A California quitclaim deed allows a property owner (the grantor or seller) to transfer ownership or interest in a property to another party (the grantee or buyer) without the need for a title search, other discovery, or providing a warranty. In California, quitclaim deeds are often used to transfer property between family members, add or remove a spouse, change the status of a jointly owned property, or transfer real property into a living trust.
Laws & Requirements
Statute: California has no specific language requirements for a quitclaim deed. Use words like “quit claim” rather than “grant” or “sell” when creating your deed. The term “grant” implies a warranty of title and quitclaim deeds do not provide any guarantees of warranty.
Signing Requirements: Per Cal. Gov. Code § 27287, California quitclaim deeds must be notarized. The grantor (seller) must sign in the presence of the notary. The deed doesn’t need to be witnessed.
Recording Requirements: Once signed, all forms are filed with the County Recorder’s Office in the county where the property is located, along with the correct transfer tax amount.
Transfer Tax: Yes. Per Cal. Rev. & Tax. Code §§ 11911-11913, counties or cities charge a documentary transfer tax on any document indicating a real estate transfer. But there are instances where a transfer tax is exempt such as gifts, inheritances, transfers between spouses where no money is exchanged, transfers in divorce or legal separation, transfers in business reorganization, or writings to secure a debt.
Additional Documents: Form BOE-502-A, a Preliminary Change of Ownership Report (PCOR) form, must be filed along with the quitclaim deed in the county where the property is located.
This form must be signed by the grantee. In addition, some counties may require a Documentary of Transfer Tax (also known as a Transfer Tax Affidavit) or a Notice of Exempt Transaction.
How to File
- Get the Deed: Obtain the original deed from the current owner.
- Visit the County Office: If you don’t have the deed, go to the County Recorder or Clerk’s office to get a copy for a fee.
- Property Description: Ensure you have a legal description of the property, which can be broad but must accurately locate it.
- Legal Assistance: Consider consulting a lawyer if you need guidance or are uncertain about the process.
- Complete the Form: Provide all necessary details on the quitclaim form obtained from the County Recorder’s office.
- Notarize: Sign the form in front of a notary public with proper identification.
- File PCOR: Submit the Preliminary Change of Ownership Report (PCOR) along with the deed to the County Recorder’s Office.
- File Forms: Take the completed forms to the County Recorder or Clerk’s office, paying recording and transfer taxes.
- Provide Deed: Give the recorded original deed to the grantee, keeping a copy for your records.
Costs and Fees
Filing Fees:
- County Base Filing Fees: Starting at $10 for the first page and $3 for each additional page, costs vary by county. (Cal. Gov. Code § 27361)
- Building Homes and Jobs Act Recording Fee: $75 per transaction per real property parcel, capped at $225. (Cal. Gov. Code § 27388.1)
Taxes:
-
Documentary Transfer Tax (DTT): Typically covered by the seller, with exceptions for certain transfers. (Cal. Rev. & Tax. Code § 11921)
- State transfer tax rate: 0.11%.
- Additional transfer taxes may be imposed by cities.
- Some cities, like San Francisco, Oakland, and Santa Monica, have tiered tax rates based on property value.
- U.S. Gift Tax (Form 709): Federal tax may apply for property transfers without monetary exchange.
- Capital Gains Tax: Both state and federal governments may impose taxes on property transfers via quitclaim deeds.
Frequently Asked Questions
How long does it typically take to record a quitclaim deed?
The time it takes to record a quitclaim deed in California can vary significantly depending on various factors, including the specific processes, procedures, and the population of each county. To provide a general idea, for instance, Orange County typically takes approximately two to three weeks to complete the recording of a deed.
Is there a specific expiration date for quitclaim deeds?
Quitclaim deeds in California do not have a predefined expiration date. However, it’s essential to be aware of the statute of limitations when dealing with such deeds, which is 4 years in California. This means that anyone wishing to dispute the validity of the deed has a maximum of 4 years to do so from the date it was recorded.
How to correct a typo on a California quitclaim deed?
- Ensure compliance with recording requirements.
- Reference the recorder identification number or book and page of the original document being modified, as per Cal. Gov. Code § 27361.6.
- Complete a corrective statement, identify the error, and clearly reference the original document on the first or cover page.
- Choose one of the following methods:
- Re-record the original deed with corrections made directly on it, along with re-signing and re-acknowledging.
- Submit a cover sheet detailing changes along with re-signing and re-acknowledging.
- Issue a Correction Deed meeting all deed recording requirements.
- File an Affidavit of Minor Corrections for minor errors, covering specific types of typos as outlined in Cal. Gov. Code §§ 27201, 27280.5, 27288.1, 27361.6, 27361.7 and Cal. Rev. & Tax. Code § 11932.
Quitclaim or interspousal transfer deed: which one is better during a divorce in California?
When getting a divorce in California and transferring property between spouses, it’s better to use an Interspousal Transfer Deed than a Quitclaim Deed.
The Interspousal Transfer Deed doesn’t trigger a reassessment of the property’s value for tax purposes. This means you won’t face higher property taxes just because you’re transferring the property to your spouse during the divorce. It’s especially useful if your home’s value has gone up a lot over the years, and you can avoid unexpected tax increases.
