A Hawaii quitclaim deed allows a property owner (grantor) to quickly transfer ownership of a property to another party (grantee) without any sort of guarantee of ownership or title discovery process. This deed transfer is often used to move property between family members or trusted parties.
Laws & Requirements
Statute: Title 28, Chapter 502 (Bureau of Conveyances; Recording).
Signing Requirements: Haw. Rev. Stat. § 502-41: The grantor must sign in the presence of a notary public.
Recording Requirements: Haw. Rev. Stat. § 502-31: All quitclaim deeds are filed with the Hawaii Land Court or the Bureau of Conveyances.
Transfer Tax: Yes. Correction deeds are exempt.
Additional Documents: Conveyance Tax Certificate Form P-64A or Form P-64B, Real Estate Disclosure Statement, and Certificate of Good Standing (if applicable).
How to File
- Write Preparer and Recipient Details: Add their information and mailing address.
- Specify Conveyance Amount: Indicate the payment for the property in both words and numbers.
- Add Grantor and Grantee Information: Write full details of the grantor and grantee, including name, address, county, city, and state.
- Include Property Legal Description: Record the property’s legal description, including the address and tax map key number.
- Sign before a Notary: The Grantor’s signature must be witnessed by a notary public, with name and address printed below.
- File the Deed and Await Recordation: Submit the form to the Bureau of Conveyances in Honolulu, which will record in one of three ways.
Costs and Fees
Filing Fees:
- Regular System: $41 for deeds of 50 pages or less and $106 for deeds over 50 pages.
- Land Court: $36 for deeds of 50 pages or less and $101 for deeds over 50 pages.
Taxes:
- Transfer Tax: The grantor typically pays the transfer tax. Rates vary based on property type and value, calculated per 0. Exemptions include transfers involving minimal amounts, deed corrections, property partitioning, and divorce-related quitclaims.
- U.S. Gift Tax (Form 709): Quitclaims are often deemed gifts by the IRS; Form 709 determines federal gift tax liability with exemptions detailed in instructions.
- Capital Gains Tax: State and federal governments impose capital gains tax when property is sold for more than its cost.
Frequently Asked Questions
How long is a quitclaim deed good for in Hawaii?
In Hawaii, a quitclaim deed does not have an expiration date or a specific time limit on its validity. Once properly executed, recorded, and filed with the Bureau of Conveyances, a quitclaim deed remains effective indefinitely.
Generally, a quitclaim deed is in effect until the property is transferred again through another legal instrument or until the parties involved decide to revoke it through a separate legal process if necessary.
Why is Hawaii conveyancing so different from other states?
Hawaii’s conveyancing stands out due to its centralized recording agency, the Bureau of Conveyances, overseeing all deeds. However, while the Bureau ensures documents meet standards for recording, it doesn’t assess whether the deed effectively transfers title without creating potential title issues.
Moreover, Hawaii has two different recording systems, regular and land court, each with its own set of requirements.
What is the difference between land court and regular system?
The main difference between the state’s land court and regular system lies in their methods of recording property titles:
- The regular system primarily serves to notify the public that a document, such as a deed, is recorded and on public record.
- The land court system goes further by providing state certification for property ownership, ensuring clear and definitive title.
Properties registered with the state since the 1900s are typically included in the land court system. In contrast, non-registered properties fall under the regular system, creating distinct pathways for property registration and ownership certification.
