How Much Does a Quit Claim Deed Cost?
A quit claim deed is a legal document where a real estate property can be transferred, usually with no question about ownership such as between family members. The document does not provide a guarantee that the property being transferred is free of debt. Normally, the liens are transferred along with the deed itself. In essence, it removes a party’s ownership of and interest in a property and passes the rights to a family member, ex-spouse or in estate plans.
How much does it cost?
- On average, using a lawyer to file a quit claim deed is going to cost anywhere from as little as $400 to more than $1,000. The costs will depend on the complexity, geographical location and the lawyer you’re using. Doing it on your own, however, can cost you as little as $50 to $250.
- According to a contributing attorney at AttorneyPages.com, an attorney directory that lists lawyers and law firms nationwide, hiring a lawyer to draft a quit claim deed can cost $700.
What is going to be included?
- When a quitclaim deed is signed, the property owner gives up his or her claim on the property. It is a common instrument used to transfer title as a gift, add a family member as a co-owner, or remove the name of an ex-spouse from the title. In a nutshell, a local attorney can draft the quit claim deed, get it recorded, and make sure the client understands the consequences of the action. Depending on the state where the document is filed, a quit claim deed may be completed and filed in a single day. An individual who is exempt from taxes for any reason should fill out the proper form and attach it to the quitclaim deed. For those who fill out the deed by themselves, they will need to sign it before a notary public and file it in the county recorder’s office.
What are the extra costs?
- Extra costs required in filing a quit claim deed include recording fees and transfer tax. The transfer tax can be calculated by referring to the county recorder’s office.
Tips to know:
- It is highly recommended that a person first consults with an attorney before he or she files any legal document especially in cases where there he or she has no full understanding of the outcome of the deed.
- Once signed, a quitclaim deed does not make a property owner (or the deed maker) liable if title problems occur afterward.
- Using a quitclaim deed is often a means to keep it from undergoing probate. When the deed is final, the effect is that the cost basis of the property owner becomes the cost basis of the person to whom the property is given. Put simply, the cost basis is not affected.
- Legal professionals recommend filing a quitclaim deed with the help of a lawyer, rather than finding a quit claim deed on the Internet. This is to ensure validity and compliance with the law. This is also to avoid problems with the title on the property that may lead to litigation.
- In some states, quit claim deeds are commonly used for more informal transactions where there is a higher level of trust between parties.
How can I save money?
- Find the best rates for filing a quit claim deed by asking lawyers in your area. Or, ask family and friends for any lawyer they can recommend. The legal vehicle must be valid and must comply with the law in order to avoid problems in the future, which can amount to thousands. If you don’t know where to start when it comes to finding a lawyer, you can find one for free via LegalMatch.
- Consider doing the job on your own. This can be done for as a little as $250 on services online such as LegalZoom.
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