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.
How to File
Filing your Oregon quitclaim deed correctly is essential to making the property transfer official. Follow these simple steps to complete, sign, and record your document.
Step 1: Locate the Property Description
You will need the property’s legal description to transfer real estate using a quitclaim deed. Even transferring partial rights, adding someone to a deed, or correcting an error requires a copy of the real estate in question.
Typically, you can find a legal description of the property on the original deed. Simply copy this information onto the quitclaim form word-for-word or reference the previously recorded deed by book and page number, per ORS § 308.240.
Step 2: Complete the Quitclaim Deed Form
Draft your quitclaim deed based on the verbiage provided under ORS § 93.865. Although the language can be modified slightly, it should always include the phrase “quitclaim and release.” This terminology releases the grantor’s interest in the property without granting any warranty of title.
Your document must also include word-for-word disclosures from ORS § 93.040, as well as a statement of consideration, per ORS § 93.030. Consideration for the property includes the actual amount paid, even if it is negligible. If the quitclaimed property is a gift or exchanged for other property, this must also be noted on the form.
Step 3: Sign the Deed Before a Notary Public
Quitclaim deeds must be signed by the grantor before a notary public, judge, or justice of the peace, according to ORS § 93.010 and ORS § 93.410.
Without an acknowledgment by the appropriate authorized witness, your form may be invalidated. If it does not already include a notary acknowledgment, you can find statutory language under ORS § 194.285.
Step 4: File the Document With the County Clerk
ORS § 93.635 requires the grantor to record an Oregon quitclaim deed within 15 days of signing. The deed must be registered with the County Clerk’s Office in the county where the property is situated. You will be required to pay recording fees and may also owe transfer tax if the property is in Washington County.
Costs and Fees
Oregon quitclaim deed filings typically involve recording fees, though there are generally no state transfer taxes. Still, it’s smart to check for local costs so you can complete your transfer without unexpected fees.
Recording Fees
Recording fees for Oregon quitclaim deeds and other real estate documents vary by county:
- ORS § 205.320 mandates a per-page fee of $5.00, but most counties charge an additional recording fee.
- The county clerk may collect a penalty of $20 for filing any documents that do not meet formatting requirements under ORS § 205.232 or content requirements under ORS § 205.234.
Taxes
The state does not charge a transfer tax for real estate conveyances. However, Washington County does charge a transfer tax that predates the deadline established under ORS § 306.815.
1. Washington County Transfer Tax
Transfer tax in Washington County was grandfathered into law because it went into effect in 1985. The statute prohibiting real estate transfer fees and taxes specifically excludes laws or ordinances imposing such taxes on or before March 31, 1997.
Who Pays the Transfer Tax?
The cost of transfer taxes for properties conveyed in Washington County is typically shared by the buyer and seller on a 50/50 split. However, the participants may agree to have one or the other party cover the transfer tax in its entirety.
Exemptions to Transfer Tax
Exemptions to Washington County transfer tax include the following:
- Deeds in lieu of foreclosure.
- Transfers by order of a court.
- Transfers of a seller’s interest in a contract.
- Trustee deeds as a result of foreclosure.
- Fulfillment deeds.
- Documents for security purposes.
- Deeds transferring property with consideration below $14,000.
- Transfers for change of identity or place of organization.
- Property transfers to dissolve a corporation, partnership, or joint venture.
- Transfers of property by gift, devise, or inheritance.
- Transfers of property between spouses by court order due to a divorce or marriage separation.
Tax Rates
Transfer tax rates are established under Washington County Code of Ordinances § 3.04.070 at $1.00 per every $1,000 of the selling price or fraction thereof.
2. US Gift Tax (Form 709)
If the property transferred is a gift, the grantor may owe U.S. gift tax. The state does not charge its own gift tax, but the federal government imposes one for gifts valued over a certain amount.
The exemption amount changes annually, so check with the IRS before filing your annual taxes to ensure you pay the correct amount. If you owe taxes as the property grantor, you will be asked to submit Form 709 with your annual income tax return.
3. Capital Gains Tax
In a real estate transaction involving consideration, the grantor who sold the property via quitclaim deed may owe capital gains tax on a state and federal level. Oregon charges capital gains tax at the regular personal income tax rate, which is based on your total income.
If consideration for the real estate is $100,000 or less, you may be exempt from capital gains in the state. Additional exemptions may apply. However, even if you are exempt from state capital gains tax, you may still owe federal taxes for capital gains. These are based on your annual income, how much you earned from the sale, and how long you lived on the transferred property.
Oregon Quitclaim Deed Requirements
Oregon quitclaim deeds must be carefully prepared according to state law. A properly formatted deed speeds up the transfer and keeps the process stress-free.
Legal Framework
State laws establish the language, requirements, and effects of transferring property using a quitclaim deed. ORS § 93.865 sets legal grounds for using quitclaim deeds to convey real estate.
Per ORS § 93.140, real estate conveyances do not imply covenants or guarantees unless written as a warranty deed under ORS § 93.850. Unlike quitclaim deeds, warranty deeds must include specific language to establish warranty exclusions.
Legal Description
Real estate transfers must include a legal description of the property being conveyed, consistent with ORS § 308.240. For a quitclaim deed, you can usually pull the property description from the original deed. The following methods can legally describe real property:
- Subdivisions.
- Lots, blocks, and additions.
- Boundaries by metes and bounds.
- Plat or map parcels and partitions.
- Book and page reference to previously recorded legal documents.
Required property disclosure statements for sales agreements, earnest money receipts, and fee title property transfers are listed under ORS § 93.040.
ORS § 93.120 also states that any real estate conveyance automatically transfers the full interest of the grantor in the property. However, the grantor can limit the interest by expressing the amount they wish to transfer in clear terms within the quitclaim deed.
Signing
- Per ORS § 93.010, the deed must include the grantor’s signature. The grantor’s attorney or lawful agent can sign on their behalf if necessary.
- The signature must be witnessed and acknowledged by a notary, judge, or justice of the peace, per ORS § 93.410. Statutory forms for notary certificates can be found under ORS § 194.285.
Terminology
- Per ORS § 93.865, a quitclaim deed may include the following language: “[Grantor] releases and quitclaims to [Grantee] all right, title, and interest in and to the following described real property: [Insert legal description].”
- While you can modify the language as needed, a legally binding document must include the term “release and quitclaim.” This allows the grantor to release their rights to the property without warranty of title or ownership.
- After the property description, the quitclaim should include appropriate disclosures per ORS § 93.040, verbatim. A statement of consideration must be listed on the face of the deed, consistent with ORS § 93.030.
Filing
- According to ORS § 93.635, the grantor must record the deed with the county recorder where the property is located within 15 days of signing the deed.
- Avoid unnecessary delays or complications by ensuring your document meets formatting and content requirements.
Validity Requirements
State law requires highly specific formatting for quitclaim deeds and other documents submitted to the county recorder. Requirements under ORS § 205.232 and ORS § 205.135 establish that the documents must be:
- Typed, written, or printed in 8-point or larger font.
- Printed on paper no greater than 8 ½ in. x 14 in.
- On quality paper that can create clear copies.
- Legible and capable of producing a readable photocopy.
Each county recorder’s office may have different formatting and submission requirements. Check with your county recorder prior to submitting your deed to ensure it is formatted correctly.
Content Requirements
To ensure continuity for real estate transfers, Oregon has established multiple requirements for recorded documents, including quitclaim deeds. Content guidelines include:
- Transaction labels (ORS § 205.236).
- Grantor and grantee names (ORS § 205.125).
- The return address for the recorded deed (ORS § 205.180).
- Statement of consideration (ORS § 93.030).
- Tax statement information, if applicable (ORS § 93.260).
- Lien information, if applicable (ORS § 205.125).
- Mortgage or trust beneficiary information, if applicable (ORS § 205.234).
- Property legal description (ORS § 205.160).
Most of the above details must be included on the first page of the deed. Failure to do so may result in additional recording fees at the time of filing. Your county recorder may have other requirements, so check with them before you proceed.
Quitclaim Deeds vs. Other Property Transfer Methods in Oregon
| Quitclaim Deed | Transfers property from the owner to the recipient without warranty of title. Should title defects arise, the new owners will be responsible for resolving them. |
| Warranty and Special Warranty Deeds | ORS § 93.850 establishes the terminology and effect of warranty deeds. ORS § 93.855 provides terminology and legal grounds for special warranty deeds. |
| Joint Property | ORS § 93.180 outlines how a property can be co-owned. Co-ownership allows the interest to pass to the other owner in the event of one owner’s death. |
| Title Insurance | This method may help defray the costs associated with a title defect for an initial premium payment, per ORS § 731.190. |
| Bargain and Sale Deed | Per ORS § 93.860, it transfers property without warranty but includes any interest in the property acquired by the grantor after the transfer. |
| Transfer on Death Deed | Per ORS § 93.967 and ORS § 93.969 transfer on death (TOD) deeds convey property from the owner to an heir or beneficiary upon the owner’s death. |
Sample Oregon Quitclaim Deed
Below is a free sample Oregon quitclaim deed. Complete the form using our document builder and download it as a Word or PDF file.
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.
