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.
Laws & Requirements
Statute: Per Ala. Code § 35-4-271, Alabama does not allow specific terminology, making it clear that words like “grant,” “bargain,” or “sell” create an implied warranty of title and cannot be used in a quit claim deed. Instead, “quit claim and convey,” “release and quit claim,” or similar language should be used. The deed must also include a statement of the grantor’s marital status.
Signing Requirements: Under Ala. Code § 35-4-20, the grantor’s signature must be attested by one witness, or where the grantor cannot sign their name, then attested by two witnesses. Acknowledging the signature by a notary public is also sufficient. Notarization is not mandated but recommended.
Recording Requirements: According to Ala. Code § 35-4-50, a quitclaim deed should be recorded with the County Probate Judge’s office where the property is located. Before filing, double-check the county-specific forms and filing fees.
Transfer Tax: Yes (exemptions may apply).
Additional Documents: Form RT-1, a Real Estate Sales Validation Form, must be filed with your quitclaim deed (Ala. Code § 40-22-1).
How to File
- Obtain Property Deed: Secure a copy of the original deed for essential information needed in your quitclaim deed.
- Locate Legal Description: Find the property’s legal description (address, parcel numbers, etc.) within the original deed for accurate completion of the form.
- Know Your Costs: Research state and local taxes to ensure you have the necessary funds for filing fees and potential taxes.
- Complete the Form: Fill out the form with details like the property description, grantor/grantee information, and tax details. Don’t forget the witness(es).
- File with County Probate Court: Submit your signed and witnessed quitclaim form, along with any taxes and fees, to the probate court in the property’s county.
Costs and Fees
Filing Fees:
- Recording fees (also called deed taxes): $.50 per every $500 of property value when filing the deed and related documentation.
Taxes:
- U.S. Gift Tax (Form 709): Federal tax applies to property transfers exceeding a yearly limit when no money is exchanged.
- Capital Gains Tax: Quitclaim deeds might incur state or federal taxes depending on the grantor’s income and the property’s value.
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.
