How Do Quitclaim Deeds Work in Florida?

A quitclaim deed is a legal document that transfers property ownership from one person (the grantor) to another (the grantee) without providing any guarantees or warranties about the property's title. In Florida, a quitclaim deed transfers whatever interest the grantor holds in the property, if any. This means the grantor does not guarantee clear title or that the property is free from liens or claims.

Process for Creating and Filing a Quitclaim Deed in Florida

• Drafting the Deed: The quitclaim deed must include the names of the grantor and grantee, a description of the property (usually the legal description found in prior deeds), and a clear statement of the intent to transfer ownership. The document should also reference the consideration (the value exchanged for the property, even if nominal, like $1).

• Signatures and Notarization: The grantor must sign the quitclaim deed in the presence of two witnesses and a notary public. Florida law requires both witnesses to sign the document as well.

• Filing the Deed: Once signed and notarized, the quitclaim deed must be filed with the county court clerk where the property is located. Depending on the property's value, filing fees, and documentary stamp taxes may apply.

Important Considerations: Why Work with an Attorney?

Although it is possible to draft and file a quitclaim deed independently, handling it without legal guidance can lead to significant risks:

• Title Issues: Quitclaim deeds offer no protection regarding the state of the title. Any existing liens, encumbrances, or claims on the property will remain in place, which can lead to future legal disputes if not addressed.

• Tax Consequences: Incorrect property transfers may incur unexpected tax liabilities or penalties.

• Errors in the Deed: Inaccuracies in the property description or failure to meet legal requirements can invalidate the deed or result in future legal challenges, potentially requiring costly legal actions to correct.

An attorney ensures that all legal requirements are adequately addressed, reducing the likelihood of future complications.

Requirements for a Valid Quitclaim Deed in Florida

• Legal Description of the Property: Must be detailed and accurate, typically using the lot and block or metes and bounds description.

• Grantor and Grantee Names: The names of both the grantor and grantee must be clearly stated and accurately reflected in the deed.

• Consideration: The deed must specify that value is exchanged, even if nominal. Listing $1 is common to avoid higher documentary stamp taxes and standard county recorder fees.

• Signature and Witnesses: The grantor must sign the deed with two witnesses and have it notarized in person or through an online notary service.

• Recording the Deed: The deed must be filed with the local county clerk's office for the property transfer to be valid. This can be done in person or electronically, often through a law firm like Easler Law, which provides electronic recording services.

When to Use a Quitclaim Deed

Quitclaim deeds are most commonly used when the parties have an established relationship and there is little concern about the property's title history. Common scenarios include:

• Transferring property between family members, such as adding a spouse to the deed or removing one after a divorce.

• Transferring property into a living trust or LLC.

• Correcting errors in a prior deed, such as misspelled names or incorrect property descriptions.

Obtaining legal guarantees about the property's title is one of the most important considerations in transactions involving unrelated parties. For example, instead of using a quitclaim deed, a general warranty deed offers greater protection than quitclaim deeds, which provide no assurances. With a warranty deed, the seller guarantees clear ownership of the property, free from any hidden liens, claims, or encumbrances. This guarantee protects the buyer, as the seller is legally obligated to defend the title against future disputes.

Selecting the correct type of deed is also important to avoid future issues with selling or refinancing a property and to ensure long-term security in a real estate transaction. Consulting with a knowledgeable real estate attorney can provide guidance in choosing the appropriate deed and avoiding potential legal risks.