A North Carolina quitclaim deed allows for the transfer of property from one person to the next without any warranty about the quality of the title. It transfers whatever ownership and interest the grantor (seller/owner) has in a property to the grantee (buyer/new owner). A North Carolina quitclaim deed offers no title warranty, meaning title problems could exist.
Laws & Requirements
Statute Chapter 47 through Chapter 47H
Signing Requirements § 47-38: All North Carolina quitclaim deeds need the grantor’s signature to be acknowledged by a notary public.
Recording Requirements § 47H-2: Quitclaim deeds must be recorded with the Register of Deeds in the county where the property is located.
Transfer Tax: Yes
How to File
- Step One – Gather Information: Obtain all necessary information and documentation, including the current title to understand the property’s legal description and ownership.
- Step Two – Fill Out the Form: Complete the quitclaim deed form with essential details such as names of the grantor and grantee, and property description. Don’t sign until in a notary’s presence.
- Step Three – Notarization: Have the grantor’s signature validated by a notary as required by N.C. Stat § 47-38, showing a government-issued ID for identity proof.
- Step Four – Record the Deed: File the notarized deed at the register of deeds office in the property’s county, adhering to N.C. Stat. § 47H-2. Pay the recording fee, typically $26 for standard documents, and provide a mailing address for the recorded deed. Make copies for both grantor and grantee for records.
Costs and Fees
- Filing Fees: In North Carolina, filing fees for recording real estate documents vary by document type. For quitclaim deeds, the cost is typically $26 for the first 15 pages. Deeds of trust and mortgages have a higher fee of $64 for the first 35 pages, with an additional $4 per extra page.
- Real Estate Transfer Tax: North Carolina imposes a real estate transfer tax of $1 per $500 of property value, payable by the grantor (N.C. Stat § 105-228.30).
- Transfer Tax Exemptions: Certain transactions are exempt from the real estate transfer tax, including transfers by will, gifts, transactions without consideration, and properties securing a debt (N.C. Stat. § 105-228.29).
- US Gift Tax: High-value gifts, including real estate, may be subject to the US gift tax, though some exemptions apply. North Carolina does not have a separate gift tax.
- Capital Gains Tax: Gains from the sale of property are subject to capital gains tax. The IRS offers exemptions for properties used as the grantor’s primary residence for at least two of the last five years. North Carolina taxes capital gains as regular income. Consultation with an accountant is advised to understand tax obligations.
Frequently Asked Questions
How does a quitclaim deed affect property rights in North Carolina?
A quitclaim deed transfers any interest the grantor has in the property to the grantee without warranties or guarantees about the title’s quality. In North Carolina, this means the grantee receives the property “as is,” potentially including any title defects or legal encumbrances that exist at the time of transfer.
The grantee is not protected against any claims from third parties or issues with the title that may arise after the deed is executed. Therefore, it’s crucial to perform due diligence and consider a title search before accepting a quitclaim deed transfer.
Can a quitclaim deed transfer property to a family member in North Carolina?
Yes, in North Carolina, a quitclaim deed can be used to transfer property ownership between family members. This is often done to gift property or settle matters in a divorce or estate planning.
However, it’s essential to understand that the quitclaim deed does not guarantee the grantor owns the property free and clear of liens or encumbrances. Therefore, a title search is recommended even in transactions among family members to ensure a clear understanding of the property’s title status.
Do I need a lawyer to execute a quitclaim deed in North Carolina?
While North Carolina law does not require you to have a lawyer to execute a quitclaim deed, it is highly recommended to consult one. A lawyer can ensure that the deed complies with North Carolina law, accurately reflects the parties’ intentions, and properly transfers the property.
They can also advise on potential tax implications and help conduct a title search to uncover any issues with the property’s title. Engaging a lawyer can help prevent future disputes and ensure a smooth property transfer process.
What happens to a mortgage when a property is transferred via quitclaim deed in North Carolina?
In North Carolina, a quitclaim deed transfers the grantor’s interest in the property to the grantee without affecting any existing mortgages or liens. If the property has a mortgage, the original borrower (grantor) remains responsible for the mortgage debt unless the lender agrees to transfer the debt to the grantee or release the grantor from liability.
It’s crucial for both parties to understand that a quitclaim deed does not change the responsibility for the mortgage, and both should consult with the mortgage lender to discuss the implications of the transfer on the mortgage obligation.
