Quitclaim deeds are used to legally transfer real property rights to either another person or to a legal entity, such as a trust or a partnership. This is one of the common ways to transfer ownership, and it can be used in a range of situations. If you are going through a divorce in Arizona, dealing with an estate, or just trying to clear up a title issue, a quitclaim deed may be the tool you need. Understanding exactly what it does and what it does not do will save you from making a costly mistake.
When Would You Use a Quitclaim Deed?
It is possible to use a quitclaim deed when you need to change a name on a title, or when you want to add or remove a name from a title. These types of deeds are often used when a couple is getting married or divorced. They allow you to add or remove the name of a spouse. They are also used when an owner has a name change. For example, if the name were misspelled or the middle initial on the deed is incorrect, it would need to be changed and fixed.
Common situations where a quitclaim deed is used in Arizona include:
- Adding or removing a spouse’s name from a property title after marriage or divorce
- Transferring property into a living trust for estate planning purposes
- Correcting a name error or spelling mistake on an existing deed
- Transferring property between family members where title guarantees are not needed
- Moving property into or out of a business entity such as an LLC
If you are going through a divorce, the mortgage is a separate issue from the deed. This is one of the most important things to understand and one of the most common mistakes divorcing couples make. Simply getting your name removed from the deed does not remove you from the mortgage. If your name is on the loan, you are still legally responsible for that debt even after a quitclaim deed transfers the title to your ex-spouse. To get off the mortgage, the remaining spouse needs to refinance the loan in their name only. Your divorce attorney can advise on how to handle both the title and the mortgage as part of your overall property settlement.
If you decide to refinance and stay in the home on your own, you would get a new mortgage in your name and file a quitclaim deed to remove your ex from the title at the same time. If you both decide to sell, a quitclaim deed may not be needed at all since the property will be conveyed through the sale.
Another common use is for estate planning. If you and your spouse buy a home and want to make sure your children are cared for if both of you pass away, you may decide to transfer the title into a living trust. A quitclaim deed can be used to remove your names from the deed and add the name of the trust. There are other reasons you might need to use a quitclaim deed, and everyone’s situation is different.
What a Quitclaim Deed Does Not Do
- Does not guarantee a clean title: It offers no promises that the title is free of claims, defects, or disputes.
- Does not clear existing liens: It will not remove tax liens or other financial obligations from the property. The new owner inherits these issues automatically.
- Does not require due diligence: There is no legal requirement to investigate the history or health of the title before the transfer.
- Does not provide buyer protection: Unlike general or special warranty deeds, it offers no safety net or assurances, which is why it should not be used when selling to a stranger or in a standard real estate transaction.
Arizona Requirements for a Quitclaim Deed
- Written form and legal description: The deed must be in writing and contain the exact legal description of the property as it appears on the current deed. A vague or incomplete description will cause the county recorder to reject it.
- Signatures and notarization: Under ARS 33-401, the grantor must sign the deed in front of a notary public before it can be recorded.
- Required details: Following ARS 33-402, the document must include the full legal names and mailing addresses of both parties, the Assessor’s Parcel Number (APN), and a statement on how the grantee will hold title (such as joint tenants or community property). If left blank, co-owners default to tenants in common under ARS 33-431.
- Recording rules: The completed deed must be recorded at the county recorder’s office where the property sits. Because Arizona is a notice state, the transfer only gives legal notice to third parties once recorded. Under ARS 33-411, it must be recorded within 60 days of the transfer to avoid potential liability in future title disputes.
- Affidavit of Property Value: If the property is transferred for money, an Affidavit of Property Value (Form 82162) must accompany the deed. If it is a gift or transfers for no money, the deed must state the specific exemption under ARS 11-1134. For example, a transfer from a divorce decree uses exemption code A5.
- Taxes and fees: Arizona does not charge a state transfer tax or documentary stamp tax. However, federal gift or capital gains taxes may still apply, and the new owner inherits the original owner’s tax basis.
Quitclaim Deed vs. Other Deed Types in Arizona
| Deed Type | Level of Protection | Best Used For | Key Features |
|---|---|---|---|
| General Warranty Deed | Highest | Standard home sales and real estate transactions with strangers. | The seller guarantees the title is completely clear of all past and present claims or issues. |
| Special Warranty Deed | Limited | Commercial sales or specific residential transactions. | The seller only guarantees that they did not cause any title defects during their period of ownership. |
| Beneficiary Deed (ARS 33-405) | N/A (Estate Planning) | Transferring property to an heir after death without going through probate. | You keep full control and ownership of the home while alive. It is fully revocable and must be recorded before death. |
| Quitclaim Deed | Lowest | Simple transfers between trusted parties, family members, or divorce settlements. | Transfers only the current interest held with absolutely no warranties, no guarantees, and no due diligence requirements. |
What the Form Looks Like
Quitclaim deeds typically have several parts. There are two sections at the top of the form. One is for the use of the recorder and the other is for the return address. The middle portion of the form includes the legal description of the property, the names of those involved, and the dates. At the bottom of the form is where the notary acknowledges they witnessed the signing by the parties involved.
After the document has been completed, it needs to be recorded in the county where the property is located. Keep in mind that there can be specific requirements in each county recorder’s office. You will want to be aware of what these are and how they could affect the deed.
Should You Use a Free Online Template?
Today you can find a range of free legal templates online for transferring property. However, these can lead to more problems than you might expect. Although you might think you are saving money with a free template, there is a real chance you will fill it out incorrectly or incompletely. A deed that does not meet Arizona’s formatting requirements under ARS 11-480 or that uses an inaccurate legal property description will be rejected at the county recorder’s office. It could also create title problems that are expensive to fix later.
Instead of using a free quitclaim deed template, work with professionals. If there are no major legal issues to sort out, you can often work with a legal document preparer to get the paperwork done faster and at a lower cost than full attorney representation. It will reduce the risk of getting it wrong.
Conclusion
There is a lot to think about when deciding whether a quitclaim deed is the right option for your situation. It can be a simple and cost-effective tool when used correctly, but getting it wrong can cause title problems that are time-consuming and expensive to fix. The certified legal document preparers at Modern Law can help you prepare a quitclaim deed, a beneficiary deed, or other real estate documents and make sure they are filed correctly. If you are going through a divorce and need to deal with a shared property, speak with our division of assets team to make sure both the deed and the mortgage are handled properly as part of your settlement.
