When transferring property ownership in New York, there are a few different ways to do so. One of these ways is through the use of a Quitclaim Deed, which is a legal document that transfers any ownership interest in a property from one party to another. However, it is important to understand the implications of using a Quitclaim Deed and the potential risks involved. In this article, Eastcoastlaws.com will explore the basics of Quitclaim Deeds in New York, including their purpose, how to use them, and some of the potential risks involved.
What is a Quitclaim Deed?
What exactly is a quitclaim deed, then? A quit claim deed, also known as a quitclaim deed, is a legal instrument used in New York that conveys ownership of real estate but says absolutely nothing about the owner’s title. A quitclaim deed transfers the owner’s entire interest in the property to the person receiving it; however, it only transfers what they actually own, unlike a warranty deed, which is typically used in the sale of real estate between a buyer and seller and is a guarantee from the seller that the property is free and clear of encumbrances, liens, and any other title holders. In light of this, if two people jointly hold the property and one of them quitclaims their stake to their brother, they can only transfer their respective halves. This implies that the recipient of the title is not the exclusive owner.
Additionally, since a quit claim deed only transfers title, if the person who transferred title (referred to as the “Grantor”) really had no legitimate interest in the property, to begin with, not only does the person on the receiving end of the quitclaim deed (referred to as the “Grantee”) not have any title now, but the person who incorrectly conveyed the title to begin with and who executed the quit claim deed may not be liable for any encumbrances.
Quitclaim deeds are most frequently used when transferring property without a formal sale. Examples include when the property is transferred between relatives (such as when parents give their children a home), between married spouses (after marriage, when one spouse wants to add the other to the title of his or her separate property), between divorcing spouses (when one spouse will keep the home), or when the property is transferred into a living trust.
No title search or title insurance is used during the straightforward deed transfer process. It is quick and simple. Quitclaim deeds aren’t used for real estate sales because the new owner isn’t given any assurances concerning the title or how legitimate it is.
It is crucial to remember that quit claims and warranty deeds only affect ownership (title), and they have no bearing on any underlying mortgages on the property. The mortgage is a distinct piece of writing. This is significant in cases of divorce because one spouse may quitclaim the property to the other, but this does not necessarily mean that they are no longer jointly and severally liable for the mortgage.
Quitclaim deeds in New York
Any New York state quit claim deed must be filed with the County Clerk’s Office in the city or county where the property is located. This is true whether it is a quitclaim deed NY or a quitclaim deed NY. Any real estate quit claim deed in New York is outlined in accordance with NY Real Prop L 258. (2015). Once more, the New York state quit claim deed’s only function is to transfer ownership. It does not promise or warrant that the property is free and clear of liens or other encumbrances or even that the conveyer has title to the property or a rightful ownership interest in it. It only states that the conveyor is passing to the conveyer any title or interest they may have in the item.
As a result, a certain level of confidence is needed when it comes to quitclaim deed NY. Because the buyer obviously does not know the seller, quitclaim deeds are typically not utilized for the sale of any property. Quit claim deeds are typically utilized to:
- transfer property to or from a revocable living trust
- transfer property to one spouse as part of a divorce
- transfer one co-owners interests to another co-owner
- transfer property you own by yourself into co-ownership with someone else
- change the way owners hold title to the property
Does a quit claim deed expire in New York? The mere passage of time will not cause your quit claim deed in New York to expire or lose its validity. Be advised, nevertheless, that a quitclaim deed in New York does not become a public record if it is not recorded. As a result, if the Grantor executed a second deed to another party for the same property and recorded it before you recorded yours, that deed would take precedence. Also, if you take an exceptionally long time to record your deed, someone can contest its legitimacy, particularly if the grantor is no longer alive. As a result, you should record your quit claim deed as soon as possible.
How to file Quitclaim Deed Form in New York
How is a quitclaim deed executed? A legitimate quitclaim deed NY must be in writing in order to transfer title through quit claim deed NY. This legal record comprises the grantor’s (the person transferring the property) and grantee’s names, the legal description of the property being transferred, the county in which it is situated, the date of the transfer, and other information (person receiving the property). If there was a cost associated with the transfer, that sum is included. The grantor notarizes his or her signature before signing the document.
Further filings, some of which are based on the location of the Property itself, can be needed in addition to the quit claim deed NY. The quitclaim deed NY merely states that whatever the Grantor’s relationship to the Property may be, it will be transferred to another party as a result of this conveyance. It does not offer concrete evidence of that relationship. Each and everyone quit claim deed must be registered with the county clerk’s office in the area where the property is situated.
How to get a quit claim deed form? In addition to submitting Form TP-584, which is required by all counties, another form that must be filled out is a 5217 form. Except for NYC, the 5217 form is also required by all counties. NYC has its own version of the RP 5217 NYC or RP 5217 NYC form.
Each 5217 form should be self-explanatory to fill out.
On the first page locate the box in the upper left-hand corner. Here, you must enter the “Name,” “Address,” “State,” and “Zip Code” of the individual filling out this form using the first four blank lines.
In the next section of this box, “After Recording Return To,” you must provide the New York County Recorder the Address where you would like the filed paperwork to be mailed.
Report the New York County where the Property is located on the first blank area of the quit claim deed, which is placed directly below the heading “State of New York.”
The whole Amount needed for the transfer of this Property must be paid, as stated in the paragraph declaration in the middle of the first page. Then, enter the number in the parenthesis after writing this in the first space.
The words “Grantor” and the Grantor’s Name must be stated on the two spaces following “in hand paid to.” The Grantor’s Home Address should appear in the third space after this sentence. Then fill in the following three spaces with the “County of,” “City of,” and “State of” this home address.
This paperwork will also define the grantee of the property. The two places after “…remise, release, and quitclaim unto” should be filled in with the Complete Name and the word “Grantee.” Enter the Grantee’s Home Address in the third space that follows this statement. The Grantee’s “County of,” “City of,” and “State of” must be listed on the three slots that follow.
Declare the Property’s County just before the phrase “New York to-wit.” You must include the Physical Address and Legal Description of the Property below this.
The Grantor must then sign, print, and fill out the first half of the second sheet with his or her address. This must be notarized in order to be valid. Just below the Grantor Signature section, there will be a portion set aside for this specific use only.
Organize all of your documents, including the necessary County-specific tax forms. Contact the New York County Registrar responsible for the county where the property is located after that. To correctly file this documentation with that authority, obtain the directions and fees specific to that County’s submission requirements.
Tax After Completing Quitclaim Deed In New York
Each county sets its own charge for submitting a quit claim deed in New York state. However, as of 2018, the baseline charge for submitting a quit claim deed form in New York is $125 for residential or farmland, while the fee is $250 for all other types of property. The statewide RP-5217 form is subject to these fees. NYC has its own filing costs for quit claim deeds utilizing the RP 5217 NYC form and RP 5217 NYC form. They are typically the priciest. At the time of submitting, there are other fees as well. They 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.
Key Elements Of A Quitclaim Deed In New York
A quitclaim deed is a legal document used to transfer ownership of real property from one party to another. In New York, there are several key elements that must be included in a quitclaim deed to make it legally valid:
- Names of parties involved: The names of the grantor (person giving up ownership) and grantee (person receiving ownership) must be clearly stated in the quitclaim deed.
- Property Description: The quitclaim deed must contain a clear and accurate description of the property being transferred, including the address, parcel number, and any other identifying information.
- Consideration: Consideration refers to the amount of money or other value being exchanged for the property. In a quitclaim deed, consideration may be nominal or non-existent, but it must be clearly stated.
- Signatures: The grantor must sign the quitclaim deed in the presence of a notary public or other authorized official. The grantee may also need to sign the deed, depending on the specific circumstances.
- Delivery and acceptance: The quitclaim deed must be delivered and accepted by the grantee to be legally valid. This means that the grantor must physically give the deed to the grantee, and the grantee must accept it.
It’s important to note that a quitclaim deed only transfers whatever ownership interest the grantor has in the property, and does not guarantee that the title is free and clear of any liens or other encumbrances.
Advantages and Disadvantages Of Using A Quitclaim Deed in New York
A quitclaim deed is a legal document used to transfer ownership of real property from one party to another. In New York, there are several advantages and disadvantages to using a quitclaim deed:
- Simplicity: Quitclaim deeds are relatively simple and straightforward to prepare and execute, making them a popular choice for transfers of property between family members or in other informal transactions.
- Cost: Because quitclaim deeds do not involve a title search or title insurance, they can be less expensive than other types of real estate transfers.
- Quick transfer: Quitclaim deeds can be executed quickly and do not require the involvement of a real estate agent, which can make them a convenient option for parties who want to transfer ownership quickly.
- Limited protection: A quitclaim deed only transfers whatever ownership interest the grantor has in the property, and does not guarantee that the title is free and clear of any liens or other encumbrances. This can expose the grantee to potential financial liabilities in the future.
- No warranties: Unlike a warranty deed, a quitclaim deed does not come with any warranties or guarantees regarding the condition or quality of the property being transferred.
- No legal recourse: If a grantee later discovers a defect in the title or ownership of the property, they may not have any legal recourse against the grantor, as the grantor has only transferred whatever ownership interest they had at the time of the transfer.
- Limited use: Quitclaim deeds are generally not recommended for use in commercial transactions or other situations where the parties involved are not familiar with each other or the property being transferred.
Differences Between A Quitclaim Deed And A Warranty Deed In New York
A quitclaim deed and a warranty deed are two types of legal documents used to transfer ownership of real property in New York. The key differences between these two types of deeds are:
- Transfer of ownership interest: A quitclaim deed transfers whatever ownership interest the grantor has in the property, whereas a warranty deed guarantees that the grantor has good and marketable title to the property and transfers the entire ownership interest.
- Warranties and guarantees: A warranty deed comes with warranties and guarantees regarding the condition and ownership of the property being transferred, while a quitclaim deed does not come with any warranties or guarantees.
- Title search and insurance: A warranty deed typically requires a title search to ensure that the title is free and clear of any liens or other encumbrances, and often requires title insurance to protect against any future claims to the property. A quitclaim deed does not require a title search or title insurance.
- Use in commercial transactions: Warranty deeds are commonly used in commercial real estate transactions, where there is a greater need for certainty and protection against potential claims or defects in title. Quitclaim deeds are generally not recommended for use in commercial transactions.
- Parties involved: Quitclaim deeds are commonly used in transfers of property between family members or in other informal transactions, while warranty deeds are typically used in transactions involving unfamiliar parties or when financing is involved.
In summary, the key difference between a quitclaim deed and a warranty deed is the level of protection and guarantees provided to the grantee. While a quitclaim deed can be a simple and convenient way to transfer ownership of property, a warranty deed provides greater protection and assurance to the grantee but may be more expensive and time-consuming to prepare and execute.
Situations When A Quitclaim Deed Is Used In New York
In New York, quitclaim deeds are often used in the following situations:
- Transfers between family members: Quitclaim deeds are commonly used in transfers of property between family members, such as parents transferring ownership of a property to their children.
- Transfers between spouses: Quitclaim deeds may be used in transfers of property between spouses, such as during a divorce or separation.
- Resolving boundary disputes: Quitclaim deeds may be used to resolve boundary disputes between adjacent property owners.
- Adding or removing a co-owner: Quitclaim deeds may be used to add or remove a co-owner from a property.
- Clearing up title issues: Quitclaim deeds may be used to clear up title issues, such as when a previous owner’s interest in the property needs to be released.
- Gifts or charitable donations: Quitclaim deeds may be used to make gifts of property or to donate property to a charitable organization.
- Informal transfers: Quitclaim deeds may be used in informal transfers of property between parties who are familiar with each other and the property being transferred, such as between friends or business associates.
It is important to note that a quitclaim deed may not be appropriate for all real estate transactions, particularly those involving commercial properties or unfamiliar parties.
Role Of Attorneys In The Quitclaim Deed Process In New York
In New York, attorneys can play a crucial role in the quitclaim deed process. A quitclaim deed is a legal document used to transfer ownership of real property from one party to another. It is commonly used when there is no money exchanged, such as in cases of gifting or transferring property between family members.
Here are some ways attorneys can assist in the quitclaim deed process in New York:
- Drafting the Quitclaim Deed: Attorneys can draft a legally binding quitclaim deed that includes all necessary information, such as the names of the grantor (the person transferring the property) and the grantee (the person receiving the property), a legal description of the property, and any conditions or restrictions on the transfer.
- Reviewing the Quitclaim Deed: Attorneys can review the quitclaim deed to ensure that it meets all legal requirements and is enforceable. This can help prevent any future disputes or legal issues.
- Conducting a Title Search: Attorneys can conduct a title search to ensure that the property is free of any liens or encumbrances that could affect the transfer of ownership.
- Recording the Quitclaim Deed: Attorneys can ensure that the quitclaim deed is properly recorded with the appropriate county clerk’s office. This is important to establish legal ownership of the property and to protect the interests of both the grantor and the grantee.
- Providing Legal Advice: Attorneys can provide legal advice on the implications of the quitclaim deed transfer, such as tax implications and potential risks associated with transferring ownership of the property.
Overall, attorneys can provide valuable assistance in the quitclaim deed process in New York, ensuring that the transfer of property ownership is done in a legally binding and secure manner.