A New Jersey quitclaim deed transfers a property owner’s rights to a grantee. It’s commonly used for family transfers or divorce proceedings. Unlike a warranty deed, it doesn’t guarantee a clear title. Beware of misspellings like “quit claim” or “quick claim” deeds.
Laws & Requirements
Statute § 46:5-1 to 46:5-6: If the quitclaim deed contains “release,” “remise, release and quitclaim,” or “grant and release,” it’s interpreted as if the grantor “grants and conveys” to the grantee.
Signing Requirements § 46:14-2.1: The grantor(s) must sign and have the document notarized.
Recording Requirements The quitclaim deed must be filed at the County Clerk’s Office where the property is.
Transfer Tax: Yes
Additional Documents For tax exemptions use Form RTF-1. If consideration for the transfer is over $1,000,000, use RTF-1EE with the deed. Form GIT/REP-1 is needed for non-resident sellers unless exemptions apply.
How to File
- Gather Documentation: Reference the existing title for the legal description and current owner information before drafting a quitclaim deed.
- Complete Paperwork: Fill out the quitclaim deed and additional necessary forms (e.g., Form RTF-1 for tax exemptions, RTF-1EE for transactions over $1,000,000, and GIT/REP-1 for non-resident sellers). Wait to sign any documents requiring notarization until in the presence of a notary.
- Notarization: Have a notary witness and validate the signing of the documents, confirming the grantor’s identity with their ID.
- File with County Clerk: Submit the forms and pay fees at the county clerk’s office in the property’s location to make the real estate transfer official.
Costs and Fees
- Filing Fees: New Jersey charges $30-$40 for the first page and $10 for each additional page when filing with the county clerk, varying by county.
- Real Estate Transfer Tax: Taxes range from $2 per $500 for properties under $150,000 to $6.05 per $500 for those over $1 million, generally paid by the grantor.
- Tax Exemptions: New Jersey offers exemptions for seniors, blind or disabled individuals, and certain transfers (e.g., government sales, divorce, wills). No multiple partial exemptions.
- Additional Taxes: The IRS assesses gift taxes on high-value real estate transfers, while capital gains taxes apply to profits from property appreciation, with some exceptions.
Frequently Asked Questions
Can Quitclaim Deeds Be Used for Transferring Property Between Family Members in New Jersey?
Yes, in New Jersey, quitclaim deeds are often used for property transfers between family members. This is due to their simplicity and the absence of warranty on the title, making them ideal for transactions where there is a high level of trust between the grantor and grantee. However, it’s crucial to note that quitclaim deeds do not protect the grantee from any existing claims or liens against the property.
How Do I Correct an Error on a New Jersey Quitclaim Deed?
Correcting an error on a New Jersey Quitclaim Deed involves several steps:
- Identify the error that needs correction.
- Prepare a Corrective Quitclaim Deed that specifies the correction, referencing the original deed by its recording date and book/page number.
- Include a statement within the corrective deed clarifying that it is issued for the purpose of correction, detailing both the mistake and the correction made.
- Have the grantor sign the Corrective Deed in the presence of a notary public.
- Record the Corrective Deed at the County Clerk’s Office where the original deed was recorded, along with any required fees. It’s vital to adhere to New Jersey’s legal standards for recording deeds to ensure the correction is legally recognized.
Is Consideration Required for a Quitclaim Deed in New Jersey?
Yes, consideration, or the value exchanged for the property, must be stated in a New Jersey Quitclaim Deed. Although the consideration can be minimal, such as “$1.00 and other valuable considerations,” it must be specified to validate the transfer. This requirement helps clarify the intent behind the property transfer and ensures the deed complies with state regulations.
Do I Need a Lawyer to Execute a Quitclaim Deed in New Jersey?
While it’s not legally required to have a lawyer to execute a Quitclaim Deed in New Jersey, consulting with a real estate attorney can provide valuable guidance and ensure that the deed meets all legal requirements. A lawyer can help draft the deed accurately, identify any potential issues with the property transfer, and ensure that the process is completed smoothly and in compliance with New Jersey law.
