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Using A Quitclaim Deed To Add Spouse To House Deed In Georgia

Quitclaim Deed To Add Spouse To House Deed In Georgia

Wondering about using a quit claim deed to add a spouse to a house deed in Georgia? 

In this article, you’ll learn about:

  • what a quit claim deed does
  • why people use it to add a spouse to a house deed
  • pros and cons
  • tax implications to look out for
  • when to use a QCD
  • how it can avoid probate in Georgia
  • how to get a QCD
  • how to avoid illegal QCDs
  • legal consequences of using a quit claim deed

Let’s dig in.

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What Is A Quit Claim Deed In Georgia?

A quitclaim deed in Georgia is a simple way to transfer ownership of a property.

It allows you to transfer property to someone else or a living trust in Georgia. 

A quit claim deed does not make any guarantees about the property’s title.

Imagine you own a house, and you want to add your spouse to the ownership. 

A quitclaim deed transfers part of your ownership interest to your spouse. 

By signing the quitclaim deed, you’re essentially saying:

“I’m giving you whatever ownership interest I have in this house, but I’m not making any promises that there are no issues with the title or other claims on the property.”

In Georgia, a quitclaim deed must include:

  • The name of the person giving (grantor)
  • The name of the person receiving (grantee) the property interest
  • A legal description of the property being transferred
  • The reason for the transfer or amount exchanged, if any (consideration)

The quitclaim deed must be:

  • signed by the grantor
  • notarized
  • filed with the county clerk’s office where the property is located

Some common uses for quitclaim deeds include:

  • Transferring Property Between Family Members: Quitclaim deeds are often used to transfer property within a family, such as from parents to children, between siblings, or between other close relatives.
  • Adding Or Removing A Spouse From A Property Title: In cases of marriage, divorce, or other changes in marital status, quitclaim deeds can be used to add or remove a spouse from a property title.
  • Clearing Up Title Issues: If there is a cloud on the title, such as a name discrepancy, quitclaim deeds can be used to correct the issue and clarify the property’s ownership.
  • Transferring Property Into Or Out Of A Trust: Quitclaim deeds can be utilized to transfer property into a living trust or remove it from the trust for estate planning purposes.
  • Gifting Property: When someone wants to gift a property to a friend or family member without warranties, a quitclaim deed is often used to complete the transaction.
  • Transferring Ownership In A Business Context: When business partners want to transfer their interest in a property to other partners or the company itself, quitclaim deeds can simplify the process.

Quitclaim deeds don’t guarantee that there are no:

Why Use A Quit Claim Deed To Add Spouse To Title In Georgia

Thinking of using a quitclaim deed to add a spouse to a property title in Georgia?

QCDs ensure shared ownership of the property between spouses in a way that’s:

  • simple
  • quick
  • cost-effective

Here are why people use a quit claim deed to add spouses to a title in Georgia.

  • Simplicity: A quitclaim deed is a straightforward document that is easy to understand and complete. It requires only basic information about the grantor, the grantee, and the property being transferred.
  • Cost-Effective: Using a quitclaim deed to add a spouse to a property title is usually less expensive than other property transfer methods, as it involves fewer legal fees and associated costs.
  • Speed: Quitclaim deeds can be executed and filed quickly, making them an ideal choice when you want to transfer property ownership promptly.
  • Trust: Quitclaim deeds are suitable when the parties involved trust each other, as is the case with spouses. Since there are no guarantees provided about the property’s title, it’s essential that both parties trust each other and have confidence in the property’s history.

Pros And Cons Of Adding Spouse To Deed

Here are some pros to adding a spouse to a house deed in Georgia:

  1. Shared Ownership: By adding your spouse to the deed, you ensure that both of you have legal ownership of the property. This can provide a sense of security and shared responsibility.
  2. Avoiding Probate: When a property is jointly owned by spouses, it can help avoid probate when one spouse passes away. The property can transfer directly to the surviving spouse without going through the time-consuming and costly probate process.
  3. Estate Planning: Adding a spouse to the deed can simplify estate planning, as the property will automatically transfer to the surviving spouse upon the death of the other spouse.

Here are some cons to adding a spouse to a house deed in Georgia:

  1. Shared Liability: By adding your spouse to the deed, you also share any liabilities associated with the property, such as mortgage payments, property taxes, and maintenance costs. This could create financial stress if one spouse cannot contribute equally.
  2. Impact On Refinancing Or Selling: When both spouses are on the deed, both parties must agree to refinance or sell the property. This could create complications if one spouse does not want to sell or refinance.
  3. Exposure To Creditors: Adding your spouse to the deed could expose the property to their existing or future creditors. If your spouse has significant debt or faces a lawsuit, the property might be at risk.

Tax Implications Of Adding Spouse To Deed

Here are some tax implications when adding a spouse to a property deed:

  1. Gift Tax: When adding a spouse to the deed, it may be considered a gift. The IRS allows a yearly exclusion for gifts between spouses, which means that up to a certain amount, there will be no gift tax implications. But, if the value of the property interest being transferred exceeds this exclusion, you may need to file a gift tax return. 
  2. Capital Gains Tax: When you add your spouse to the deed, it may affect the cost basis for calculating capital gains tax when you sell the property in the future. This could lead to higher capital gains taxes if the property has appreciated significantly since the original purchase.
  3. Property Tax: Adding a spouse to the deed typically does not affect property taxes, as most jurisdictions do not reassess the property value when ownership changes between spouses. 

When To Use A Quit Claim Deed To Add A Spouse To The House Deed

A quitclaim deed can be used to add a spouse to the house deed in various situations. 

Here is when you can use a quitclaim deed to add a spouse to the house deed:

  • After Marriage: Let’s say you purchased a property before getting married and now want to include your spouse as a co-owner. A quitclaim deed can be an efficient way to transfer a portion of your ownership interest in the property to your spouse.
  • Refinancing: When refinancing a mortgage, some lenders may require both spouses to be on the property deed to qualify for the loan. A quitclaim deed can be a straightforward way to add your spouse to the house deed before applying for refinancing.
  • Estate Planning: As part of your estate planning strategy, you might want to ensure that your spouse automatically inherits the property without going through probate. Adding your spouse to the deed via a quitclaim deed can establish joint ownership. This allows for an easier transfer of the property when either of you passes away.
  • Divorce Or Separation: Let’s say a couple is going through a divorce or separation and has agreed to transfer full ownership of the property to one spouse. A quitclaim deed can be used to remove one spouse’s name from the deed, leaving the other as the sole owner.

Adding A Spouse To A Deed For Estate Planning

Adding a spouse to a property deed can be an essential step in estate planning.

It ensures that your spouse inherits the home smoothly and without complications. 

By adding your spouse’s name to the deed, you create joint ownership of the property. 

This allows for an automatic transfer of ownership rights to the surviving spouse upon your death. 

This process is known as the “right of survivorship.” 

And it helps to bypass the time-consuming and costly probate process. 

Your spouse can remain in the family home without legal obstacles or delays.

Read More: Does A Spouse Have The Right To Property After Signing A Quit Claim Deed? 

How To Do A Quitclaim Deed In Georgia

To do a quitclaim deed in Georgia, you can follow these steps:

  • Obtain The Appropriate Quitclaim Deed Form. You can find a template online or at a local office supply store. Make sure it complies with Georgia state law.
  • Fill In The Required Information. This includes the names of the grantor (person giving up ownership rights) and grantee (person receiving ownership rights), the property’s legal description, and any other required information.
  • Sign And Notarize The Deed. Both the grantor and a notary public must sign the deed.
  • Record The Deed With The County Clerk’s Office. The deed must be filed with the county clerk’s office in the county where the property is located. There will be a filing fee, which varies by county.

How Long Does A Quit Claim Deed Take To Process

It can take a few days to a month for a quit claim deed to process. 

The time it takes to process a quitclaim deed depends on a few factors:

  • preparing the deed
  • signing and notarizing it
  • recording it with the county recorder’s office

Preparing the deed may take a few hours to a couple of days. 

Signing and notarizing the deed can typically be done within a day. 

The most time-consuming part is often recording the deed.

This can take between a few days to a few weeks, depending on their processing times. 

The entire quitclaim deed process can take anywhere from a few days to a month.

But it’s generally faster than other property transfer methods.

How To Avoid An Illegal Quitclaim Deed

You’re adding your spouse to the house deed in Georgia using a quitclaim deed. 

It’s crucial to ensure the process is legal and avoids any potential issues. 

Our attorneys can help you draft a valid and legally binding quitclaim deed.

We will ensure that all the necessary information is accurate, such as:

  • the grantor and grantee’s names
  • the property’s legal description
  • the consideration

You have to sign your quit claim deed in front of a notary (we handle this for you).

The notary will verify your identity and notarize the document. 

Then, you have to file the QCD with the appropriate county recorder’s office.

Our attorneys will ensure that you:

  • avoid any illegal quitclaim deed issues 
  • successfully add your spouse to the house deed in Georgia

Consequences Of Using A Quit Claim Deed To Add Spouse

There are several potential consequences of adding a spouse to a house deed.

Some of which are positive and others that may involve risks. 

Here’s a summary of some potential consequences:

Positive Consequences

  1. Shared Ownership: Adding your spouse to the deed ensures both of you have legal ownership of the property. This can provide a sense of security and shared responsibility.
  2. Estate Planning: Adding a spouse to the deed simplifies estate planning. The property can automatically transfer to the surviving spouse upon the death of the other spouse, without the need for probate.
  3. Easier Decision-Making: Joint ownership can make it easier for couples to make decisions about the property together. These are things like refinancing, selling, or making significant improvements.

Potential Risks And Negative Consequences

  1. Shared Liability: By adding your spouse to the house deed in Georgia, both of you share any liabilities associated with the property, such as mortgage payments, property taxes, and maintenance costs. 
  2. Exposure To Creditors: Adding your spouse to the house deed in Georgia could expose the property to their existing or future creditors. If your spouse has significant debt or faces a lawsuit, the property might be at risk.
  3. Impact On Refinancing Or Selling: When both spouses are on the property deed, both parties must agree to refinance or sell the property. This could create complications if one spouse does not want to sell or refinance.
  4. Loss Of Control: Once your spouse is on the deed, you no longer have full control over the property. Any major decisions about the property, such as selling or refinancing, will require the consent of both spouses.
  5. Potential Tax Implications: Adding a spouse to the deed could have gift tax implications if the value of the property interest being transferred exceeds the annual gift tax exclusion. And it may affect the cost basis for calculating capital gains tax when you sell the property in the future.

FAQs About A Quitclaim Deed To Add Spouse To House Deed In Georgia

Here are questions our clients ask us about adding a spouse to a deed with a quit claim deed. 

How Much Does It Cost To Add Spouse To Deed?

The cost to add a name to a deed ranges between $750-$1,500. 

Things that affect this are:

  • attorney fees
  • notary fees
  • filing fees

Does A Spouse Have The Right To Property After Signing A Quit Claim Deed?

Let’s say a spouse signs a quit claim deed relinquishing their ownership rights to a property.

They generally no longer have any legal claim to the property.

(Unless there is a separate agreement that specifies otherwise.)

What Happens When You Have Quit Claim Deed, But You’re Still On Mortgage?

Here’s a breakdown of what this situation entails:

  • Mortgage Responsibility: Despite transferring your ownership interest, your name remains on the mortgage loan. This means you are still legally responsible for the mortgage payments, even though you no longer own the property.
  • Credit Impact: Since you are still on the mortgage, your credit score can be affected if the mortgage payments are not made on time or if the loan goes into default. This is true even if you have an agreement with the grantee to make the payments.
  • Removing Your Name From The Mortgage: To remove your name from the mortgage, you may need to refinance the loan in the grantee’s name or have them assume the mortgage if the loan terms allow for it. The grantee will need to qualify for a new loan based on their credit history and income.

What Are My Rights If My Name Is On A Deed But Not The Mortgage?

If your name is on the deed but not the mortgage, you have legal ownership of the property.

But you’re not responsible for mortgage payments. 

You can use, occupy, rent, or sell the property but are not liable for the mortgage debt. 

But, let’s say the mortgage holder fails to make payments.

The property may be at risk of foreclosure, affecting your ownership. 

You can participate in property decisions.

But changes to the mortgage require the mortgage holder’s involvement.

Do I Need A Lawyer To Add A Name To A Deed?

It is not legally required to hire a lawyer to add a name to a deed. 

However, it can be a complex legal process.

And there are potential risks and consequences if it is not done correctly. 

A lawyer can help ensure that:

  • the transfer is done legally
  • your interests are protected

They can also advise you on any tax implications or other legal issues that may arise from the transfer.

Get Your Spouse Added To The House Deed

If you want add your spouse to your house deed, 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 per the O.C.G.A.

This allows you to avoid any mishaps with the ownership of your property.

Talk soon.

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We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

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