What Are Florida Quitclaim Deeds and When Should You Use Them?

A quitclaim deed is a legal document that quickly transfers real estate ownership without guaranteeing a clear title. Quitclaim deeds are a quick, efficient, and inexpensive way to transfer property title in Florida. In certain circumstances, they are the ideal tool for the job. However, in some circumstances, quitclaim deeds can cause unintended title problems.

This article examines what a Florida quitclaim deed is, the specific legal requirements for a valid transfer, and when to use them.

What is a Quitclaim Deed?

In Florida, there are two primary types of deeds: a warranty deed and a quitclaim deed.

A warranty deed provides a guarantee that the seller holds clear title and will defend the buyer against any future claims.

A quitclaim deed provides no such guarantees. It does not convey title in the traditional sense. Instead, it conveys whatever interest the grantor (owner) has at that exact moment.

If the grantor owns the property in fee simple, the grantee receives everything. If the grantor actually owns nothing or there are hidden liens on the property, the grantee receives nothing and has no legal recourse against the grantor.

Because a quitclaim deed makes no promises about the quality or validity of the title, it is the ultimate “as-is” document of the real estate world.

Disadvantages of Quitclaim Deeds in Florida

The simplicity of a quitclaim deed is its greatest risk. In Florida, title insurance companies are often wary of quitclaim deeds in the chain of title, especially if the transfer was between unrelated parties.

1. The Title Insurance Gap: If you take title via a quitclaim deed, you may find it difficult to get title insurance when you eventually try to sell or refinance the property. Some insurers require a warranty deed to ensure there are no gaps in the ownership history.
2. Homestead Issues: Under the Florida Constitution, if a property is a primary residence (homestead), a spouse must sign the deed even if their name isn’t on the current title. Failing to get a spousal joinder is one of the most common reasons Florida quitclaim deeds fail.
3. Documentary Stamp Taxes: Many people believe quitclaim deeds are tax-free. In Florida, even if no money changes hands, you may still owe documentary stamp taxes to the county if there is an outstanding mortgage on the property.

When Should a Quitclaim Deed Be Used?

Quitclaim deeds are best used in non-sale situations where the parties already know and trust each other. Common uses include:

• Estate Planning: Transferring a home into a living trust.
• Business Planning: Transferring to a family-owned LLC.
• Divorce: Relinquishing a spouse’s interest in the marital home pursuant to a settlement.
• Clearing Title: Removing a “cloud” on a title by having a party with a potential (but unproven) interest sign away their rights.
• Adding a Relative: Adding a child, spouse, or other name to a deed.

Quitclaim Deed Requirements

To be legally valid in Florida, a quitclaim deed must include:

1. Grantor: The current owner of the property.
2. Grantee: The person receiving the property.
3. Consideration: The amount of money received by the grantor in exchange for giving the property to the grantee.
4. Legal Description: A formal written description is used to identify the property. Note this is not the USPS address.
5. Signature of the grantor: But not the grantee.
6. Signatures of two witnesses: As of January 1, 2024, you must include the mailing address for each witness.
7. Signature of a notary.

Steps to Getting a Quitclaim Deed

There are four steps to getting a quitclaim deed.

1. Identify the Property and Parties

Include the names and addresses of the grantor (current owner) and the grantee (new owner) and a clear description of the property.

2. Draft the Quitclaim Deed

You can use a standard form or have an attorney draft one. The document must include the property’s formal legal description.

3. Sign the Deed

The grantor must sign the deed in front of two witnesses and a notary public. If the property is a homestead and the grantor is married, both spouses must sign, even if only one spouse holds the legal title.

4. Calculate Taxes and Recording Fees

The tax is $0.70 for every $100 of “consideration” (money paid).

Mortgages count as consideration. If you transfer a property that has a mortgage, you must pay taxes on the outstanding mortgage balance, even if no money changes hands.

Recording fees are typically $10.00 for the first page and $8.50 for each additional page.

5. Record the Deed

Take the original signed deed to the records office in the county where the property is located.

Recording fees are $10.00 for the first page and $8.50 for each additional page.

Frequently Asked Questions