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.
How to File
Filing a quitclaim deed in Arkansas involves gathering key documents, meeting legal requirements, and recording the deed with the correct county office. Taking the right steps ensures your property transfer is completed properly and without delays.
Step 1: Obtain the Original Property Title
While a quitclaim deed absolves the grantor of all liability related to the title and ownership, you still need details on the title to transfer the property.
If you are not already in possession of the title, you can request a copy from the current owner or contact the circuit clerk’s office in the county where the property is located.
Step 2: Fill Out the Quitclaim Deed Form
Enter the grantor and grantee names, return address, legal property description, consideration, and transfer tax. Ensure your form meets formatting and content requirements per Ark. Code § 14-15-402.
Step 3: Complete the Tax Assessment Affidavit of Compliance
Complete a tax assessment affidavit, per Ark. Code § 26-60-107. This form should indicate that you included the correct transfer tax amount with the quitclaim deed or that you qualify for an exemption. This form must be signed by the grantee.
Step 4: Sign the Form With a Notary
If applicable, the grantor and their spouse must sign the quitclaim deed before a notary, per Ark. Code § 18-12-203.
In accordance with Ark. Code § 18-12-403, the grantor’s spouse must also sign the quitclaim deed or an acknowledgment if they co-own the property.
Step 5: Submit the Forms and Appropriate Payments
Submit your Arkansas quitclaim deed, payment for taxes and fees, and tax assessment affidavit to the circuit clerk in the county where the property is located, per Ark. Code § 14-15-404.
Costs and Fees
Understanding the recording fees and potential taxes tied to an Arkansas quitclaim deed can help you plan ahead and avoid costly surprises during your property transfer.
Recording Fees
A quitclaim deed must be submitted to the county recorder’s office in the county where the property is located. Per Ark. Code § 21-6-306, the recording fees for a quitclaim deed are $15 for the first one-sided page and $5 for each additional page.
Taxes
Taxes you may owe for transferring real estate via a quitclaim deed in Arkansas include transfer tax, federal gift tax, and capital gains tax.
1. Transfer Tax
Transfer tax applies to most real estate transfers in the state of Arkansas that involve consideration over $100. This includes quitclaim deeds. Per Ark. Code § 26-60-106, the responsibility for paying transfer tax is divided equally between the grantor and grantee unless the parties agree otherwise. You should pay the transfer tax when you convey the property to the new owner.
Not all real estate transfers are subject to transfer tax. Arkansas allows exemptions to real property transfer tax under the following circumstances:
- When the grantor or grantee is part of the government of the United States or the state of Arkansas.
- When the deed is only to secure a debt.
- When the deed transfers land sold for delinquent taxes.
- When the deed conveys land-only leasehold interest.
- When the deed grants timber removal rights for 24 months or less.
- When the quitclaim deed is part of a divorce action.
- When the quitclaim deed is to enforce a security interest.
- When the quitclaim deed conveys a home financed by the Federal Housing Administration, United States Department of Veterans Affairs, or United States Department of Agriculture Rural Development, as long as the sale price is $60,000 or less and the buyer or their spouse has not owned a home within the past three years.
- When the quitclaim deed conveys land between business entities, shareholders, or partners.
- When the consideration for the property is $100 or less.
Other exceptions may apply. If you are unsure of the property tax amount, contact your local circuit court clerk or a real estate attorney in your area. Failure to pay appropriate taxes can void your Arkansas quitclaim deed.
Ark. Code § 26-60-105 outlines the tax rates for real estate property transfers in Arkansas. For land transfers with consideration over $100, the state assesses a transfer tax of $3.30 for every $1,000 or fraction thereof.
2. U.S. Gift Tax (Form 709)
The federal government requires people to pay taxes on gifts over a certain amount. If the grantor gifts property greater than a particular value without full consideration, they may be liable to pay gift tax. To pay gift tax on a property you conveyed, file Form 709 with your annual income tax return. Exceptions to US gift tax include:
- Gifts worth less than the annual exclusion, as designated each year by the Internal Revenue Service (IRS).
- Gifts to your spouse.
- Gifts to a political organization.
- Tuition or medical expenses.
Charity gifts are also deductible, so if you used a quitclaim deed to transfer property to a qualifying charitable organization, you may be able to use the credit to offset the gift tax you owe.
3. Capital Gains Tax
Arkansas and the federal government charge taxes on capital gains. Capital gains tax applies to real estate in Arkansas when the seller makes a profit from the property sale. The tax percentage varies depending on the following:
- How long you owned the home before you sold it.
- How much you profited from the sale.
- Your annual household income.
- Whether you lived in the home for at least two out of the past five years.
If you report a capital gain on your federal income tax return, you will probably also owe state capital gains tax in Arkansas. However, the amount you owe may be different. The federal government also has different exceptions and limitations. That means you may still owe Arkansas state capital gains tax even if you do not owe the federal government.
Arkansas Quitclaim Deed Requirements
Arkansas law sets clear rules for quitclaim deeds to ensure property transfers are valid and properly recorded. Including the right language and meeting legal standards helps avoid issues with ownership down the road.
Legal Framework
Arkansas quitclaim deed laws span codes for property, taxes, and legal document requirements. Ark. Code § 18-12-102 establishes the basic legal framework under which a property owner can transfer real property using a deed.
The law includes quitclaim deeds, but the grantor must use language that specifically limits the warranty and liability.
Legal Description
Your Arkansas quitclaim deed should include a description of the property being transferred. Per the commissioner of state lands, a legal description may include the street address, lot number, parcel number, parcel location, township, range, and subdivision information.
Signing
- Per Ark. Code § 18-12-203, all real estate conveyances, including property transfers via an Arkansas quitclaim deed, must be notarized. The notary must verify your identity at the time of signing.
- Ark. Code § 18-12-403 further notes that the grantor’s spouse must also sign an acknowledgment agreeing to the property transfer if they co-own the home and it is not a homestead. Both spouses must sign the deed as grantors if the property is a homestead.
Terminology
Per Ark. Code § 18-12-102, any deed that includes the words “grant,” “bargain,” or “sell” automatically guarantees that the grantor owns the property free of encumbrances.
To ensure your quitclaim deed is valid without guarantees, you must specifically indicate that the quitclaim deed doesn’t guarantee the grantor owns the property free and clear of liens and encumbrances.
Additional Documents
Ark. Code § 26-60-107 stipulates that when conveying property using an Arkansas quitclaim deed, you must submit the signed and notarized deed and a real property tax affidavit of compliance form as provided by the Arkansas Department of Finance and Administration.
Filing
- Ark. Code § 14-15-404 requires all deeds, bonds, or other documents affecting the transfer of property titles to be registered with the office of the circuit clerk in the county where the property is located.
- Transfer tax is based on the amount of consideration for the transferred property. It is typically paid at the time of transfer, per Ark. Code § 26-60-106. Unless otherwise indicated, the tax is paid half by the grantor and half by the grantee.
Validity Requirements
Arkansas quitclaim deeds and other recorded documents must meet certain formatting requirements to be valid, per Ark. Code § 14-15-402. Requirements include:
- Paper: Print the deed on 8 ½ in. by 11 in. paper.
- Legibility: The quitclaim deed must be legible.
- Margins: Include a 2.5 in. margin at the top right of the first page and the bottom of the last page. All other margins on the sides and bottoms must be .5 in.
- Spaces: Reserve space at the top right corner of the first page for the recorder to add the file mark.
Content Requirements
To meet legal requirements and ensure a smooth property transfer, include the following information in your Arkansas quitclaim deed:
- Document title.
- Grantor and grantee names.
- Legal description of the property.
- Vesting clause transferring the property.
- Co-ownership information for tenancy in common, per Ark. Code § 18-12-603.
- Consideration amount.
- Preparer information.
- The return address for the recorded deed.
- Transfer tax certification.
- Notarized signature of the current owner.
- Signatures of two witnesses.
Quitclaim Deeds vs. Other Property Transfer Methods in Arkansas
| Quitclaim Deed | Transfers real estate from the grantor to the grantee without any title or ownership guarantees. If title issues arise after the property transfers, the grantee is liable and cannot sue the grantor. |
| General Warranty Deed | Transfers real estate from the grantor to the grantee free and clear of all liens and encumbrances. If title issues arise after the transfer of property, the grantor will take responsibility for correcting those problems. |
| Special Warranty Deed | Transfers property to the grantee with limited responsibility on the part of the grantor. The grantor only claims liability for title or ownership issues that arose during their ownership. They are not liable for any issues that arose prior to their tenure. |
| Beneficiary Deed | As defined under Ark. Code § 18-12-608, a beneficiary deed conveys real estate to a beneficiary upon the grantor’s death. It is also known as a transfer on death (TOD) deed or estate planning deed. |
| Title Insurance | Grantees can protect themselves financially from title defects by taking out a title insurance policy. If defects arise following the transfer of property via a quitclaim deed, title insurance can help cover the associated costs. |
| Joint Ownership | Per Ark. Code § 26-35-303, transfers property to a joint owner or owners upon the death of the grantor. This is typically known as joint tenancy with a right of survivorship. |
Sample Arkansas Quitclaim Deed
Below, you can view a sample Arkansas quitclaim deed. Customize this template easily with our document editor and then download it as a PDF or Word document.
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.
