A quitclaim deed in New York is a type of deed that transfers real property without making any warranties or guarantees. In the hierarchy of deeds, it is the deed that provides the least guarantees and is not used in real estate sales with valuable consideration. It is usually used when transferring properties among family members, in the event of divorce, or transferring property to a revocable trust.
What is a Quitclaim Deed
A quitclaim deed simply releases and quitclaims whatever title a grantor has over the property. It does not require actual proof that the grantor owns the property being deeded. It simply states that whatever rights the grantor has over the property, that it is being transferred to the grantee.
The quitclaim deed is the fastest form of transferring the property because it does not require a title search or title insurance. Because there is no warranty included in a quitclaim deed, this type of deed is not used for real estate sales where there is valuable consideration paid by the buyer to the seller. A quitclaim deed is a useful deed for transfers in cases of divorce, among family members, and to a revocable trust.
For example, if the divorce settlement provides that among the spouses, the husband gets the house in Staten Island, while the wife gets the condo in Manhattan, the husband would execute a quitclaim deed over his rights in the Manhattan condo to his wife, while the wife would execute a quitclaim deed over the house in Staten Island to the husband.
The wife does not need the husband to execute a title search and to provide title insurance because the husband and wife, when they bought the property, already had a title company provide a search and insurance over it. When the husband or the wife execute a quitclaim deed in favor of the other, it can be executed and recorded quickly because it does not need a title search or title insurance.
Recording of a Quitclaim Deed
Despite the fact that a quitclaim deed does not require title search or title insurance, it still needs to be executed and recorded in accordance with New York laws.
First, the grantor must sign the deed, and it must be acknowledged before a notary. The notary must stamp and sign the deed confirming that the deed contains the grantor’s authentic signature.
Second, the deed must include a legal description of the property being transferred, the county it is located in, the date of the transfer, the name of the grantor, the name of the grantee, and the consideration paid, among other things.
Third, the quitclaim deed must be recorded in order to be effective against third persons. Under NY Real Property Law § 291, if you fail to record a deed with the county clerk or city registrar, the deed is void against any person who gets the property from the same grantor in good faith, for valuable consideration, and who records it before you.
Statutory form of Quitclaim Deed
The statutory form of the quitclaim deed is in NY Real Property Law § 258, which states:
Statutory Form D. (Individual)
This indenture, made the ……. day of ……….., nineteen hundred and ………., between ……………, (insert residence), party of the first part, and ………….., (insert residence), party of the second part:
Witnesseth, that the party of the first part, in consideration of ………… dollars, lawful money of the United States, paid by the party of the second part, does hereby remise, release, and quitclaim
unto the party of the second part, …………… and assigns forever, all (description), together with the appurtenances and all the estate and rights of the party of the first part in and to said premises.
To have and to hold the premises herein granted unto the party of the second part, ………… and assigns forever.
In witness whereof, the party of the first part has hereunto set his hand and seal the day and year first above written.
In presence of:
Forms to be filed with the recording of a Quitclaim Deed
When recording the quitclaim deed, you need to fill out Form TP-584 and RP-5217. The type of form will depend on whether you are in NYC or outside of NYC. Those forms are usually filled out and filed online through The Automated City Register Information System (ACRIS).
You can hire a lawyer to help you prepare a quitclaim deed and to fill out the forms for recording with the proper government agencies in New York. Although a quitclaim deed does not provide warranties, it is still an effective method to transfer property, especially when you are sure the person who is executing the deed has the right to give you the property. For this reason, you should make sure that your quitclaim deed is executed and recorded correctly.
Other types of deeds
The other types of deeds in New York for transferring real property are:
- Full Covenant and Warranty Deed
- warrants that:
- The grantor is the owner in fee simple and has the right to convey the property
- The grantee can enjoy the property quietly
- The property is free from encumbrances unless specifically identified in the deed
- The grantor will execute or procure any further necessary assurance of the title to the property
- The grantor will forever warrant title to the property
- warrants that:
- Bargain and Sale Deed without covenant against grantor:
- Grants and assigns forever to the grantee all of the grantor’s rights to the property
- Provides an implication that the grantor has title to the property
- Bargain and Sale Deed with a Covenant Against Grantor:
- Includes a warranty that the grantor has not done anything which would encumber the property in any way
- Quitclaim deed:
- Grantor releases and quitclaims to the grantee all its rights to the property
- Executor’s Deed
- Referee’s Deed in Foreclosure
- Referee’s Deed in Partition
In real estate sales with valuable consideration, a buyer would require warranties from the seller, usually in the form of the full covenant and warranty deed. However, real estate practice also accepts the execution of a bargain and sale deed coupled with title insurance. Title insurance gives the guarantee to the buyer that the seller is transferring good title over the property to the buyer.
The statutory forms for the different types of deeds can be found in Real Property Law § 258.
Should you need assistance in preparing a quitclaim deed or recording it, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York, NY, Brooklyn, NY and Queens, NY. You can call us at 718-509-9774 or send us an email at firstname.lastname@example.org.