A Colorado quitclaim deed is a document used to transfer property from one person to the next without any warranties as to the owner or title. This is common when transferring property between family members or changing the deed to add or remove a party, like a spouse.
Laws & Requirements
Statute: Colo. Rev. Stat. § 38-30-113(1)(d): Deeds in Colorado must use the word “quitclaim” instead of “convey,” and “The seller quitclaims the property to the buyer” instead of “The seller conveys the property to the buyer.”
Signing Requirements: Colo. Rev. Stat. § 38-35-103: The form must be signed in the presence of a notary public.
Recording Requirements: You must file a Colorado quitclaim deed with the County Clerk and Recorder’s Office.
Transfer Tax: Yes. Quitclaim deeds with consideration over $500 incur a $0.01 documentary fee per $100 (or fraction thereof).
Additional Documents: A Real Property Transfer Declaration (TD-1000), which details property value for tax assessment.
How to File
- Locate the Title: Get the original deed for the property (contains legal description). If unavailable, request a copy from the county recorder’s office.
- Complete the Quitclaim Form: Use the state-approved language and include details like grantor/grantee names, addresses, property description, and consideration paid.
- Notarize the Deed: The grantor(s) must sign the completed deed in front of a notary public (both spouses for co-owned homesteads with a recorded declaration).
- File the Declaration: Complete the Real Property Transfer Declaration (TD-1000) form to provide property value information for tax assessment.
- Record and Pay Fees: Submit the deed, declaration, and fees (recording, documentary if applicable) to the county clerk and recorder’s office where the property resides.
Costs and Fees
Recording Fees:
- Filing a quitclaim deed incurs recording fees mandated by law (Colo. Rev. Stat. § 30-1-103 and § 30-10-421). Fees vary based on document size (larger than standard incurs a $10/page fee), number of pages ($10 first page, $5 each additional), and filing method (electronic filing has a $3 surcharge). Confirm exact costs with your county clerk’s office.
Taxes:
- Transfer Tax: The state charges a documentary fee (graduated rate starting at $0.01 per $100) on most quitclaim deeds exceeding $500 in value.
- U.S. Gift Tax (Form 709): Federal gift tax may apply for quitclaim deeds exceeding IRS exemption limits.
- Capital Gains Tax: State capital gains tax (4.55% as of now) may apply to the grantor’s profit from the quitclaim deed. Federal capital gains tax may also apply, with different rules and rates.
Frequently Asked Questions
Can a quitclaim deed be reversed in Colorado?
Generally no, but exceptions exist:
- Mutual agreement: If both parties (grantor and grantee) agree, they can create a new quitclaim deed transferring the property back.
- Legal challenge: If the quitclaim deed resulted from fraud, coercion, or undue influence, you might be able to challenge it in court.
Can a quitclaim deed be used to add someone as a co-owner to my property title in Colorado?
Yes, a quitclaim deed can be used to transfer ownership interest to another person, making them a co-owner with you. Be sure to discuss ownership percentages and rights beforehand to avoid future disputes.
What happens if I lose the original quitclaim deed after it’s been recorded?
While not ideal, a recorded quitclaim deed is typically sufficient proof of ownership transfer. You can obtain a certified copy from the county clerk and recorder’s office where it was filed.
