Should I do a Quit Claim Deed or a Warranty Deed?
This is a very common question from many customers calling wanting to transfer title .
A quit-claim deed conveys all of your interest in property, but it does not guarantee to the grantee that you have the right to convey the property and that the grantee will actually acquire good and marketable title. On the other hand, a warranty deed comes with your assurances to the grantee that you have the right to convey the property and that the grantee will be getting good and marketable title. There are important implications when you use a quit-claim deed. Most importantly is that the grantee loses the benefit of any Owner’s Title Insurance that you may have had, which may be important when the grantee sells the property in the future. For example, it may serve to clear title issues related to unpaid judgments and liens of persons with names similar to you as grantor. A Warranty Deed involves more legal preparation time, so costs more.
Deed Preparation Fees
Quit Claim Deed $350 order here Turnaround time is 5-7 business days to have document read
Warranty Deed $500 Please call 305-271-0100 for more information
Frequently asked questions and answers about Quit Claim Deeds
What is a Quit Claim Deed? An instrument of conveyance commonly known as a “title transfer” of real property that passes any title, claim, or interest that the grantor has in the premises but does not make any representations as to the validity of such title.
What if there is a mortgage on the property? The quit claim deed will not remove the mortgage lien from the property. The original mortgage holders are still responsible for the debt and will not be released from that debt. The new owner of the property will still have the mortgage and can be foreclosed on if the debt is not paid.
Will I have to pay documentary taxes for recording the deed? The payment of documentary taxes is governed by Florida Statute 201.01,201.02 and other statutes. Generally documentary taxes have to be paid equal to 70 cents (60 cents in Miami Dade County) for each $100 of the consideration paid for the transfer. In case of the transfer of property without consideration, documentary taxes may have to be paid based on the value of any mortgages existing on the property. The Closing Company does not provide general or legal advice about the amount of taxes that have to be paid at time of transfer and directs you to your legal counsel for advice on this matter.
Who will need to sign the Quit Claim Deed? The only person(s) that need to sign the Quit Claim Deed are the people being removed from title. Whoever you specify as being the current title holder are the only parties that are required to sign.
Do the new owners receiving title need to sign the Quit Claim Deed? No, they do not. However, the new owners do need to be available to sign a Document Disclaimer for our records to acknowledge the document. However, they will have to sign our disclaimers.
Will my property taxes go up? We don’t make any representations about property taxes. Please consult the property tax appraiser in your county for more information.
Does a Quit Claim Deed provide any guarantees or assurances? No, it does not. A title search will not be done. A Quit Claim Deed only says to the new owner that if the signer has any interest in the property being transferred, they pass their interest to the owner. Only a Warranty Deed or title insured transaction provides assurance of ownership.
How will I know if the property has any liens, judgments, survey issues or other problems? You won’t know. Since we won’t be conducting a title search or providing title insurance to verify ownership and using only the information the person ordering the document is providing, you won’t know anything about the title condition or if any title defects exist.
How do I know if taxes are paid before I take title? You need to check the tax records of the municipality before taking title if that is a concern. We do not verify taxes.
Do I need notify the Condominium Association or Homeowner Association about the transfer? Yes, you will need to contact them in advance and ask how this process works for the new owner. We do not provide assistance with this.
How will I know if any Condo/HOA fees are past due before I take title? You will need to contact Condo/HOA Association and request that information directly from them.
Does the document need to be notarized? Yes, it will need to be notarized by U.S. Notary and witnessed by two people (one of the two witness can be the notary). Foreign notaries are not accepted.
What are the tax implications of a Quit Claim Deed? Both the old and new owners need to consult with a tax advisor or CPA before taking title. We do not provide tax or legal advice on the execution of this document.
Will my Owners Title Insurance Policy when I purchased the policy still be valid? Depends on who is giving and receiving title. If any of the owners are staying on title, their beneficial interest will be protected.
