If you are faced with the issue of transferring property ownership, you need to carefully select the appropriate document. It should be fully suitable not only for your situation but also to satisfy the laws of New York. Such a document could be a Quitclaim Deed.
When using this form, you need to be very careful, since the document does not promise ownership. It is mainly applied to convey estate within a family, the loved ones, or from an individual to an LLC. Below we will look at the main components of this paper, the purposes for its use, and special requirements.
Definition of the Document
This is a legally binding document that is applied to carry estate from one individual to another. In this instance, a legal entity may also be a party to the agreement. The peculiarity of this form is that the seller does not present a guarantee that the title of the estate is free of third-party interests. The buyer is only given a guarantee that the seller refuses to claim interest on the estate.
The seller can independently search for the title to make sure there are no other interests.
Before writing the form, you must make sure that you have all the necessary information and are ready to complete the following items:
- Preparer’s details — name and address
- Details of the person who will receive the recorded deed — name and address
- County name
- The consideration paid for the estate
- Grantor's and Grantee’s details — names and addresses
- Property legal description
- Grantor’s signature
- Notary acknowledgment
Who Can Practice This Form
The application of this document implies the existence of a certain level of confidence between the parties to the transaction.
Most often, such an agreement is concluded between:
- Family members
- Former spouses
- Close friends
- An individual and their company
With the help of this form, it is quite easy to convey any estate, and it does not take much time. Therefore, it is used to transfer property:
- Which you co-own with the other party
- From one spouse to another in case of divorce
- To (or from) a revocable living trust
- From one co-owner to another
- And more
That is, all these cases do not relate to the ordinary sale in the usual sense of the word.
Laws Regulating the Form
The laws regarding this document and its application in New York are formed in NY Real Property Laws § 258. We will present you with the most important provisions.
According to § 306 of the State Law, the document must be signed by the Grantor. When signing, a notary must be present, who will also sign the document.
To register this deed, you will need to fill out additional forms — Form TP-584, RP-5217-PDF (not needed in New York City), RP-5217-NYC (needed only in New York City).
After you have completed and signed the form, you need to file it with the County Clerk's Office.
Registering a Form in New York
This procedure is approximately the same in every county; the number of fees and sometimes additional documents differ.
After you have received the notarization of your paper, you need to collect additional reports and submit a package of documents to the county clerk’s office. You cannot choose any office, and it is obligatory to register documents at the location of the estate.
Remember, you can always contact a representative of the clerk's office to clarify the sum of payments and additional requirements for documents. You can usually find all the information on the county website.
The payment amounts depend on the county where you register the transaction. However, the averages are:
- $ 125 for filing a quitclaim deed of residential or farm property
- $ 250 for all other types of estate
In addition, there are additional fees for other documents, a recording fee for each page, and so on.
How to File a Quitclaim Deed
We have put together a quick introduction to the process so that you can better understand what to expect if you decide to use this document.1. Negotiate With the Owner
The document must include the price agreed by both parties to the transaction. Since such a document is usually used between people who have mutual trust, there is no need for a real estate agent. But it is recommended to hire an attorney who will qualitatively formulate all the provisions of the deal.2. Gather the Required Data
Above, we talked about what this document includes, so you need to prepare and enter all the data carefully. Be ready to indicate all the details of the transaction, list the parties and, most importantly, give the Property’s full legal description.3. Authorize the Form
In New York, the law requires the signing of a document by the Grantor in the presence of a notary. The notary must fill out an acknowledgment to verify the paper.4. Record the Document
Above, we talked about this procedure in detail. Not only do you need to collect additional forms, but also be prepared to pay the fees.
Tax Consequences of Using This Document
Before choosing this type of deed, you also need to consider the possible tax implications.
To prevent the recipient of the estate from getting bogged down in a lifetime payment of high taxes, the grantor must pay any owed taxes before conveying the estate. Also, they should pay a real estate tax.
If the estate is conveyed through donation, then gift taxes and/or capital gain taxes will apply.
The main idea is that the types of taxes will depend not on the use of this document but on the purpose of the transfer of ownership. We strongly advise you to seek the advice of a financial specialist before deciding to complete a transaction.
The following rules for paperwork are valid:
- Use a font of at least 8 points
- Use only white paper
- Only black ink allowed
- Page sizes are 8.5 x 11 or 8.5 x 14 inches
- Please submit only originals, and photocopies are not accepted
- Be sure to include the names and addresses of all listed parties indicated in the document
- All signatures on the document must be certified by a notary
- Be sure to provide full legal description including State, County, Township & Village where the estate is located in
- If you use attachments, graphs, pictures, tables, be sure to mark them and sign them properly
- Make sure signatures match acknowledgment
To Sum Up
At the end of our article, we want to say that this type of document is one of the simplest papers used to convey estate. But undoubtedly, "simpler" does not always mean "better." Therefore, it is essential to consider your situation separately and get advice from an attorney who will clarify the possibility and appropriateness of using such a form in your case.
If you trust the other party to the transaction and decide to use this form, then make sure that everything is done according to the rules and the laws of New York.