a living trust, transferring it to the parent’s child. Or transferring it to the grandparent’s spouse in a divorce. In addition to transferring property to an LLC, a quitclaim deed can also assist.

With a quitclaim deed, the grantee should be in absolute trust with the grantor. Getting the California quitclaim deed form from the county where the property lies is essential, as forms differ from county to county with grant deeds. If not, the grantee should not accept a quitclaim deed.

 

Warranty of Title: What is it?

During signing some types of deeds, the transferor provides the transferee with a warranty of title. Which guarantees the title of a property is free from issues. When a transferor provides a warranty of title, they agree to be legally liable for any title problems that may arise. When a title problem arises, the transferee may sue the transferor.

Property values may drop in case of title problems, or selling a property may be difficult, requiring legal action. The warranty of title protects the transferee against financial loss resulting from title problems.

 

Using California Quitclaim Deeds, How Does Warranty Of Title Work?

Since there is no warranty of title, quitclaim deeds have a defining characteristic. Quitclaim deeds provide no legal basis for the transferee to hold the transferor responsible for title issues. Essentially, a quitclaim deed is an “as-is” transfer. Regardless of whether the transferor has an interest, the transferor gets what they hold.

 

Quitclaim Deeds – When to Use Them

It is most common to use quitclaim deeds for real estate transfers without a traditional sale. Quitclaim deeds rarely occur for real estate sales due to the unfamiliarity of the new owner with the title.

A quitclaim deed is appropriate in these situations:

• Individuals transfer their share of a property they inherited with their siblings into their living trust.
• Families transferring property to each other, such as parents transferring a house to their children.
• Transferring a property in one spouse’s name to the new spouse’s name.
• When one spouse keeps a property after a divorce, the ex-spouse’s name disappears.
• Providing property title clearance when someone else may have an ownership interest but is willing to release it.

 

What Is The Procedure For Filing A Quitclaim Deed In California?

It is relatively easy in California to quitclaim a property unless there are tax exemptions, a subject we will not cover. First of all, you need to make sure the quitclaim deed is appropriately filled out and notarized.

Obtain the Preliminary Change of Ownership Report from the county where the property lies and file the Documentary of Transfer Tax or Notice of Exempt Transaction with the County Recorder. A county clerk, recorder, or assessor can provide the necessary forms.

 

Creating a Quitclaim Deed

Consult a lawyer if you think you might benefit from a quitclaim deed. As part of the transfer of ownership, the grantor transfers ownership of the real property to the grantee. You should sign the deed before a notary public.

 

 

Changing Ownership Preliminary Report

It would help if you had your attorney prepare a PCOR when drafting your trust transfer deed in California. The PCOR must be signed and filed with the county recorder with your trust transfer deed.

Upon the transfer, the PCOR notifies the county assessor’s office that although there has been a transfer, no sale has occurred. Hence, even if your property value has increased. You are not required to reassess your property taxes.

 

Keeping a record of your actions

It would help if you went to the county recorder where your property resides to record your deed. Sacramento County usually takes 4-6 weeks to record a deed. At the same time, it may take several months in other California counties.

Following the recording of the deed, either the homeowner or the lawyer who prepared the document received the original deed in the mail.

 

Quitclaim Deed Forms in California: Common Uses

Quitclaim deeds typically occur in low-risk situations involving nominal consideration. Quitclaim deeds serve as legal titles or transfer of control without actually changing ownership.

Transferring property often requires the use of a quitclaim deed in California:

• As a gift to your spouse or another member of your family;
• Upon divorce, removing an ex-spouse from the title of a property;
• Changing marital property (for example, turning separate property into community property);
• The current owner’s living trust or business;
• Co-owning the property with a new owner (adding a new owner to the deed);6
• Removing someone from the deed if they no longer wish to hold title; or
• The transferor must sign a quitclaim deed to eliminate any cloud on the title.

 

Requirements for California Quitclaim Deeds

No California statute governs quitclaim deeds. Still, they have their roots in the common law, and it is mandatory to include the right granting language to avoid any implied warranty of title.

In a quitclaim deed, the transferor must not imply that the title is guaranteed or warranted. California quitclaim deeds, for example, provide implied warranties when they use the word grant(s) to describe the transfer. As an alternative to grant or convey, California quitclaim deeds typically say that the current owner quitclaims their interest. A quitclaim document need not include a clause that expressly excludes any warranty. But a disclaimer helps avoid ambiguity.

 

How Much Does A California Quitclaim Deed Cost?

California is no different from other states because a quitclaim deed costs a lot to file. There was a $15 base fee in Los Angeles County in 2018 and additional fees of $87 per page for every additional page. The costs are reasonable compared to other states’ fees.

 

Tax Implications of a Quitclaim Deed in California

It is essential to pay all back taxes before the grantee receives the property under a quitclaim deed, just as with other deeds. It is necessary to file a United States Gift (and Generation-Skipping Transfer) Return (Form 709) if no money changes hands between the grantor and the grantee.

Transferring the deed to another spouse or placing the deed in a trust, there is no gift tax. If the transfer is due to the grantor’s death, there is an exemption from documentary tax.

To qualify for an exemption for real property transfer taxes, they must appear on the quitclaim deed. It is a good idea to consult with your tax adviser before you transfer real estate. Otherwise, you might have to pay taxes on capital gains later. It is also possible to miss some exemptions.

 

Mortgage Effects of a Quitclaim Deed

The issue of whether or not a quitclaim deed removes the grantor’s name from a mortgage is a common one. You are still responsible for paying your mortgage when you transfer your property by quitclaim deed to someone else if you have a mortgage.

To resolve this issue, the grantor and grantee must work together. Grantees can take on mortgages or refinance their homes. A grantor still pays for a mortgage debt if they are the grantor.

 

California Quitclaim Deed Form Other Names

There is also a quitclaim deed, also known as a quitclaim deed. If Abe quitclaims a property to Ben, the term quitclaim applies because both terms are interchangeable. People mistakenly refer to a quitclaim deed as a quick claim deed. That is incorrect. A quick claim deed does not exist.

In California, quitclaim deeds are legal and common. In many states, including Texas, title insurers discourage quitclaim deeds. Deeds without warranties often substitute for quitclaim deeds in those other states. As title insurance companies in California accept quitclaim deeds, California doesn’t have a form for deeds without warranties.

 

Do California Quitclaim Deeds Differ From Other Forms Of Deeds?

California quitclaim deeds transfer property without warranties, putting the new owner at risk of title problems. If the transferor does not have any interest, the transferee takes nothing. If the property title has problems, the transferee cannot sue for breach of warranty since a quitclaim deed does not provide that warranty.

Quitclaim deeds lack warranties, differentiating them from grant deeds and warranty deeds.

 

Quitclaim Deeds in California and Title Insurance

It is the transferee’s responsibility to keep the property’s title free of defects, and it is possible to limit exposure to financial risk by securing title insurance coverage for the property.

The insurance company charges an upfront premium for title insurance and, in return, agrees to cover any financial losses incurred by a title problem. In addition to arranging title examinations before issuing policies, title insurers also conduct title examinations before issuing. A title exam dramatically increases the probability that title problems arise before closing.

 

Planning Your Estate with California Quitclaim Deeds

Due to their title warranty, different types of California deeds are not considered quitclaim deeds.

Two types of deeds are famous for California estate planning. Life estate deeds and transfer-on-death deeds. There are two types of California deeds: LIFE estate deeds and TOD deeds, which allow California real estate to avoid probate and reduce costs and complexity associated with estate administration.

In contrast to a California TOD deed, a life estate deed is not revocable and does not limit the owner’s rights to the property while the owner is still alive. After recording a TOD deed, the owner can continue to sell or mortgage the property. However, the rest beneficiary, who takes ownership when the owner dies, must consent to the transfer before it can take place.

Deeds for California estate planning and quitclaim purposes go by different names based on their characteristics. For instance, a California life estate deed can also be called a California quitclaim deed.

 

How to Sign a Quitclaim Deed in a Divorce

When dividing property in a divorce, a quitclaim deed is the fastest way to transfer interests between spouses. Any liens or debts on the property may be transferred from the grantor to the grantee as long as the grantor signs over their interest in the property. An experienced divorce attorney in California can help you decide whether to transfer any property interests.

 

Is It Better To File A Quitclaim Deed Or Take A Partition Action?

When a co-owner refuses to transfer their interest in a property, problems can occur quickly. Quitclaim deeds are voluntary transfers of a current interest in a property. A partition action can resolve your co-ownership dispute if a co-owner refuses to sign over their interest in the property and finally ends an unsuitable co-ownership relationship.

It requires a court order to force the sale of jointly owned real property. Ensuring that all owners receive their equitable interest. An attorney with partition action experience can talk about the advantages and disadvantages of filing a partition lawsuit instead of signing a quitclaim deed by an attorney in real estate litigation who has had experience with partition actions.

 

Real Estate Litigation Attorneys

Real estate purchasers and sellers may encounter issues if quitclaim deeds lack proper execution. You may be able to receive assistance from the real estate litigation attorneys or partition attorneys at Attorney Real Estate Group if a quitclaim deed has caused you complicated legal problems or if you are interested in pursuing a partition action against your co-owner.