A Delaware quitclaim deed transfers a property without warranty on the title. For parties who know and trust one another and are looking for an easy property transfer method, this could be the ideal solution.
Most often, quitclaim deeds are used to either correct problems with the initial deed or to transfer property between relatives, but they can also be used to manage some types of corporate transfers.
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.
Quitclaim Deeds vs. Other Property Transfer Methods
| Quitclaim Deed | Quick property transfer method that does not include a warranty on the property. The new owner takes on the full risk regarding any liens or encumbrances on the property. |
| General Warranty Deed | Conveys full warranty protection to the new owner of the property. May be a slower property transfer method. |
| Special Warranty Deed | Offers a warranty on the property for the period it was owned by the grantor. Either party may face some risk related to encumbrances or liens, depending on when they occurred. |
