What Is a New Jersey Quitclaim Deed?
A New Jersey quitclaim deed lets a grantor transfer property to a grantee without making promises. It only transfers the ownership interest, regardless of whether the grantor has a valid interest. The grantee receives the property as-is, without any issues being resolved. They’re responsible for all title defects, including existing claims or liens, on the property.
It’s recommended that only parties who trust each other use a New Jersey quitclaim deed. It’s common to add a spouse to the deed, transfer a property after a divorce, and correct a minor error (like a name misspelling).
What to Include in a New Jersey Quitclaim Deed
To be valid and properly transfer interest without making warranties, a New Jersey quitclaim deed must contain a proper statement of conveyance. Per NJ Rev Stat § 46:5-4, any deed using the words “remise,” “release,” or “quitclaim” shall only transfer ownership that the seller is legally allowed to give. A clear statement of conveyance can help avoid issues and confusion surrounding what the grantee will receive as part of the NJ quitclaim deed.
In addition to a statement of conveyance, here are some other essential New Jersey quitclaim deed requirements:
- Grantor’s name and mailing address
- Grantee’s name and mailing address
- Legal description (can be written by referencing a recorded deed or using the Metes & Bounds or Lot & Block systems)
- Consideration for the property (amount paid or nominal amount)
- Name of the document preparer
Sample New Jersey Quitclaim Deed
View our free sample New Jersey quitclaim deed to get an idea of what elements to include. You can tailor it to your needs using our guided questionnaire, then download it as a PDF or Word document.
Formatting Requirements for Quitclaim Deeds in New Jersey
To be eligible for recording, a New Jersey quitclaim deed must meet one of the following requirements (NJ Rev Stat § 46:26A-5):
- Be legibly printed on paper no larger than 8.5 inches by 14 inches; or
- Be in compliance with regulations on the form of documents promulgated by the Division of Archives and Records Management in the Department of State
How to File a Quitclaim Deed in New Jersey
The New Jersey quitclaim deed filing process includes preparing the document, notarizing it, and recording it with the county. Handling each step properly secures the transfer of property.
Step 1 – Gather Your Documentation
Before putting together a New Jersey quitclaim deed, you will need to reference the existing title to the property. The title should contain the legal description of the property as well as information about the current owner.
Step 2 – Fill Out Your New Jersey Quitclaim Deed
Fill out all information required for the quitclaim deed. Ensure that you follow the content and formatting requirements as noted above.
Step 3 – Complete Additional Documentation
Fill out other paperwork for your real estate property transfer, if applicable. Here are some examples of documents you might need:
- Form RTF-1 for tax exemptions
- Form RTF-1EE for real estate transfers in which the consideration is over $1,000,000
- Form GIT/REP-1 for non-resident sellers (unless you have an exemption)
Do not sign any forms that require notarization until you are in the presence of a notary, as they will need to witness you signing and dating those forms to validate them.
Step 4 – Take the Forms to a Notary
Per NJ Rev Stat § 46:14-2.1, a notary public must acknowledge a New Jersey quitclaim deed. Locate a notary and have them witness the grantor’s signature on it, as well as on the other accompanying documents as needed. The notary will stamp and sign the documents, confirming their validity.
Step 5 – File the Forms with the County Clerk’s Office
Visit the county clerk’s office in the county where the property is located. There, you will record the quitclaim deed and pay all relevant transfer fees and taxes on the property. The real estate transfer is not valid until it has been filed with the county clerk’s office.
How Much Does a Quitclaim Deed Cost in New Jersey?
Filing a quitclaim deed in New Jersey often means paying recording fees and potentially a realty transfer fee. Knowing these expenses in advance helps you better prepare for the full cost of transferring ownership.
Filing Fees
Filing fees are charged when you file paperwork with the county clerk’s office. In New Jersey, these start at $30 (like in Camden County) and $40 (like in Sussex County) for the first page of the document. An additional $10 fee is generally added for each further page. Various counties may have different fees, so check with the county clerk’s office ahead of time to get a better estimate of your costs.
Real Estate Transfer Tax
The real estate transfer tax in New Jersey depends on a complex schedule. It ranges between approximately $2 per $500 for considerations less than or equal to $150,000 and up to $6.05 per $500 for considerations exceeding $1 million. Properly calculating real estate transfer taxes will ensure a smooth transfer for all parties.
The real estate transfer tax is generally paid by the grantor of the property.
Exemptions to the Transfer Tax
New Jersey allows both partial and full exemptions to the transfer tax. Partial exemptions include:
- Seniors over age 62
- Blind individuals
- Qualifying disabled individuals
- Property categorized as low- or moderate-income housing
- Deeds are not eligible for more than one partial exemption.
Full exemptions for transfer taxes, per NJ Rev Stat § 18:16-5.1, are:
- Considerations of less than $100
- Sales by or to the government
- Releasing security for a debt or obligation
- Correcting an error in a previously recorded deed
- Sales for delinquent taxes
- Sales for bankruptcy purposes
- Transfers between husband and wife
- Transfers between parent and child
- Transfers as part of a divorce agreement
- Executors transferring a property as part of a last will and testament
There are also circumstances under which transfer fees may be waived for corporate transfers, including those between parent and child companies.
US Gift Tax
The IRS assesses a gift tax on gifted property that exceeds a certain value, including real estate. Because quitclaim deeds are often used for gifted property transfers, both grantor and grantee should take the potential gift tax into account when managing the property transfer. While there are exemptions to the gift tax assigned by the IRS annually, real estate transfers typically exceed that value. New Jersey does not impose its own gift tax.
Capital Gains Tax
Capital gains tax is assessed on the amount by which the value of the property increases between its purchase and its sale. In New Jersey, capital gains tax at the state level is taxed the same as ordinary income.
If the property was your primary home and you meet the federal ownership and use tests (lived in it for two of the last five years), you may be able to exclude up to a $250,000 gain as a single filer or a $500,000 gain if you’re married filing jointly.