Free Delaware Quitclaim Deed Form

Understanding the filing fees and taxes for a Delaware quitclaim deed can help you avoid surprises and complete your property transfer without delays or unexpected costs.

Filing Fees

Each county has its own fee structure:

• In Kent County, filing fees are $36 per document, $10 per page, and $5 per tax parcel number.
• New Castle County assesses a $13 per page and $3 parcel description fee. The county also assesses a $30 document fee and a $5 technology fee per document.
• Sussex County has a $30 document fee and a fee of $9 per page, as well as a maintenance fee of $1 per document. Contact the County Clerk’s Office if you have any questions about the fee structure before filing your deed.

Taxes

Property transfers can have tax implications for both the grantor and the grantee.

1. Real Estate Transfer Tax

Del. Code Title 30 Chapter 54 lays out transfer taxes for property exchanges: typically 4%. The state assesses a 3% tax rate unless the county’s tax rate is over 1%, in which case, it is 2.5%. The county has the right to assess between a 1% and 1.5% tax rate. Transfer tax payments are split between the grantor and the grantee at the time of sale.

There are 22 exemptions to the real estate transfer tax, including:

• Wills, mortgages, foreclosures, and leases on commercial property.
• Property values under $100.
• Transfers without consideration between parent corporations and subsidiaries.
• Spousal transfers.
• Transfers due to divorce.
• Transfers between parent and child, or parent and child’s spouse.
• Transfers to trustees.
• Government property sales and purchases.

2. U.S. Gift Tax (Form 709)

The federal government enforces a gift tax on large-value gifts from one party to another, including gifts between relatives.

Because of the value of many pieces of real estate, quitclaim deed transfers are often subject to a gift tax. Delaware does not assess a separate gift tax on real estate transactions.

3. Capital Gains Tax

The capital gains tax is assessed on the increased value of a property after its sale. The IRS looks back on the original purchase price and value of a piece of property compared to how much it sold for and assesses a tax on the amount the grantor obtained when selling the property.

There are exemptions up to a certain amount of the value of the capital gains tax for people who used that property as their primary residence for at least 2 of the last 5 years or who moved due to transfer orders from the United States government or a similar organization.

Delaware has its own capital gains tax, as laid out in Del. Code Title 30 Chapter 11. Delaware may have different rates for people who live in the state and those who live outside it. Consult a tax professional to make sure you fully understand your tax burden as assessed by the state.

Delaware requires quitclaim deeds to meet specific legal standards for the transfer to be valid. Knowing the key requirements helps you complete your deed correctly and avoid delays in recording the property transfer.

Legal Framework

Del. Code tit. 25 § 121 lays out the requirements for Delaware quitclaim deeds, including standard language to be used in the form, including the name of the grantor and grantee and a legal description of the property.

Additionally, a valid Delaware quitclaim deed must meet the following requirements:

Legal Description

The legal description should include details that clearly identify the property being transferred, like the address, subdivision information, and reference to recorded plats or surveys (if available).

The main goal of the legal description is to prevent future disputes by clearly identifying the property’s boundaries and area.

Signing

• According to Del. Code tit. 25 § 122, the quitclaim deed needs to be signed by the grantor in the presence of a notary and validated.
• The statute also allows for deeds to be proved in the Superior Court before witnesses.

Terminology

A Delaware quitclaim deed should avoid including any terms that suggest a warranty or provide assurances regarding the title, as it is issued without any warranty.

Del. Code tit. 25 § 121 provides examples of appropriate wording and layout for such a deed.

Additional Documents

The deed must be filed with Form 5402: Realty Transfer Tax Return and Affidavit of Gain and Value.

Filing

• Del. Code Title 9 Chapter 96 lays out three districts in which to record quitclaim deeds: Kent County, New Castle County, and Sussex County.
• Each county has its own specific fee structure and requirements. You must file a quitclaim deed in the county where the property is located and should contact that county to determine what fees you will need to pay.

Validity Requirements

The real estate transfer may not be validated without following the state’s requirements for quitclaim deeds.

• Language and terms: The deed should not contain any language that indicates a warranty on the property or issues guarantees about the title.
• Notarization: The document must be signed by the grantor in the presence of a notary. The notary will observe the signing process and provide a stamp and signature to validate the document.
• Filing requirements: The deed must be certified under the hand and seal of the office of the clerk in the county in which the property is located. Failure to file the deed may mean that it is not considered valid, which means that the grantor would retain the rights and responsibilities related to possessing that property.
• Taxes and fees: The grantor and the grantee will need to pay all necessary taxes and fees associated with the real estate transfer, including a 4% transfer tax. There is a filing fee assessed by each county at the time the document is filed.

Content Requirements

Several elements should be included in a quitclaim deed:

• The date of the property transfer.
• The name and address of the grantor.
• The name and address of the grantee.
• The consideration for the property (its purchase price or any other property transferred in exchange for the piece of real estate).
• The legal description of the property.

View a sample Delaware quitclaim deed below. Customize it easily with our document editor and download it as a PDF or Word file.