A Kentucky quitclaim deed is a document that transfers interest in a piece of property from one person (the grantor) to another person (the grantee). You can use it to transfer ownership between family members, such as when adding or removing a spouse in the case of a divorce.
How to File
Filing a quitclaim deed in Kentucky starts with gathering the right documents and following specific signing and recording steps. Careful preparation helps ensure the property transfer is accepted without issues.
Step 1: Secure a Copy of the Property Deed
The current deed to the property contains critical details necessary to proceed with a quitclaim deed. If the current owner or grantor does not have a copy, they can obtain it from the county clerk’s office in the county where the property is situated.
Step 2: Identify the Legal Property Description
When you have obtained the deed, locate the legal property description. You can copy this description into the new quitclaim deed verbatim. Note the original deed’s recording information on your quitclaim deed, as the recorder will need this reference to file your document.
Step 3: Fill Out the Quitclaim Deed Form
Draft a quitclaim deed consistent with the formatting requirements adopted by the Kentucky County Clerk’s Association. The document should include the following information:
- Full names of the grantor and grantee (§ 382.135)
- Mailing addresses for the grantor and grantee (§ 382.135)
- Marital status of the grantor (§ 382.135)
- Name and address of the person who prepared the deed (§ 142.050)
- Statement of consideration (§ 382.135)
- Property tax statement mailing address (§ 382.135)
- Legal property description (§ 382.110)
- Property identification number, if applicable (§ 382.335)
- Vesting language transferring the property
- Derivation clause (§ 382.110)
Step 4: Execute the Deed in the Presence of a Notary or Witness
Sign the deed before the appropriate officer or witness. § 382.130 requires the deed to be signed by the grantor and acknowledged by a notary public, subscribing witnesses, or county clerk. The grantor’s spouse must also sign if the grantor is married, according to § 392.020.
The grantor can also electronically sign and file a deed if they meet the requirements outlined under § 382.075 for signing and acknowledgment.
Step 5: File the Quitclaim Deed
In accordance with § 382.110, submit your quitclaim deed to the county clerk in the county where the property is located. If the property is in multiple counties, you can record the deed in the county where the greater part of the property rests.
Costs and Fees
Recording a quitclaim deed in Kentucky comes with standard filing fees and potential taxes based on the property’s value. Understanding these costs ahead of time can help you file smoothly and avoid unexpected expenses.
Recording Fees
County clerks assess recording fees for recording deeds. § 64.012 establishes a starting rate of $33 for documents that are five pages or less, with $3.00 for each additional page over five.
However, § 142.010 allows the county clerk to assess additional recording fees and taxes, including $4 for each conveyance of real property. Thus, taxes can differ depending on the county and the details of your quitclaim deed.
The recording fee must be paid at the time of registration, so consider contacting the clerk in the county where your property is located in advance to find out how much you will owe.
Taxes
For property transfers with a quitclaim deed, you may owe state and county transfer tax, US gift tax, and capital gains taxes on a federal, state, and local level.
1. Transfer Tax
For properties transferred with consideration, Kentucky charges a transfer tax, per § 142.050.
Who Pays the Transfer Tax?
The tax is assessed against the current property owner or grantor conveying the property.
Exemptions to Transfer Tax
The following title transfers are not subject to transfer tax, per § 142.050:
- Gifts or deeds with nominal consideration to or from US, state, city, or county government entities, agencies, or subdivisions
- Deeds that provide security or release a debt or obligation
- Deeds between spouses
- Deeds between former spouses as part of a divorce
- Deeds for delinquent taxes or assessments
- Deeds on partition
- Deeds transferring property in a merger, consolidation, or conversion of a business
- Deeds transferring property between a subsidiary and its parent corporation for nominal or no consideration, or consideration of the cancellation or surrender of stock
- Deeds under foreclosure or in lieu of foreclosure
- Deeds between a parent and child or grandparent and child with nominal consideration
- Deeds transferring property to a shareholder or owner upon dissolution of a company
- Deeds between an LLC and any of its members
- Deeds between a trustee and a successor trustee
Tax Rates
Transfer tax is computed based on the full actual consideration indicated on the quitclaim deed. If the property is a gift with no or nominal consideration, the tax is based on the estimated property value. The rate is $0.50 for every $500 in value or fraction thereof.
2. US Gift Tax (Form 709)
Kentucky does not have a gift tax, but the federal government may charge the grantor of a gift conveyed via quitclaim deed. The Internal Revenue Service (IRS) annually establishes a gift tax exemption limit. If the value of the gifted property exceeds the exemption limit in the year the property is conveyed, the grantor must pay gift tax.
The latest gift tax information and exemption amounts are on the IRS website. If you owe gift tax on the quitclaim transfer, you may submit Form 709 and your income tax return for that year.
3. Capital Gains Tax
Kentucky charges individuals and businesses for business capital gains over a certain amount. If your quitclaim deed involved transferring property for consideration, you may owe capital gains tax on the profit you made from the sale. Kentucky charges a state capital gains rate established annually by the Kentucky Department of Revenue.
Local jurisdictions may also charge a capital gains tax for property sold for a profit. Check with your local taxpayer service center to learn more about local capital gains tax rates and how to file.
In addition, the IRS charges capital gains taxes for profits on real estate transfers over a certain amount. The IRS calculates capital gains based on your profit from the real estate transfer, your total annual income, and the time you owned the transferred property.
Kentucky Quitclaim Deed Requirements
Kentucky law outlines clear steps for preparing a valid quitclaim deed. Using the right language, including a proper legal description, and following signing rules helps ensure the property transfer is recognized and recorded correctly.
Legal Framework
Kentucky quitclaim deed laws relate the terminology, use, and validity requirements for using a quitclaim deed to transfer property or update an existing deed. Ky. Rev. Stat. § 382.010 establishes the legal foundation for conveying Kentucky real estate interest using a deed. Quitclaim deeds specifically convey ownership interest from the grantor without any covenant of title.
Legal Description
Per § 382.110, deeds submitted for recording, including quitclaim deeds, must include a legal description of the property being transferred. They must also reference the document where the description was derived, including the office, book, and page where that document was recorded.
Property legal descriptions typically include the property’s state, county, and city or municipality. You may also need to include the property identification number outlined in § 382.335.
Signing
According to § 382.130, deeds executed must be signed in the presence of a clerk, subscribing witnesses, or a notary public. If the granting owner is married, their spouse must also sign the quitclaim deed, per § 392.020.
Under § 382.075, a grantor may electronically sign and file a deed if the document meets the statutory signing and acknowledgment requirements.
Terminology
A quitclaim deed does not have to adhere to any particular terminology. However, using “quitclaim and release” in vesting language is wise to avoid implying warranty. Additionally, the deed should include language indicating that the property is transferred without covenants or warranty of title.
Filing
A quitclaim deed must be recorded with the county clerk’s office in the county where the property is located, per § 382.110. If the property is located in more than one county, the deed should be recorded in the county where the majority of the property lies.
Validity Requirements
Kentucky statutes do not establish specific standards for formatting quitclaim deeds. However, the Kentucky County Clerk’s Association has adopted the following standards for all real estate documents:
- Paper size of 8 ½ in. x 11 in. or 8 ½ in. x 14 in.
- One-sided pages with no staples or binding
- 20-pound white paper with no watermarks
- No impression seals unless they are inked
- No colored highlight markers
- Printed or typed in black ink, with dark blue signatures
- Minimum 10-point Times New Roman or equivalent font
- Nine lines per inch maximum spacing
- Three in.-margin at the top of the first page
- All other margins are 1 in.
Content Requirements
A quitclaim deed must also include the following details:
- Grantor and grantee full names (§ 382.135)
- Grantor and grantee mailing addresses (§ 382.135)
- Deed preparer’s name and address (§ 142.050)
- Statement of full consideration (§ 382.135)
- Mailing address for property tax bill (§ 382.135)
- Legal property description (§ 382.110)
- Property identification number, if applicable (§ 382.335)
- Vesting language transferring the property
- Grantor’s marital status (§ 382.135)
- Derivation clause showing where the grantor derived ownership of the property (§ 382.110)
Quitclaim Deeds vs. Other Property Transfer Methods in Kentucky
| Quitclaim Deed | A quitclaim deed conveys real estate interest from the current owner to the recipient without covenants or warranty of title. If issues arise concerning ownership or title, the grantee cannot seek legal compensation from the grantor. |
| General Warranty Deed | A warranty deed conveys property to the new owner with the current owner’s guarantee that the title is free and clear of all liens and encumbrances. The grantor can be held accountable for any title defects or associated claims, regardless of when the issues arose. |
| Special Warranty Deed | A special warranty deed provides limited guarantees when transferring a property. The grantor typically guarantees that they have not conveyed their interest in the property to anyone else and that the title did not become encumbered during their ownership period. |
| Title Insurance | Grantees who accept real estate interest via a special warranty or quitclaim deed can pay a premium for title insurance, which protects from some of the losses associated with potential title defects. |
| Estate-Planning Deeds | Life estate and transfer-on-death (TOD) deeds let the property owner transfer their interest in the real property to a beneficiary upon their death without going through probate. |
| Survivorship Deed | The property owner can add someone to their deed during their lifetime through co-ownership options like joint tenancy with a right of survivorship. When the owner passes away, the property automatically goes to the co-owner listed on the deed without going through probate. |
Sample Kentucky Quitclaim Deed
Check out a sample Kentucky quitclaim deed below. You can personalize it easily with our document editor and then download it as a PDF or Word document.
