Are you thinking about getting a Georgia quit claim deed?
In this article, you’re going to learn about:
- important laws you should know about
- how to write a quit claim deed
- what a quit claim deed is
- the Georgia quit claim deed requirements
- what you can do with a quit claim deed
So, let’s dig right in.
Table of Contents
- What Is A Georgia Quit Claim Deed?
- What Is The Purpose Of A Quit Claim Deed In Georgia?
- 7 Useful Things You Can Do With A Quit Claim Deed Georgia
- Important Georgia Quit Claim Deed Laws You Need To Know About
- How To Get A Reliable Georgia Quitclaim Deed
What Is A Georgia Quit Claim Deed?
First, let’s talk about what is a Georgia quit claim deed.
A quit claim deed in Georgia is the fastest way to transfer your interests in a property to a buyer.
When you quitclaim property, you are quitting your claim to that property.
Basically, you are relinquishing your claim to the property.
It’s important to note that Georgia quit claim deeds offer zero protection for the buyer.
With a quit claim deed in Georgia, the seller is called the ‘grantor’ and the buyer is called a ‘grantee.’
Quit claim deeds in Georgia are also known as non-warranty deeds.
When a property is quit claimed, there are no warranties or promises on the quality of the title.
This means that a quit claim deed in Georgia does NOT guarantee that:
- the grantor is the owner of the property
- the grantor has the legal right to transfer ownership
- there are no liens on the property
- there are no claims to the property (someone else has partial ownership)
- there are no encumbrances (improper zoning, easements, etc)
What Is The Purpose Of A Quit Claim Deed In Georgia?
Georgia quitclaim deeds are often used to fix defective titles in real estate.
A defective title is one that has a:
- lien on the property
- other claims on the property
Defective titles are considered “unmarketable.”
This means that they cannot be transferred or sold.
The title must be cleared before the owner of the property can sell it.
You can use a quitclaim deed in Georgia if you have defects on the title, such as:
- issues with wording
- missing signatures
- unproperly filed real state documents
Now we know what the purpose of a Georgia quit claim deed is.
Let’s talk about the 7 useful things that you can do with a quit claim deed in Georgia.
(This is not an all-inclusive list.
But these are the most common things that we build quit claim deeds for in Georgia.)
7 Useful Things You Can Do With A Quit Claim Deed Georgia
You’re probably wondering what you can even do with a Georgia quit claim deed.
And if you do use a quit claim deed in Georgia:
- what are the repercussions
- are there better options
- what to look out for
We’re going to go into all of that with these 7 useful things you can do with a Georgia quit claim deed.
1. Remove A Spouse From Title
Georgia quitclaim deeds will remove your spouse from the property title.
But it will not remove your spouse from the mortgage.
A spouse’s name can only get removed from the mortgage through:
- a refinance
- paying off the mortgage
- selling the property
Filing for divorce is a good reason to file a quitclaim deed in Georgia.
If you are using a quitclaim deed in Georgia to transfer the property, here’s how to set it up.
Both of you will be the grantors, but only the person receiving the property will be the grantee.
Let’s say John and Alice are filing for divorce in Georgia.
John is going to take equity from other assets and let Alice have the house.
Alice and John would both be the grantors since they both have interests in the property.
But only Alice would be the grantee since she is receiving John’s half of the house, giving her 100% ownership.
Now that one spouse has full ownership of the property, the other spouse needs to get taken off the mortgage.
I’m assuming you aren’t going to pay the house off or sell it.
So you only have two options to remove the spouse from the loan.
Those two options are:
- refinance the spouse’s name off the loan
- show your lender the Georgia quitclaim deed and have them release the other spouse from the loan
Removing the spouse from the loan protects the spouse and their credit score.
Especially in the event that the spouse with ownership misses payments.
But there are also benefits to the person keeping the house.
If both spouses are on title for the property, both must agree to sell the property or include it in a will.
This allows them to sell the property or will it to a relative without consent or approval from their ex.
2. Transfer Property To Family Members
You might be wondering if a Georgia quitclaim deed is a good way to pass property to family members.
These quitclaim deeds are a good way to transfer ownership to family members.
For example, parents can quitclaim their house to the children as the parents get older.
This gives the children ownership.
And the parents are still responsible for the mortgage.
There are tax implications you need to know about for quit claiming property to your family members.
Let’s assume you are transferring your property to your children via a quitclaim deed in Georgia.
They would be subject to a “carryover basis” vs “step-up basis.”
Carry Over Basis vs. Step-Up Basis
You can gift your house to your child while you’re still alive using a quitclaim deed.
When you do this, they will receive the house on the same cost basis that you purchased it at.
Let’s say you paid $200,000 for it 35 years ago.
If they sell your house for $800,000, they would pay capital gains taxes on $600,000.
$800,000 – $200,000 = $600,000 profit
But if your children inherit your house when you pass, they benefit from a step-up basis.
Let’s assume the house is worth $750,000 when you die.
This is the new cost basis for them, which is called a step-up basis.
Let’s say they inherit the house at $750,000 and sell it at $800,000.
They would only pay capital gains taxes on the $50,000 difference.
In this case, it’s better to let your children inherit the property instead of quit claiming it to them.
So why can’t you just gift the house to your kids to bypass probate?
If you are gifting something to a family member, you can only give a certain amount each year.
The gift limits per year are $15,000 per receiving person.
Let’s say that you are married with three children and you want to gift them each $15,000 per year.
You and your spouse can EACH gift every child $15,000.
|Your Contribution||Spouse’s Contribution||Total|
|Total Annual Gift Amount||$90,000|
In this example, you and your spouse can make a total gift amount of $90,000 to your three children tax-free each year.
These gift amounts can be in the form of property or cash.
Any gifts larger than the $15,000 limit will be taxed at 40%.
The person gifting the money (that’s you) is the person who has to pay those taxes.
3. Transfer Property Between Spouses
I know we have already discussed using quitclaim deeds in Georgia for a divorce.
But what if you’re getting married?
You may want to add your spouse to the property deed when you get married.
Or you may only have gotten a mortgage in one name, but want to add your spouse to the title.
This is common for spouses who:
- are real estate investors who only get rental mortgages in one name, but want both spouses on the title
- only put one spouse’s name on the mortgage due to credit concerns with the other spouse
A quitclaim deed is an easy way to just add a spouse to the title of the property.
When you quitclaim a property deed to add a spouse, you are not “quitting your claim” to the property.
In this case, you are simply amending the title.
Note that quitclaim deeding them onto the title gives them rights to the property.
But there are two types of rights that they can receive.
It depends on what rights you give them when you quitclaim deed them onto the title.
The two types of rights are:
- tenants in common (they get 50% rights)
- joint tenancy with right of survivorship (they have equal rights)
You might be worried about the whole ordeal of the separate property becoming marital property.
If you spend even ONE SINGLE DOLLAR on that separate property via marital funds, it is now marital property.
If you do this, they will have a claim to it regardless in a divorce.
Most likely, you will want both spouses to be on the title.
In the event that one spouse dies, the other person gets full ownership of the property without it passing through probate.
But note that this is only true if you set up the title with a joint tenancy with the right of survivorship.
Fill out the form on this page to have our attorneys set this up for you.
4. Removing Defects From Title
Quitclaim deeds in Georiga are useful when trying to clear out clouds on title.
The types of liens that can cloud a title are:
- tax liens
- mechanic’s liens
- judgment liens
A lien is a claim or legal right that someone has on your property.
A lien allows someone you owe money to to be able to seize the property if you don’t pay them back.
Liens get used as collateral to satisfy debts.
When you have not paid property taxes, the property tax assessor will place a tax lien on your house.
This means that if you go to sell your house, the proceeds from the sale of the house will pay off these tax liens.
If you pay off your tax liens, you may need to have the tax assessor release the tax liens from your property.
Usually, they will automatically remove the liens within 30-60 days after you pay off your taxes.
If you need it done sooner, you can have your attorney file a Request for Lien Release.
This will speed up your tax lien release.
A mechanics lien is a legal claim for unpaid construction work.
A contractor can file a mechanic’s lien to gain a security interest in the property.
Even if you pay the general contractor for the work done, you can still have a mechanic’s lien on the house.
If the general contractor doesn’t pay a subcontractor or supplier, they can place a mechanic’s lien on your property.
Judgment liens are court rulings that give creditors a right to take possession of your property.
If you don’t pay off a creditor and they have a judgment lien, they can get paid when you sell your house.
The real estate attorney will pay the creditor off with the proceeds from the sale.
5. Changing Owner Names On Property
When filling out a Georgia quitclaim deed form to change a name on a property, you need to include:
- the property’s legal description
- the county the property is located in
- the date of transfer
- the name of the grantor
- the name of the grantee
Usually, quitclaim deeds are used to change the owner’s name on title.
This could be in the event of a name change during, say, a marriage.
In this case, the owner would be the grantor and the grantee.
6. Transfer Ownership To A Trust
When you are estate planning, you may need to transfer property to a trust.
These trusts will hold your assets for your family.
In this example, you would be the grantor and the trust would be the grantee.
You can quitclaim property into a trust.
You would be quitting your claim on the property and the trust would assume claim to it.
Some people worry that quit claiming property will trigger a due on sale clause.
But federal law does not allow lenders to “call the loan” when you quit claim it into a trust.
7. Transferring Ownership To An LLC Or Corporation
A quitclaim deed in Georgia is commonly used by people who own rental properties.
Investors will get a loan in their personal names.
Then, they will transfer their personal interests in the property to their LLC.
When you quitclaim deed property to an LLC, it does not transfer the loan to the LLC.
Note that transferring title into an LLC MAY trigger the due on sale clause.
This means that the lender may require you to pay the remaining balance on the mortgage in full.
You can transfer the title on other business-related property as well.
Some examples would be business equipment or vehicles that you had to get personal loans on to purchase.
Important Georgia Quit Claim Deed Laws You Need To Know About
It’s important that you follow the quitclaim deed laws.
This makes sure that your quitclaim deed is legitimate.
We can walk you through these applicable quitclaim deed laws.
Georgia Real Estate Transfer Tax
Some websites mention that if you quitclaim a property, then you have to pay a real estate transfer tax.
You only have to pay a real estate transfer tax if you sell the property.
You can, but you should not be selling a property via a quitclaim deed.
When you sell a property, you have to pay 0.10% of the sales price ($1 for every $1,000).
For example, if you sell a house for $300,000, you’ll owe $300 in Georgia real estate transfer taxes.
If you are just transferring the property to a spouse or family member (and not selling the property), you won’t owe these taxes.
Witnesses and Notaries
A quitclaim deed in Georgia needs to be signed by:
- the grantor
- the grantee
- a witness
- a notary
When you get a quitclaim deed with us, we provide witnesses and notaries for you.
Fill out the form on this page to get your quitclaim deed.
How To Get A Reliable Georgia Quitclaim Deed
If you want a bulletproof quitclaim deed in Georgia, fill out the form below.
Our attorneys are able to provide the most reliable quitclaim deeds in Georgia.
We know the ins and outs and little nuances that can cause you trouble.
This allows you to avoid any mishaps with the ownership of your property.