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Like other deeds, quitclaim deeds require payment of all back taxes before the grantee can receive the property. If no money changes hands between the grantor and the grantee, a gift tax applies and you must file a United States Gift and Generation-Skipping Transfer Tax Return Form There is no gift tax when a spouse transfers the deed to the other spouse or when the deed is placed into a trust.

There is a documentary tax in California, but there's an exemption if the transfer was the result of the grantor's death. There are many exemptions to real property transfer taxes, but they have to appear on the quitclaim deed for you to qualify for the exemption.

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You may want to discuss your real estate transfer with your tax adviser. Otherwise, you could be stuck with capital gains taxes if you try to sell the property at a later date, or you could miss some exemptions. A common question is whether a quitclaim deed removes the grantor's name from the mortgage. The rule is that the mortgage does not follow the quitclaim deed. Thus, if you have a mortgage and you transfer your property by quitclaim deed to someone else, you're still responsible for paying the mortgage. This doesn't mean the grantee can't assume the mortgage or refinance, but the grantor and the grantee must work together to resolve this issue.

Otherwise, if you're the grantor, you're still responsible for the mortgage, as it's a debt, which is not transferred by a quitclaim deed.

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If you're not sure whether a quitclaim deed is right for you, or if you want assistance with your deed and other necessary documents, consider hiring an attorney or using an online service provider for your transfer. An offer of membership in our legal plan is not an endorsement or advertisement for any individual attorney. The legal plan is available in most states.

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    History of Your House

    DeLoe, Esq. Attorney, Freelance Writer and Author. Warranty, or Grant, Deeds in California A warranty deed is a type of deed in which the owner guarantees he has good title to the property and that the property is free and clear of liens and other types of encumbrances. Quitclaim Deeds in California A quitclaim deed , unlike a warranty deed, doesn't provide any guarantees that the grantor actually owns the property free and clear.

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