The quitclaim deed is a legal instrument used to show an individual’s legal rights in a property transferred from one individual to another. If you live in New York and have plans to transfer residential rental property in the name of your spouse, sibling or children, a quitclaim deed is indispensable for you. It is also known as a quitclaim or a non-warranty deed. The person conveying interest in property is known as a grantor and receiver of the rights to property under question is called grantee.
What are the Legal Requirements for a Valid Quitclaim Deed?
Almost every country has a similar process to prepare a quitclaim deed. All you need is to meet the constitutional requirements to make your deed valid. For new people, you can download free New York quitclaim deed form.
These requirements are highlighted under the statutes in the Property Laws under Section 258 for a Quitclaim deed to be valid.
- The quitclaim deed must state full names of the grantor, mailing address, and marital status.
- The deed must contain details of consideration paid for the estate, the type of consideration and the actual value of the consideration.
- The deed must contain details about grantee: full legal name, mailing address, marital status, and the vesting (how the grantee wishes to hold the property’s title: sole or co-ownership).
- A deed in New York is deemed valid only if it carries the detailed legal description of the property/parcel. It must have details like the plot, block, section, and unit number, etc.
- The deed must also state the previous references for the deed; i.e., any ownership details of the title before the grantor. The recite is essential to maintain the clarity of the chain’s title. The restrictions associated with the estate should also be carried in the recite in detail.
- Both the parties must sign the deed in the presence of the notary public or other official and authorities allowed by the law.
- Once signed, the deed must be recorded at county’s clerk office, and the county where the estate is located. Maintaining record with the office of the county clerk is vital for the validation of the transfer.
- Speak to the county’s clerk office for confirmation over the acceptable forms of payment.
- Most counties in New York expect you to include miscellaneous documents for the recording of the quitclaim deed. You must use the county’s cover page which is downloadable from the county’s website while recording the deed. This cover page is essential and is counted in the total pages while calculating the recording fee.
- The transfer tax charged is payable while the deed is recorded. To file a transfer tax, one has to file form TP-584 with the county clerk. The state needs the grantor to pay all taxes pending on the property on conveyance.
- Failing to pay taxes, can get the grantee stuck with a burden of pending taxes.
- While transferring property in the name of a trust, no taxes are imposed by the state.
Unlike other real estate agreements used to transfer property rights and interests, a quitclaim does not provide any warranties on the title. This means that the grantor may not be the actual owner of the property of which the rights are transferred, and the grantee will only receive the rights held by the grantor. The lack of warranty ensures grantee faces zero legal recourse if the title has defects such as unknown liens or recording errors.
This feature makes a New York Quit Claim Deed Form; an unreliable real estate deeds, but this is one of the most popular, fast, and the easiest deeds.
The primary requirement for a quitclaim deed in New York is to establish a level of trust with the grantee. Apart from transferring property to trust or family, you can use quitclaim deed in case of divorce or a new marriage to transfer rights to the property to/from your spouse.