Warranty Deed Vs Quitclaim Deed For Property In Riverside
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Quitclaim deeds themselves are not directly reported to the IRS. However, the transfer of property using a quitclaim deed can have tax implications that may need to be reported, depending on the specifics of the transaction.
Transfer property between family members Quitclaim deeds are most commonly used between family members or people who trust each other, since there is a level of risk when you don't know all the details about the property. Think of a quitclaim deed as a transaction without a verification for what you've purchased.
Quitclaim deeds are typically used to transfer property in non-sale situations, such as transfers of property between family members.
Common uses – Typically, quitclaim deeds are used for lower-risk transfers between related parties. In contrast, warranty deeds are used for real estate sales and high-value transactions involving unrelated grantees. Grantee risks – With a quitclaim deed, all risks remain with the grantee.
Transferring property between spouses during a divorce Many people use quitclaim deeds because it's a quick, affordable solution to settling divorce obligations. A quitclaim deed can be a simple way for one person (referred to as the grantor) to give up their interest in a property to another person (the grantee).
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Ultimately, the main problem with quitclaim deeds is their lack of any guaranty on the part of the person transferring their ownership interest in the property. With a quitclaim deed, the grantor only states that they are transferring any interest they may have in the property–whatever that interest may be.
Using a quitclaim deed could trigger unwanted tax consequences, such as gift taxes or capital gains taxes. Additionally, a quitclaim deed can introduce confusion about who truly owns a property after a transfer, which could lead to disputes later.
Basic Recording Requirements Return Address (GC 27361.6) ... Name(s) of Person(s) Requesting Recording (GC 27361.6) ... Legibility/Photographability (GC 27361.7) ... English Language Translation (GC 27293; AG OPINION 82 – 1209; CC 2923.3) ... Title of Document (GC 27324) ... Names of Party(ies) to be Indexed (GC 27280.5)
If you think a quitclaim deed may be appropriate for you, consult an estate planning attorney. They can draft a quitclaim deed for you transferring ownership of the real property from the grantor (or property owner) to the grantee (person receiving the interest). You should sign the deed in front of a notary public.
