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.
How to File
Filing a quitclaim deed in Tennessee means completing the form, notarizing it properly, and recording it with the register of deeds. Following the right process ensures a valid transfer.
Step 1: Get a Copy of the Property Deed
The original deed contains critical details you need to create your quitclaim deed. The owner may have a copy of the document in their possession. If not, you can also request a copy from the Register of Deeds in the property’s county.
Step 2: Note the Property’s Legal Description
Tenn. Code § 66-5-103 requires quitclaim deeds to include a legal description of the property. You can find the legal description on the existing deed. In general, it should include any of the following:
- Subdivision and lot
- Metes and bounds
- Section, township, and range
- Property street address
Step 3: Draft the Quitclaim Deed
Create a quitclaim deed using the language provided under Tenn. Code § 66-5-103 or similar terminology. Your completed Tennessee quitclaim deed should include the following details:
- The grantor’s and grantee’s names and addresses.
- A legal description of the property.
- The preparer’s name and address.
- The amount of consideration exchanged.
- The grantor’s signature.
- The grantor’s spouse’s signature if the grantor is married and the property is a homestead.
Step 4: Sign and Notarize
Per Tenn. Code § 66-22-101, the grantor must sign a quitclaim deed before a notary public or two subscribing witnesses. Any quitclaim deed a grantor submits electronically must also be notarized.
Step 5: Complete the Verification of Consideration
If the deed is subject to recordation tax, the grantee must acknowledge the consideration amount for the property transfer via verification of consideration (or an oath of value) under Tenn. Code § 67-4-409.
You can add this as a section in the deed or submit it as an attached affidavit. Deeds exempt from recordation tax need not include an oath of value. Instead, the deed should note the specific statutory exemption.
Step 6: Register the Deed
In accordance with Tenn. Code § 66-5-106, you must register the quitclaim deed and pay the appropriate taxes and fees to the county register where the property rests.
Costs and Fees
Understand the filing fees and tax implications of filing a Tennessee quitclaim deed so you can prepare for the associated costs.
Filing Fees
Each county charges a standard $10 registration fee when you record a quitclaim deed. Counties also have permission to charge an additional $2 service fee (Tenn. Code § 8-21-1001). Please anticipate a $5.00 fee for each additional page in your document.
Taxes
In addition to recording fees, property transfers can trigger several types of taxes.
1. Real Estate Transfer Tax
Tenn. Code § 67-4-409 establishes a recordation tax for real estate transfers, including those via quitclaim deeds.
Who Pays the Recordation Tax?
The grantee (the new owner) pays the recordation tax.
Exemptions to the Recordation Tax
The state excludes some transfers from the recordation tax. The following transfers are exempt from the recordation tax:
- A creation or dissolution of a tenancy by the entirety:
- By the conveyance from one spouse or both spouses to a trustee and immediate reconveyance by the trustee in the same instrument as tenants in common, tenants in common with right of survivorship, joint tenants or joint tenants with right of survivorship; or
- By the conveyance from one spouse or both spouses to the original grantor in the instrument and the original grantor’s spouse; or
- By the conveyance from one spouse to the other.
- A division of property that was previously held by tenants in common.
- A release of a life estate to the beneficiaries of the remainder interest.
- An execution of property distribution by a revocable living trust or will.
- A division or release of property as part of a divorce decree or settlement.
- A transfer to or from a revocable living trust created by the transferor or their spouse.
Recordation Tax Rate
The recording tax rate is $0.37 per $100. For standard deeds with title warranties, this tax applies to the consideration received for the property transfer or the value of the property, whichever is greater.
The tax amount is based only on the actual consideration for which the real estate was conveyed if the deed uses terminology that only transfers the grantor’s interest without warranty.
2. US Gift Tax (Form 709)
Tennessee does not charge a gift tax, but you may owe gift tax to the federal government if the property you conveyed via quitclaim exceeds their exemption limit.
The Internal Revenue Service (IRS) updates gift tax exemptions annually, so you can confirm with them to determine whether you owe. In 2024, you must pay gift tax on any amount over $18,000. If you owe gift tax, you can pay it with your annual income tax using Form 709.
3. Capital Gains Tax
Tennessee doesn’t charge capital gains tax. However, you may owe capital gains tax if the consideration you received for a property transfer via a quitclaim deed is over a certain amount. The IRS sets specific rates for capital gains and losses in Topic no. 409 depending on your annual household income, how long you owned the property, and how much of a profit you made from the sale.
If you’re unsure whether you owe capital gains tax, consult a tax professional or real estate attorney. You can file your capital gains statement when you complete your federal income tax at the end of the year.
Tennessee Quitclaim Deed Requirements
Tennessee requires quitclaim deeds to follow particular rules to be valid. Completing your deed properly ensures your transfer goes through without unnecessary delays.
Legal Framework
Tennessee laws outline the form, use, effect, and responsibilities of transferring property via a quitclaim. Tenn. Code § 66-24-101 establishes that a property owner may convey property to another owner by recording a deed with the county register.
Tenn. Code § 66-5-103 lists a quitclaim deed’s language and intent, including title warranty disclaimers. The vesting language should be as follows: “I hereby quitclaim to [grantee] all my interest in the following land [legal description of the property].”
Legal Description
A legal description of the property should follow the vesting language, per Tenn. Code § 66-5-103. Legal descriptions may include:
- Street address
- Subdivision and lot
- Metes and bounds
- Section, township, and range
- Parcel identification number
Generally, the description should provide precise measurements by which a land surveyor can locate and identify the real property.
Signing
Per Tenn. Code § 66-22-101, a quitclaim deed must include the grantor’s original signature and be acknowledged by a notary public. The grantor may provide an electronic signature as defined under Tenn. Code § 8-16-302.
Additional Documents
Suppose the conditions of your property transfer require you to pay recordation tax. In that case, the new owner must sign a statement of consideration to verify the amount they paid for the property (Tenn. Code § 67-4-409).
This acknowledgment (also called an oath of value statement) can be included in the deed itself or added as a separate affidavit. If the deed is exempt from recordation tax, you can simply state the exemption and applicable reference instead.
Filing
Tenn. Code § 66-5-106 declares that you must file a quitclaim deed with the county where the property exists for it to be valid and enforceable. When you file, you may have to pay recording fees and taxes based on the consideration the grantee offers. If you’re not sure whether you owe taxes, contact your county’s Register of Deeds for guidance.
Validity Requirements
Tennessee law doesn’t outline specific requirements for formatting quitclaim deeds, but they should follow these generally accepted standards:
- Be on paper no smaller than 8.5 by 11 inches and no larger than 8.5 by 14 inches.
- Have text size no smaller than 10-point font.
- Be printed in black ink only.
- Top and bottom margins of at least three inches on the first page.
- Top, bottom, and side margins of at least one inch on subsequent pages.
Tenn. Code § 66-24-101 provides the following validity requirements for deeds, including quitclaim deeds:
- Be written in English or have a translation accompanied by an affidavit.
- Be legible so the Register of Deeds can record it and make copies.
- If it’s illegible, it must contain an affidavit with all the necessary information.
Content Requirements
Your quitclaim deed must contain the following information:
- The grantor’s and grantee’s name and address.
- The name and address of the person who prepared the document.
- A statement of consideration.
- The grantor’s original signature.
- Spouse’s signature for a homestead owned by a married grantor.
- Acknowledgment of a notary or two subscribing witnesses.
Quitclaim Deeds vs. Other Property Transfer Methods in Tennessee
Quitclaim Deed | Conveys whatever interest the seller has in the property but doesn't provide guarantees or warranties. |
General Warranty Deed | Includes a guarantee from the seller that they have clear title to the property and selling rights. |
Special Warranty Deed | Limits the extent of the seller's warranties, as the seller only guarantees a clear title for their ownership period. |
Transfer on Death Deed | Enables the property owner to designate beneficiaries who will automatically inherit the property when the owner dies. |
Trustee's Deed | (For property held in a trust). It lets the trustee convey property ownership according to the trust agreement's terms. |
Sample Tennessee Quitclaim Deed
See a free example of a Tennessee quitclaim deed below. You can edit the template with your information and download it as a PDF or Word file.
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.