An Alabama quitclaim deed is a document that a real estate owner (the grantor) can use to pass their property ownership to another person (the grantee) without a title search. The form does not give the grantee any promise or warranty about the grantor’s property ownership.
How to File
Filing a quitclaim deed in Alabama involves several steps to ensure the transfer is legally recognized. Follow the process below to complete and record your deed properly.
Step 1: Secure a Copy of the Property Deed
Obtain the original deed to the property before you begin the quitclaim process. The deed contains critical information you need to file your quitclaim deed.
If you do not own the property, request a copy from the current owner or purchase one from your county’s Probate Court records department.
Step 2: Look for the Property’s Legal Description
Find the legal description of the property on the original deed. This description may include the address, parcel numbers, lots, or metes and bounds.
You will need this information to complete the quitclaim form.
Step 3: Determine the Recordation Taxes and Filing Fees
All property transfers are taxed per Ala. Code § 40-22-1 to § 40-22-12.
Review your state and local tax requirements to ensure your filing fees, taxes, and other financial obligations are covered.
Step 4: Complete the Quitclaim Form
Enter the required details, including the property’s legal description, grantor and grantee details, and tax information.
As state law requires, sign the document in the presence of at least one witness.
Step 5: File the Document With Your County Probate Court
Your quitclaim form must be filed with the probate court in the property’s county. You can look up the correct location through the Alabama Secretary of State website. Submit the signed and witnessed quitclaim form, real estate sales validation, and any taxes and fees.
Some counties have different formatting and documentation requirements, so check with your local probate office before you file.
Costs and Fees
When filing a quitclaim deed in Alabama, you’ll need to account for both county recording fees and potential state or federal taxes. Below is a breakdown of the key costs you may encounter.
Filing Fees
A quitclaim filing in Alabama is subject to a recording fee, also called a deed tax. The county will assess $.50 per every $500 of property value when you file your quitclaim deed and associated documentation.
Taxes
Quitclaim deeds may also be subject to the following taxes:
1. U.S. Gift Tax (Form 709)
Alabama has no gift tax, but the federal government enforces one (Form 709) when the property is given without monetary exchange.
This tax only applies when the value of the gift exceeds a certain limit. Since this value changes annually, you should review federal gift tax requirements when tax season comes.
2. Capital Gains Tax
Depending on your income, filing status, and property value, you may pay a state or federal tax on Alabama quitclaim deeds. Tax rates can vary, so you benefit from reviewing tax laws or consulting with a tax professional before you file.
Since capital gains are taxed as income, you file these taxes when you report your annual income tax return.
Alabama Quitclaim Deed Requirements
Quitclaim deeds in Alabama must follow specific legal and formatting rules to be valid. Below are the key requirements set by state law.
Legal Framework
Ala. Code § 35-4-1 grants property owners over 19 years of age the right to convey property to other individuals immediately or in the future by writing or through a will, as long as the conveyance is consistent with state laws.
Additionally, a valid Alabama quitclaim deed must meet the following requirements:
Legal Description
Any deed conveying property must include a legal description of it consistent with Ala. Code § 40-7-16. Most grantors use the existing property title. This may include the following:
- Numbered section, township, and range.
- Subdivision designation.
- Metes, bounds, and acreage.
- Plat, lot, or block number.
The primary goal of the legal description is to clearly locate and identify the property and establish its size and quantity.
Signing
- Ala. Code § 35-4-20 requires quitclaim deeds and other documents that convey property to be written or printed wholly or partially on paper or parchment. A quitclaim deed must be signed by the grantor, who is the person conveying the property, and at least one witness.
- The state signing requirements provide for individuals incapable of signing their own names. If the contracting party has a representative sign for them, the agreement must be witnessed and signed by two individuals capable of signing their own names.
Terminology
State law prohibits language that implies warranty of ownership or title, such as “grant,” “bargain,” or “sell” (Ala. Code § 35-4-271).
Marital Status
Per Ala. Code § 35-4-73, the grantor or vendor conveying the property must indicate the grantor’s marital status. This is because Ala. Code § 6-10-3 prevents a person from conveying property without the voluntary assent of the grantor’s husband or wife if the property is an owner-occupied homestead dwelling.
Additional Documents
The deed must be accompanied by a Real Estate Sales Validation Form, which verifies the transferred property’s actual purchase price or value (Ala. Code § 40-22-1).
Filing
- Property conveyance must be recorded with the office of the probate judge in the county where the property exists (Ala. Code § 35-4-50).
- Recording the deed in the appropriate county probate office serves as effective notice of the conveyance (Ala. Code § 35-4-63).
Validity Requirements
To ensure validity, Alabama quitclaim deeds should include the following details:
- Filing location: The deed must be filed in the county where the property is located.
- Written or printed: The document must be written or printed on paper or parchment.
- Required signatures: The deed must be signed by the grantor and one witness if the grantor can sign for themselves. If the grantor cannot sign for themselves, the deed must be signed on their behalf by an authorized representative and two witnesses.
- Spouse approval: If the property is co-owned by a married couple, both spouses must sign. If only one spouse owns the property, they can be the only signing grantor, but only if the property is not a designated homestead.
Content Requirements
A quitclaim deed in Alabama must follow certain content guidelines to be valid:
- Legal description: The deed must include a legal description of the property, which can usually be found on the property title.
- Grantor details: The grantor’s full name, address, and marital status must be included.
- Grantee information: Add the grantee’s name, address, and property transfer details.
- Homestead requirements: If the property is a designated homestead, the quitclaim deed must be signed by both spouses.
- Non-homestead statement: If the property is not a designated homestead, the grantor must include a formal statement to that effect.
- Language: Avoid terms that imply warranty and ownership. Use terms like remise, release, and quit claim or quit claim and convey instead.
Quitclaim Deeds vs. Other Property Transfer Methods in Alabama
| Quitclaim Deed | Conveys property without guarantees about the title. If the grantor does not own the property, the grantee does not have any rights to the property The grantee has no grounds to sue for title issues, because the deed provides no warranty. |
| General Warranty Deed | Provides a full warranty of title and guarantees that the property tile is free and clear of any encumbrances. This type of deed carries the highest level of liability for the person conveying the property. |
| Special Warranty Deed | Offers a partial warranty of title. The grantor is responsible only for property issues that arose during the grantor’s ownership term. It absolves the grantor of any responsibility for title issues that may have occurred before they took ownership. |
| Title Insurance | Allows grantees who receive property from an Alabama quitclaim to reduce their financial liability. For a premium, title insurance protects the buyer from title fraud, forgery, liens, document errors, and other title problems that may arise. |
| Life Estate Deed | Helps the property owner avoid probate and joint tenancy costs. The grantor retains the right to live as a life tenant in their home while they are alive. Upon the life tenant’s death, the grantee, called the remainderman, becomes the sole property owner. |
| Survivorship Deed | Property owners can also avoid probate by having multiple owners on the title. Similar to a life estate deed, this document automatically transfers ownership of the property to the co-owner upon the other owner’s death. |
Sample Alabama Quitclaim Deed
Below, you can view a sample Alabama quitclaim deed. You can customize this template using our document editor and then download in PDF or Word format.
Frequently Asked Questions
Can I use a quitclaim deed to add someone to the property deed in Alabama?
Yes, a quitclaim deed can be used to add someone to the property deed. This is a common scenario for situations like adding a spouse or child as a co-owner. However, it’s important to understand the limitations.
While adding someone through a quitclaim deed is simple, it doesn’t guarantee a clear title. This means any existing ownership issues would also be transferred to the new co-owner. For this reason, it’s best to use a quitclaim deed for adding someone you trust completely and when you’re confident about the property’s title history.
How long is a quitclaim deed good for in Alabama?
A quitclaim deed itself doesn’t have an expiration date in Alabama. Once filed and recorded by the county, it becomes part of the official property record and permanently reflects the ownership transfer.
However, there is a concept called a “statute of limitations” that applies to challenging the validity of a quitclaim deed. In Alabama, it’s generally two years from the date the deed is recorded. After two years, contesting the transfer of ownership through the quitclaim deed becomes much more challenging.
Do I need a quitclaim deed in a divorce?
A quitclaim deed can be helpful in finalizing property division during an Alabama divorce, but it’s not always mandatory. If your court order explicitly states using a quitclaim deed to transfer property ownership from one spouse to the other, then you’ll need to follow those instructions.
However, in other situations, the court may utilize alternative legal documents within the final settlement to transfer ownership, eliminating the need for a separate quitclaim deed.
