A quitclaim deed is one of the most commonly used legal documents in Florida real estate, yet it is also one of the most misunderstood. Unlike a warranty deed, a quitclaim deed transfers only whatever interest the grantor may have in the property, with no guarantee that the grantor actually owns anything or that the title is free of liens and encumbrances. Despite offering no warranty, quitclaim deeds serve important purposes in Florida property transactions, and using one incorrectly can create title problems that take years and thousands of dollars to resolve.
Florida’s requirements for a valid quitclaim deed are established in Chapter 689 of the Florida Statutes. Meeting these requirements is essential because a defective deed may fail to transfer the intended interest, leaving the grantee without legal ownership and the property’s title clouded.
What are the legal requirements for a Florida quitclaim deed?
Under Florida Statute §689.02, every deed conveying an interest in real property must meet specific formal requirements. A quitclaim deed must be in writing. It must identify the grantor (the person transferring the interest) and the grantee (the person receiving the interest) by their full legal names. It must contain a legal description of the property that is sufficient to identify the specific parcel being transferred. The grantor must sign the deed in the presence of two subscribing witnesses, and the deed should be notarized to be eligible for recording.
While notarization is not technically required for the deed to be valid between the grantor and grantee, a deed must be notarized to be recorded in the county’s official records. Recording is critical because it provides constructive notice to the public that ownership has changed and protects the grantee against subsequent claims by third parties. A quitclaim deed that is signed and delivered but never recorded leaves the grantee vulnerable to competing claims.
The deed must also include the grantor’s marital status. Florida’s homestead laws require the non-owner spouse’s signature on any deed that transfers homestead property, even on a quitclaim deed. Failing to include the spouse’s signature when required can render the deed void as to the homestead interest.
When should you use a quitclaim deed in Florida?
Quitclaim deeds are appropriate in situations where the parties know each other and the transfer does not involve a purchase at fair market value. Common uses include transferring property between spouses during or after marriage, adding or removing a spouse from a deed after a divorce, transferring property from an individual to a trust (or from a trust back to an individual), correcting errors in a previously recorded deed such as misspelled names or incorrect legal descriptions, clearing up title issues by having a person with a potential claim release their interest, and transferring property between family members as a gift.
Quitclaim deeds should generally not be used in arm’s-length purchase transactions where the buyer is paying fair market value. In those situations, a general warranty deed or special warranty deed provides the buyer with legal protections that a quitclaim deed does not offer.
What are the risks of using a quitclaim deed?
The biggest risk is that a quitclaim deed provides no warranty of title. If the grantor does not actually own the property, or if there are undisclosed liens, mortgages, or other encumbrances on the title, the grantee has no legal recourse against the grantor under the deed itself. The grantee receives only whatever interest the grantor had, which could be nothing.
Other risks include potential gift tax consequences when transferring property to a non-spouse. The IRS may treat the transfer as a taxable gift if the value of the interest transferred exceeds the annual gift tax exclusion. Additionally, when property is transferred by quitclaim deed during the grantor’s lifetime rather than passing through inheritance at death, the grantee receives the grantor’s original cost basis rather than a stepped-up basis, which can result in higher capital gains taxes when the property is eventually sold.
Quitclaim deeds can also trigger issues with existing mortgages. Most mortgage agreements contain a due-on-sale clause that allows the lender to demand full repayment of the loan if the property is transferred without the lender’s consent. While federal law under the Garn-St. Germain Act provides exceptions for certain transfers (such as transfers between spouses or to a living trust), other types of quitclaim transfers could trigger the due-on-sale clause and put the property at risk of foreclosure.
Does a quitclaim deed require documentary stamp tax?
Florida imposes a documentary stamp tax on deeds that transfer real property for consideration. The standard rate is $0.70 per $100 of consideration in most counties, with Miami-Dade County imposing an additional surtax. However, many quitclaim deed transfers are exempt from documentary stamp tax because they involve no consideration (no money changes hands). Transfers between spouses, transfers incident to divorce, and transfers to revocable living trusts are typically exempt.
If the quitclaim deed does involve consideration, such as the assumption of a mortgage or payment of money, the documentary stamp tax applies to the full amount of consideration. The county clerk’s office will require payment of the tax before recording the deed.
How do you file a quitclaim deed in Florida?
After the deed is properly executed (signed by the grantor, witnessed by two people, and notarized), it must be delivered to the grantee. The grantee should then record the deed with the clerk of the circuit court in the county where the property is located. Recording fees are set by statute and typically include a base recording fee plus any applicable documentary stamp tax.
The clerk’s office will review the deed for formal compliance before accepting it for recording. Common reasons for rejection include missing witness signatures, missing notarization, an insufficient legal description, failure to include the grantor’s marital status, and failure to pay the required documentary stamp tax or recording fees.
Can you reverse a quitclaim deed?
Once a quitclaim deed is properly executed, delivered, and accepted, it is generally irrevocable. The grantor cannot unilaterally take back the interest that was transferred. To reverse a quitclaim deed, the grantee would need to execute a new deed transferring the interest back to the original grantor, or the original grantor would need to file a lawsuit to set aside the deed based on grounds such as fraud, duress, undue influence, lack of mental capacity, or forgery.
If you are considering executing a quitclaim deed or have received one, consulting with a real estate attorney before recording the deed can help you understand the legal and tax implications and ensure the deed is properly prepared.
Get your quitclaim deed done right
Quitclaim deeds are simple in concept but can create complex problems when used incorrectly. Whether you are transferring property to a family member, moving real estate into a trust, or cleaning up a title issue, making sure the deed meets all of Florida’s formal requirements and does not trigger unintended tax or mortgage consequences is essential.
If you need help with a quitclaim deed or any property transfer in Florida, contact an attorney at Ilabaca Law at (407) 917-2087 to schedule a consultation.
This blog post is for informational purposes only and does not constitute legal advice. Every case is different, and outcomes depend on the specific facts and circumstances involved. If you need legal assistance, contact Ilabaca Law at (407) 917-2087 to schedule a consultation.