Quitclaim deeds can be used to convey ownership rights between parties with no warranty from the seller to the buyer. Often, this type of deed will be used to add or remove someone from the title to the property. After a marriage or divorce, a quitclaim deed can be prepared to ensure the correct owners are on record. Once the deed is signed, it should be filed on record in the proper county. Each state has adopted a set of recording requirements that a deed must meet before it can be filed on record.
TL;DR (Too Long; Didn't Read)
Some of the most fundamental requirements to successfully prepare a quitclaim deed include the grantor and grantee's full names, the mailing address of the grantor, the name and address of the individual responsible for preparing the document, and the contact information for the individual responsible for property taxes.
Exploring Required Information
The grantor and grantee’s proper names should be clearly stated, generally on page one, of the deed. It is important to spell the names correctly. The grantor’s name should be listed exactly the same way they are currently listed on the title. The mailing address of the grantor must also be listed. Tennessee requires the name and address of the person who prepared the document to be stated. Finally, a contact name and address for the person who will be responsible for paying property taxes must be disclosed.
Evaluating the Legal Description
All deeds submitted for recording in Tennessee must include a complete legal description of the property. This is a description of the size of the property and any significant markers for measurements. Legal descriptions also include any easements or right-of-ways acquired by utility companies or public roadways. The address and parcel number of the property should be listed with the legal description as well. A derivation clause is also required. This clause states information from the deed in which the grantor acquired the property.
Important Tax Implications
Often times a quitclaim deed will list a non-valuable consideration of $1.00 or $10.00 because the transfer is between related parties, and no true sale took place. However, some quitclaim deeds will list a consideration and it could be considered taxable. If the transfer does not meet an exemption, an affidavit of value must be signed and notarized and included with the deed at the time of recording. The affidavit states the value for taxing purposes. Regarding quitclaim deeds, they can be exempt when it is a transfer between spouses, a divorce decree or transfers listing a consideration less than $50.00.
Collecting Original Signatures
All signatures on Tennessee quitclaim deeds must be original. No copies will be accepted for recording. Generally, only the grantor is required to sign a quitclaim deed because he is granting his ownership rights. The signatures should be acknowledged and notarized by a certified notary public. The stamp or seal of the notary needs to be included on the deed. No additional witnesses are required for recording a Tennessee quitclaim deed.