A Tennessee quitclaim deed is an efficient way to transfer property because it doesn’t guarantee title or ownership rights. Instead, the grantor transfers their interest to the grantee without legal promises. Parties with existing relationships often implement this deed because it carries more risk due to its lack of warranties.
Laws & Requirements
Statute: Tenn. Code § 66-5-103 offers guidance on writing an enforceable quitclaim deed. The deed should include the phrase, “I hereby quitclaim to [the grantee] all my interest in the following land [describing it].”
Signing Requirements: The grantor must have a notary public or two witnesses observe their signature (Tenn. Code § 66-22-101).
Recording Requirements: Per Tenn. Code § 66-5-106, the grantor must file their quitclaim deed with the Register of Deeds in the county of the property’s physical location.
Transfer Tax: Yes (Tenn. Code § 67-4-409).
Additional Documents: Per Tenn. Code § 67-4-409, a grantor must file an Oath of Value Statement with any real property transfer subject to the realty transfer tax. This statement should specify the purchase price and property value.
How to File
- Get a Copy of the Property Deed: Obtain a copy of the original deed with the details you need to write your quitclaim deed.
- Note the Legal Property Description: Familiarize yourself with the property’s legal description.
- Draft the Quitclaim Deed: Draft the quitclaim deed using the statutory language and include the legal description.
- Sign: Sign the deed before a notary or two witnesses.
- Complete the Oath of Value: Complete the Oath of Value if your transfer has a realty transfer tax.
- Register the Deed: Visit your Register of Deeds to record the document.
Costs and Fees
Filing Fees:
Each county charges a standard $10 registration fee. Counties also have permission to charge an additional $2 service fee (Tenn. Code § 8-21-1001).
Taxes:
- Real Estate Transfer Tax: Per Tenn. Code § 67-4-409, the grantor must pay a tax of $0.37 for every $100.
- US Gift Tax: You may owe gift tax to the federal government if the property you conveyed via a quitclaim deed exceeds their exemption limit, which the Internal Revenue Service updates yearly.
- Capital Gains Tax: Tennessee doesn’t have state capital gains tax, but you may be responsible for paying federal capital gains tax per Topic no. 409.
Frequently Asked Questions
What Is the Tax Base for a Quitclaim Deed in Tennessee?
The tax base for a quitclaim deed in Tennessee is the grantee’s consideration to the grantor. If the grantor gives the property to the grantee as a gift, the grantor won’t owe any transfer tax because the consideration will be $0 or a nominal amount such as $10.
Can I Reverse a Quitclaim Deed in Tennessee?
The grantor can only typically reverse a quitclaim deed in Tennessee if both parties agree to it. A judge may reverse it if they find that the grantor wasn’t mentally competent or signed the deed under duress, coercion, or fraud.
When Should I Not Use a Quitclaim Deed in Tennessee?
Consider not using a quitclaim deed in the following instances:
- When there are unknown encumbrances.
- In complex real estate transactions.
- In transactions with strangers.
