An Oregon quitclaim deed is a legal document that transfers rights or interest in a real estate property from one person (grantor) to another (grantee). This type of property transfer doesn’t guarantee the ownership or clarity of the title. So, do your due diligence to ensure you’ll get a defect-free title.
Laws & Requirements
Statute: ORS § 93.865 outlines the required format for quitclaim deeds, including identifying the parties, describing the property, and stating the consideration. It clarifies that a quitclaim deed transfers the grantor’s current title or interest in the property but doesn’t guarantee future interests.
Signing Requirements: Per ORS § 93.410, the grantor’s signature is vital, and acknowledgment involves confirming one’s voluntary action. This is done before a notary public or recognized state officials.
Recording Requirements: § 205.130: File the deed at the County Court Clerk’s Office and verify fees with the Recorder’s Office before submitting. Non-conforming documents may incur a $20 fee along with recording fees.
Transfer Tax: No (except in Washington County).
How to File
- Obtain Property Description: Retrieve the legal description from the original deed or property records. Ensure accuracy for partial rights, additions, or corrections.
- Complete the Quitclaim Deed: Draft the document following ORS § 93.865 guidelines, including “quitclaim and release” language. Add ORS § 93.040 disclosures and note consideration per ORS § 93.030.
- Sign Before Notary: The grantor must sign in front of a notary public. Ensure proper acknowledgment to avoid invalidation.
- File with County Clerk: Record the deed within 15 days of signing, following ORS § 93.635. Submit to the County Clerk, pay fees, and consider transfer tax for Washington County properties.
Costs and Fees
Recording Fees:
- Fees for real estate documents vary by county, typically including a per-page fee of $5.00 mandated by ORS § 205.320, along with additional charges.
Taxes:
- Transfer Tax: Washington County imposes transfer taxes with specific provisions and exemptions. These are shared between buyers and sellers, typically on a 50/50 basis, although parties can agree otherwise. Tax rates are set at $1.00 per $1,000 of the selling price, as per the Code of Ordinances § 3.04.070.
- U.S. Gift Tax (Form 709): Gifts of property valued over a certain amount amount may trigger federal gift tax obligations, although Oregon does not impose a separate one.
- Capital Gains Tax: The state taxes capital gains at the personal income tax rate, with exemptions for transactions below $100,000. Federal taxes depend on income and sale earnings, regardless of state exemptions.
Frequently Asked Questions
Can a quitclaim deed be challenged in Oregon?
In Oregon, quitclaim deeds can be challenged under certain circumstances, although the grounds for challenge are typically more limited compared to other types of deeds. One common basis is fraud or misrepresentation by the grantor, such as if the grantor falsely claims ownership of the property being transferred.
Additionally, if the grantor lacked the legal capacity to execute the deed, for example, due to mental incapacity or coercion, the deed may be challenged on grounds of incapacity. However, it’s essential to note that simply being dissatisfied with the outcome of a property transfer or discovering later that the property has title issues does not necessarily provide sufficient grounds for challenging a quitclaim deed.
What is the difference between a quitclaim deed and a warranty deed in Oregon?
While both quitclaim deeds and warranty deeds are used to transfer property ownership in Oregon, a quitclaim deed offers minimal protection to the grantee regarding the title. In contrast, a warranty deed provides more comprehensive assurances from the grantor regarding the quality and validity of the title.
Do I need to notify the mortgage lender when using a quitclaim deed?
It’s generally advisable to notify the lender when using a quitclaim deed, especially if the property being transferred is subject to an existing mortgage. While a quitclaim deed primarily transfers the grantor’s interest in the property to the grantee, it does not remove any existing mortgage obligations.
Therefore, the grantor may still be liable for the mortgage debt even after the transfer unless the lender agrees to release them from the obligation. Failure to notify the mortgage lender about the transfer could potentially lead to complications or legal issues down the line.
