A Virginia quitclaim deed is a legal document for conveying property without including any covenants or warranties that protect the grantee from liens or encumbrances. Even though a quitclaim deed isn’t reasonable for large home purchases between parties who don’t know one another, it’s a convenient option when the parties aren’t concerned with buyer assurance.
Laws & Requirements
Statute: Va. Code Tit. 55.1 – Property and Conveyances discusses property deeds, and Va. Code § 55.1-363 provides guidelines for composing a quitclaim deed.
Signing Requirements: Va. Code § 55.1-612 states the grantor must sign the document. A notary public or two witnesses must observe their signature.
Recording Requirements: Per § 55.1-407(A), the grantor must file their quitclaim deed with the County Circuit Court Clerk where the property resides.
Transfer Tax: Yes (Va. Code § 58.1-801).
Additional Documents: Examples of additional documents the grantor must include with their quitclaim deed are disclosure statements like the Building Code or Zoning Ordinance Violations Disclosure (Va. Code § 55.1-706) and the New Dwelling Disclosure (Va. Code § 55.1-702(B)).
Please note that including these documents depends on the building’s condition and other circumstances. You must also file a land record cover sheet with any document conveying real estate (Va. Code § 17.1-227.1).
How to File
- Gather the Necessary Filing Information: Gather the original deed to access the property’s legal description.
- Consider Legal Assistance: While you can file a quitclaim deed independently, you should consider hiring legal assistance to navigate the process’s complexities.
- Fill in Pertinent Information: Fill in pertinent information on your quitclaim deed form, including the parties’ names, the property’s legal description, the property’s value, and consideration exchanged (if applicable).
- Note Any Tax Exemptions: Note any tax exemptions if your transfer doesn’t require the payment of taxes.
- Fill out Accompanying Documents: Fill out accompanying documents to submit with your quitclaim deed, including a land record cover sheet.
- Sign: Sign the document before a notary or two subscribing witnesses.
- File: File your document with the County Circuit Court Clerk at the location where the property exists.
- Wait for Processing: Wait for the office to finish the recording process to make the grantee’s new ownership official.
Costs
Filing Fees:
The filing fee payment structure is as follows (Va. Code § 17.1-275):
- $18 for documents that are ten pages or less.
- $32 for documents that are 11 to 30 pages.
- $52 for documents that are 31 pages or more.
Taxes:
- Recordation Tax: Per Va. Code § 58.1-801, the Virginia recordation tax rate is 25 cents for every $100 (or fraction thereof) of the deed’s consideration or the actual value of the property, whichever is greater.
- Grantor’s Tax: This tax is imposed on all deeds involving property valued at more than $100 (Va. Admin. Code § 23VAC10-320-30).
- US Gift Tax: If you transfer property as a gift without “consideration” or payment, a US gift tax will likely apply to the property transfer. You can use IRS Form 709 to find out the amount owed and learn how to properly pay it.
- Capital Gains Tax: Both Virginia and federal capital gains taxes may apply to the property transfer. Virginia taxes capital gains as income at a rate between 2% and 5.75%, depending on your tax bracket. IRS Topic No. 409 and IRS Publication 551 explain the federal versions of capital gains taxes.
Frequently Asked Questions
What Does It Mean If My Name Is on the Quitclaim Deed But Not the Mortgage in Virginia?
If your name is on the quitclaim deed, you have legal title rights to the property but don’t have any protection against third-party claims that may emerge later. If your name doesn’t appear on the mortgage, you won’t be liable for paying the mortgage unless the grantor specifically transferred it to you during the property conveyance.
How Do I Remove Someone from a Quitclaim Deed in Virginia?
Fill out a new quitclaim deed and obtain the signature of the person you’re removing. Record the deed in the Circuit Court Clerk’s Office and notify all relevant parties.
If the person you want to remove has passed away, obtain their death certificate and a notarized affidavit to attach to the new recorded deed.
How Long Does It Take to Process a Quitclaim Deed in Virginia?
The processing time depends on the busyness of the Circuit Court Clerk’s Office where you file, but you can expect it to take several weeks for the office to record the deed and finalize the transfer of property ownership.
