New York State Requirements For A Quitclaim deed

by ECL Writer
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A quitclaim deed is a legal document used to transfer ownership of real property from one person to another. In the state of New York, there are certain requirements that must be met in order for a quitclaim deed to be considered valid.

First and foremost, the quitclaim deed must be in writing and signed by the grantor, or the person transferring ownership of the property. The grantor must also have the legal right to transfer ownership of the property. This means that the grantor must be the current owner of the property, or have the authority to transfer ownership on behalf of the current owner.

The quitclaim deed must also include a description of the property being transferred. This description should include the street address of the property, as well as the legal description of the property, which is typically provided by a surveyor or a title company.

The quitclaim deed must also include the names of the grantor and the grantee, or the person receiving ownership of the property. The grantee must be a natural person, meaning an individual, or a legal entity such as a corporation. It’s important to note that the grantee should be identified with his/her full legal name.

The quitclaim deed must also be acknowledged before a notary public, which verifies the identity of the grantor and confirms that the grantor has signed the document voluntarily. The notary public will also add their signature, seal, and date of notarization.

In addition, a quitclaim deed in New York state must also be filed with the county clerk’s office in the county where the property is located. The county clerk will then record the deed, which makes it a matter of public record. This process is essential as it provides constructive notice to the public of the change in ownership of the property.

What You Should Know

It’s important to note that a quitclaim deed does not provide any warranties or guarantees about the property being transferred. A quitclaim deed only transfers the grantor’s interest in the property, if any. It does not provide any assurances about the property’s title, liens, or any other potential issues. Therefore, it’s important for the grantee to conduct their own research on the property and its history before accepting the transfer.

There may be certain fees associated with filing a quitclaim deed in New York state, including a recording fee, which varies depending on the county. It’s important to check with the county clerk’s office for the specific fees in the county where the property is located.

In summary, in order to be considered valid in New York state, a quitclaim deed must be in writing, signed by the grantor, include a description of the property, including the names of the grantor and grantee, be acknowledged before a notary public, and be filed with the county clerk’s office for recordation.

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New York state requirements for a quitclaim deed
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How To File A Quitclaim Deed In New York

To file a quitclaim deed in New York, the following steps should be taken:

  1. Obtain a quitclaim deed form: This form can be obtained from a legal stationery store, an attorney, or downloaded from the internet.
  2. Fill out the form: The form should be filled out with the names of the grantor (the person giving up the property) and the grantee (the person receiving the property), as well as a description of the property being transferred.
  3. Have the form notarized: The quitclaim deed must be notarized by a notary public.
  4. File the form with the county clerk: The quitclaim deed must be filed with the county clerk’s office in the county where the property is located.
  5. Pay any applicable fees: There may be fees associated with filing the quitclaim deed, such as recording fees or transfer taxes.

It is important to note that a quitclaim deed only transfers the interest that the grantor has in the property, and does not guarantee or warrant that the property is free from any liens or encumbrances. It is advisable to consult with an attorney before filing a quitclaim deed.

In counties outside of New York City, file a Real Property Transfer Report (Form RP-5217) with the county clerk along with the quitclaim deed. Quitclaim deeds filed in New York City use a Real Property Transfer Report (Form RP-5217NYC) and a Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate, and Certification of Exemption from the Payment of Estimated Personal Income Tax (Form TP-584), both of which are filed with the county clerk.

Fees To File A Quitclaim Deed In New York

Although certain filing costs for a New York quitclaim deed are the same from county to county, others vary. For residential or farm property, the standard filing fee for a quitclaim deed is $125, whereas the fee for any other property is $250 as of 2018. The RP-5217 form is charged with these fees. At the time of filing, there are additional fees, though. These include minimal filing expenses for other documents, such as Form TP-584 fees. There is also a basic recording charge, and each page file has a little additional fee.

Generally, the fees include a recording fee and a transfer tax.

Recording fee: The recording fee is charged by the county clerk’s office for recording the quitclaim deed and is typically based on the number of pages in the document. It can range from a few dollars to several hundred dollars.

Transfer tax: New York State imposes a transfer tax on the transfer of real property, which is typically paid by the grantor. The transfer tax rate is generally 0.4% of the value of the property, but there are some exemptions that may apply. It is advisable to check with the county clerk’s office for the exact amount of the transfer tax.

It is also important to note that other fees may apply, such as a mortgage recording tax, if the property is subject to a mortgage. It’s best to check with the county clerk’s office or consult with a real estate attorney to determine all the applicable fees for filing a quitclaim deed in New York.

Tax Consequences Of A Quitclaim Deed In New York

The tax consequences of a quitclaim deed in New York will depend on the specific circumstances of the transfer. Generally, there are a few key tax implications to consider when filing a quitclaim deed in New York:

  1. Capital gains tax: If the grantor sells the property for more than they paid for it, they may be subject to capital gains tax on the difference between the sale price and their basis in the property.
  2. Gift tax: If the grantor gives the property to the grantee as a gift, they may be subject to the gift tax. The gift tax is a federal tax that applies to gifts of more than $15,000 per year per recipient.
  3. Transfer tax: New York State imposes a transfer tax on the transfer of real property. The transfer tax rate is generally 0.4% of the value of the property, but there are some exemptions that may apply.
  4. Property tax: The grantee will be responsible for paying property taxes on the property from the date of transfer.

Also, note that these tax implications can be complex and it’s advisable to consult with a tax professional or attorney to understand the tax consequences of a quitclaim deed in New York.

Consult your financial advisor if you have any doubts concerning your tax liability. Even while title searches are not necessary for a quitclaim deed the same way they are for other types of deeds, you still want your quitclaim document to be properly drafted.

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