A California quitclaim deed allows a property owner (the grantor or seller) to transfer ownership or interest in a property to another party (the grantee or buyer) without the need for a title search, other discovery, or providing a warranty. In California, quitclaim deeds are often used to transfer property between family members, add or remove a spouse, change the status of a jointly owned property, or transfer real property into a living trust.
Statute: California has no specific language requirements for a quitclaim deed. Use words like “quit claim” rather than “grant” or “sell” when creating your deed. The term “grant” implies a warranty of title and quitclaim deeds do not provide any guarantees of warranty.
Signing Requirements: Per Cal. Gov. Code § 27287, California quitclaim deeds must be notarized. The grantor (seller) must sign in the presence of the notary. The deed doesn’t need to be witnessed.
Recording Requirements: Once signed, all forms are filed with the County Recorder’s Office in the county where the property is located, along with the correct transfer tax amount.
Transfer Tax: Yes. Per Cal. Rev. & Tax. Code §§ 11911-11913, counties or cities charge a documentary transfer tax on any document indicating a real estate transfer. But there are instances where a transfer tax is exempt such as gifts, inheritances, transfers between spouses where no money is exchanged, transfers in divorce or legal separation, transfers in business reorganization, or writings to secure a debt.
Additional Documents: Form BOE-502-A, a Preliminary Change of Ownership Report (PCOR) form, must be filed along with the quitclaim deed in the county where the property is located.
This form must be signed by the grantee. In addition, some counties may require a Documentary of Transfer Tax (also known as a Transfer Tax Affidavit) or a Notice of Exempt Transaction.
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The time it takes to record a quitclaim deed in California can vary significantly depending on various factors, including the specific processes, procedures, and the population of each county. To provide a general idea, for instance, Orange County typically takes approximately two to three weeks to complete the recording of a deed.
Quitclaim deeds in California do not have a predefined expiration date. However, it’s essential to be aware of the statute of limitations when dealing with such deeds, which is 4 years in California. This means that anyone wishing to dispute the validity of the deed has a maximum of 4 years to do so from the date it was recorded.
When getting a divorce in California and transferring property between spouses, it’s better to use an Interspousal Transfer Deed than a Quitclaim Deed.
The Interspousal Transfer Deed doesn’t trigger a reassessment of the property’s value for tax purposes. This means you won’t face higher property taxes just because you’re transferring the property to your spouse during the divorce. It’s especially useful if your home’s value has gone up a lot over the years, and you can avoid unexpected tax increases.