Changes to Title and the Quitclaim Deed

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Ownership of real property (i.e. land) is a big deal. Changing ownership of a house or condo is a complicated process, made worse by all the legalese. Keep reading to get a better understanding of title and how a quitclaim deed (or QCD) is used to change it.

A Quitclaim Deed Conveys Title

“Title” is the fancy legal term for ownership. When you transfer ownership, you “convey title.” If you make someone a co-owner, you “add them to title.”

A “deed” is the legal document that conveys title to real property. There are different types of deeds. They range from the warranty deed (the most protection for a buyer) to the quitclaim deed (the least). In a market sale, title is conveyed by warranty deed. For gifts, family transfers, or simple changes, title is conveyed by quitclaim deed.

When to Use a QCD.

An owner may want to share ownership with a new co-owner, for many reasons.

  • Add a Spouse. If you purchase a home, and then get married, you may want to make your new spouse an owner too (you’d better!). To do so, you sign a quitclaim deed conveying the property from you, to both you and your new spouse as a married couple. This adds your spouse to title and creates community property.

  • Buy-out of Co-Owner. It is not uncommon for an unmarried couple, or even friends, to buy a house together (they own as tenants in common). Eventually, one co-owner may want to buy out the other (relationships do end, unfortunately).

  • Gift. A gift of real estate, particularly between family members, is common.

  • Transfer to Trust or LLC. Ownership may be transferred into a family trust (for estate planning or tax reasons) or an LLC (for liability protection).

  • Co-Signor on Loan. Someone else (thanks Mom and Dad!) may be added to title for purposes of co-signing on a purchase loan, and taken off title when the loan is repaid in full.

In these and many other situations, a quitclaim deed is used to convey title and change the ownership of real estate.

Not a Quick Claim Deed.

There is no such thing as a quick claim deed. Nor is there a quit claim deed. The law defines it as one word: quitclaim. But these other terms (particularly quickclaim deed) are often used by non-lawyers. The process can be quick, but it isn’t a quickclaim deed. It is a quitclaim deed, or QCD.

In WA, a QCD Incurs an Excise Tax

An “excise tax” is a tax due upon sale (more legalese!). In Washington, an excise tax is due when title is conveyed. It is based on the sale price or the assessed value, whichever is greater. So to record a deed, you must complete a Real Estate Excise Tax Affidavit (or REETA).

There are many exemptions to the excise tax. But completing the REETA is far from easy. And wihtout a correct REETA, you cannot record the quitclaim deed.

I can help for a reasonable flat fee.

If you need a quitclaim deed, I can assist. I draft the deed and the REETA for a flat fee of a few hundred bucks, plus a couple hundred bucks in recording costs. Contact me to learn more.

A quit claim deed will convey title of this beauty!

A quitclaim deed will convey title to this this beauty!