An Arkansas quitclaim deed allows someone who owns a property (grantor) to transfer ownership of that property to someone else (grantee). The property transfer comes with no promises or guarantees about the property’s title or the grantor’s right to sell the property.
If the grantor and grantee want a guarantee on the title, they need to use a warranty deed instead of a quitclaim deed.
Laws & Requirements
Statute: Ark. Code § 18-12-209.
Signing Requirements: Ark. Code § 18-12-203: Arkansas quitclaim deeds require the grantor to sign in front of a notary public.
Recording Requirements: Ark. Code § 14-15-404: All quitclaim deeds in the state must be submitted to the office of the County Recorder Circuit Clerk for filing. The office will charge a recording or filing fee. Choose the Circuit Clerk that oversees the county where the property is located.
Transfer Tax: Yes. $3.30 per $1,000 of actual consideration on transactions that exceed $100 (Dept. of Finance and Administration). This Real Property Transfer Tax must be paid when submitting the quitclaim deed.
Additional Documents: A signed and notarized deed and a Real Property Tax Affidavit of Compliance Form as provided by the Department of Finance and Administration.
How to File
- Locate the Title: Before transferring ownership, you’ll need details about the property’s title. Obtain the original title from the current owner or request a copy from the county circuit clerk’s office.
- Complete the Quitclaim Deed: Fill out the form with information like grantor/grantee names, property description, and transfer tax amount. Ensure the format complies with Ark. Code § 14-15-402.
- File the Tax Affidavit: Complete a tax assessment affidavit (Ark. Code § 26-60-107) stating the included transfer tax or explaining your exemption. The grantee needs to sign this form.
- Sign and Notarize the Deed: The grantor (and spouse, if applicable) must sign the deed before a notary.
- Submit Everything to the County: File the completed quitclaim deed, tax/fee payments, and tax affidavit with the circuit clerk in the county where the property is located (Ark. Code § 14-15-404).
Costs and Fees
Recording Fees:
- In order to finalize a quitclaim deed transferring property, you need to file it with the county recorder’s office in the county where the land is located. The recording fee associated with this is $15 for the first page and $5 for each additional page, according to Ark. Code § 21-6-306.
Taxes:
- Transfer Tax: Most real estate transfers, including those done with a quitclaim deed, incur a transfer tax of $3.30 per $1,000 of value (unless exempt), split between buyer and seller.
- U.S. Gift Tax (Form 709): Gift tax liabilities for property transfers above a certain value must be reported via Form 709 with annual income taxes, though exceptions include gifts below the annual exclusion, transfers to spouses or political organizations, and payments for tuition or medical expenses. Charity gifts via quitclaim deeds may offset owed gift taxes through deductions.
- Capital Gains Tax: If you report capital gains on your federal return, you’ll likely owe state capital gains tax in Arkansas, though the amounts may differ due to federal exceptions and limitations. Thus, even if no federal tax is owed, Arkansas state capital gains tax might still apply.
Frequently Asked Questions
What is the difference between a warranty deed and a quit claim deed in Arkansas?
In Arkansas, choosing between a warranty deed and a quitclaim deed depends on how much assurance you want about the property title. A warranty deed offers strong protection for the buyer. The seller guarantees they have a clear title and the right to sell. Warranty deeds are typically used in standard real estate purchases with financing involved.
On the other hand, for a quitclaim deed, the seller simply transfers whatever ownership interest they have without any guarantees about the title’s cleanliness. The buyer assumes all risks. Quitclaim deeds are better suited for situations where trust is high, like transferring property between family members or as part of a gift.
How do I remove someone from my deed in Arkansas?
In Arkansas, removing someone from your property deed requires their cooperation unless they’ve passed away. If they’re agreeable, you both sign a quitclaim deed stating they relinquish their ownership to you. This deed is then recorded with the county recorder’s office (filing fees apply).
However, if the co-owner is unwilling to sign, removing them becomes a legal matter. You’ll need a court order, and it’s strongly advised to involve a real estate attorney to navigate this complex process.
How long is a quitclaim deed good for in Arkansas?
A quitclaim deed itself doesn’t have an expiration date in Arkansas. Once recorded with the county recorder’s office, it becomes part of the public record and transfers ownership interest.
However, there’s a two-year window after recording where the validity of the deed can be challenged. This means either the grantor (giver) or grantee (receiver) can potentially contest the deed’s legitimacy during this period. If no challenges arise within those two years, the quitclaim deed becomes a permanent record of ownership transfer.
