How do I transfer the deed?
Steps to Transfer a Deed
First, choose the type of deed. A warranty deed guarantees clear title, while a quitclaim deed transfers only the seller's interest without guarantees. For off-market deals, a quitclaim is common but riskier for the buyer. Next, prepare the deed with the correct legal description and sign it in front of a notary.
Then, deliver the deed to the buyer. Finally, record the deed with the county recorder's office to make it public record and protect the buyer's ownership. Recording fees are usually $10–$50, but can be higher in some areas.
- Select deed type (warranty, quitclaim, bargain and sale)
- Draft deed with legal description and parties' names
- Sign and notarize the deed
- Deliver deed to buyer
- Record deed with county clerk
- Update property tax and insurance records
Legal and Tax Considerations
Transferring a deed may trigger transfer taxes, which vary by state and county. Some states charge a percentage of the sale price, while others charge a flat fee. There may also be capital gains tax implications for the seller, and gift tax if the transfer is a gift.
If the property has a mortgage, transferring the deed doesn't remove the loan. The lender could call the loan due if the transfer violates a due-on-sale clause. Always check with a real estate attorney or tax professional.
Do You Need a Lawyer?
In some states, only attorneys can prepare deeds, while others allow individuals to do it themselves. Using a title company or attorney ensures the deed is valid and properly recorded. Mistakes in the legal description or notarization can invalidate the transfer.
For off-market deals, it's wise to have a professional handle the deed transfer to avoid future title issues.
Common mistakes
- Using the wrong deed type—quitclaim deeds offer no warranty, so you may have no recourse if title problems arise.
- Failing to record the deed, which can leave you vulnerable to claims from other parties.
- Ignoring due-on-sale clauses, which can let a lender foreclose if you transfer the property without paying off the mortgage.
