A Georgia quitclaim deed transfers ownership and interest in a property from one party (the grantor) to another party (the grantee) without any warranties that the title is good or that the property is free and clear of any liens or claims. It only transfers whatever ownership interest the grantor has at that time.
Laws & Requirements
Statute: Ga. Code § 48-4-44.
Signing Requirements: Ga. Code § 44-5-30: A quitclaim deed needs to be signed by the grantor and one witness in the presence of a notary public.
Recording Requirements: Ga. Code § 44-2-1: After the deed is signed and notarized, it needs to be filed with the Clerk of the Superior Court of the county where the property is located.
Transfer Tax: Yes. According to Ga. Code § 48-6-1, if the consideration exceeds $100, then the real estate transfer tax based upon the sale price is at the rate of $1 for the first $1,000 and at the rate of 10 cents for each additional $100.
Additional Documents: Unless exempt, payment of transfer tax and Form PT-61 Real Estate Transfer Tax Declaration are required at the time of recording. The form can be completed and filed electronically with the Georgia Superior Court Court Clerks’ Cooperative Authority.
How to File
- Get the Original Property Deed: If you don’t have a copy, you can obtain one through the Clerks of Superior Court website.
- Copy the Legal Description of the Property: Ensure you accurately transcribe the complete legal property description from the original title to your quitclaim form.
- Complete the Quitclaim Deed: Follow the formatting guidelines and include essential details like grantor and grantee information, return mailing address, transfer clause, property description, tax parcel ID, consideration exchanged, and signatures.
- Sign and Notarize the Deed: Sign before a notary or other authorized officer, along with a disinterested witness.
- Fill out Real Estate Transfer Tax Form PT-61: Disclose the amount of consideration exchanged for the real estate by filling out this form.
- File the Document: The Clerk of the Superior Court in the county where the property is located will then record and index the document according to legal requirements.
- Deliver the Executed Deed to the Grantee: Once the grantee accepts the deed, the transfer becomes valid.
Costs and Fees
Filing Fees:
- Recording fees: Typically, a fixed amount of $25. The grantor bears the responsibility for submitting the deed and covering the related fees and taxes.
Taxes:
- Transfer Tax: The tax rate is calculated at $1 for the first $1,000 of actual consideration, with an additional $0.10 for each extra $100 or fraction thereof. Certain exemptions to the transfer tax exist, such as properties transferred with consideration less than $100, deeds related to gifts or debts, transfers between spouses due to divorce, and more.
- U.S. Gift Tax (Form 709): There is no state-imposed gift tax. However, if you’ve gifted property through a quitclaim deed and its value surpasses the annual exemption set by the IRS, you might be liable for federal gift tax.
- Capital Gains Tax: The state may impose a capital gains tax on your earnings, depending on both the profit gained from the property sale and the duration of property ownership or habitation. Furthermore, the IRS might also assess a capital gains tax.
Frequently Asked Questions
How long is a quitclaim deed good for in Georgia?
In Georgia, a quitclaim deed remains valid indefinitely once properly executed and recorded. Unlike other legal documents, such as contracts, it has no expiration date.
Once it has been filed with the Clerk of the Superior Court in the relevant county, it becomes a permanent record of the property transfer.
What is the right of survivorship on a quitclaim deed in Georgia?
A Georgia quitclaim deed with the right of survivorship allows property ownership to automatically transfer to the surviving co-owner(s) upon the death of one owner.
This means that if one owner passes away, their share of the property automatically transfers to the surviving owner(s) without the need for probate proceedings.
Can a quitclaim deed be reversed in Georgia?
Generally, a properly recorded quitclaim deed in Georgia cannot be simply reversed. Once filed with the appropriate county recorder’s office, the transfer of ownership is complete. However, there are a few scenarios where you might be able to challenge a quitclaim deed:
- Mutual agreement: If both parties involved in the deed agree, they can create a new document, transferring the property back.
- Mistake: In some cases, the deed may be challenged due to an error in the legal description of the property, for example.
- Fraud or duress: If the deed was obtained through such means, you may be able to challenge it in court. This can be a complex legal process, and consulting with a real estate attorney is essential.
