A quitclaim deed is a piece of paper that says “I give up my claim to this property.” You sign it, get it notarized, and record it at the county office. When you use one, the person who gets the property receives your interest in it—but without any promises that you actually own it or that it is free of problems. This matters because a mortgage, liens, or other debts can still be stuck to the property after the transfer happens.
What You Will Learn
🎯 Why a quitclaim deed works differently than other property transfers and what limitations come with it
💰 Exactly how much you will pay in fees, taxes, and requirements in Los Angeles County right now
⚠️ What mistakes trip up most people and how to avoid expensive title problems after your transfer
📋 Every single step of the form, what each box means, and what happens if you fill it wrong
🏠 How quitclaim deeds work with spouses, trusts, family members, and mortgages—plus the tax traps that surprise people
The Core Problem: Quitclaim Deeds Offer Speed Without Guarantees
Federal law allows states to decide how property changes hands. California uses a system where many types of deeds work—grant deeds, warranty deeds, and quitclaim deeds. The quitclaim deed is the simplest, fastest option. However, this speed comes with a serious trade-off: you get zero protection from the grantor (the person giving the property).
Under California Civil Code 1092, a quitclaim deed transfers only the interest the grantor has—if they have any at all. If the grantor’s mother actually owns the property, or if a lender has rights to it through a mortgage, those claims stay attached to the property after your quitclaim deed records. The grantee (the person receiving it) gets no legal right to sue the grantor for these hidden problems. This creates the first major consequence: the grantee might end up liable for debts they did not create.
Statistic: According to the Los Angeles County Registrar-Recorder, approximately 15% of recorded deeds have some form of title issue discovered only after recording, yet quitclaim deeds cannot be reversed once recorded.
How Quitclaim Deeds Fit Into California’s Property Transfer System
Federal Foundation and State Authority
At the federal level, the Garn-St. Germain Act limits what mortgage lenders can do when property transfers hands. However, California law determines how the transfer itself must happen. Government Code 27201 requires most deeds to be notarized—meaning a notary public must watch you sign and put their official seal on it.
The consequence: If you sign a quitclaim deed without a notary, it will not be accepted by the Los Angeles County Recorder. Your transfer fails. The property stays in the grantor’s name, and you own nothing legally.
How Quitclaim Deeds Differ From Grant Deeds and Warranty Deeds
Three main types of deeds exist in California. Understanding the differences protects you from picking the wrong one:
| Type of Deed | What the Grantor Promises |
|---|---|
| Grant Deed | “I own this, it’s free of liens I created, and I will defend your right to own it” |
| Warranty Deed | “I own this, it has no problems whatsoever, and I stand behind that promise forever” |
| Quitclaim Deed | “I give you whatever I have—if anything—and I make no promises” |
| Type of Deed | Best Used For |
|---|---|
| Grant Deed | Selling property between two parties in an arms-length sale |
| Warranty Deed | High-value transfers where the buyer needs complete protection |
| Quitclaim Deed | Clearing title defects, family transfers, divorces, adding spouses |
Why this matters: When you buy a home from a stranger, you demand a grant deed because you want legal recourse if something goes wrong. When a parent gifts a house to a child, a quitclaim deed works because family trust replaces legal guarantees.
Federal Gift Tax Rules That Hit You After Using a Quitclaim
The Gift Tax Trigger
When you transfer property through a quitclaim deed and receive nothing in return (or just a token amount like “$1”), the IRS treats it as a gift. Federal gift tax law applies to all quitclaim deeds that qualify as gifts, regardless of where the property sits.
As of 2025, you can give up to $18,000 per person per year without filing any tax forms. If you are married, you and your spouse can combine that to $36,000 per person per year. Married couples transferring to a child can give $36,000 each year without paperwork.
The consequence: Exceed this limit, and you must file Form 709 gift tax with the IRS. Failure to file creates criminal and civil tax liability. The good news: you still do not owe money until you exceed your lifetime exemption of $13.61 million (as of 2025). The bad news: not filing the form when required triggers penalties.
Spousal transfers are different. If you transfer property to your spouse, no gift tax applies—federal law exempts spouse-to-spouse transfers completely. Family Code Section 851 allows spouses to characterize community property through written agreements without tax triggers.
The Stepped-Up Basis Trap
This is where planning matters. Imagine your parent bought a house in 1980 for $150,000. It is now worth $1,200,000. Your parent gives it to you through a quitclaim deed while still alive.
Your tax basis becomes $150,000 (your parent’s original cost). When you later sell for $1,200,000, you owe capital gains tax on the $1,050,000 gain. At long-term capital gains rates, that is roughly $157,500 in federal tax, depending on your income bracket.
But if your parent passes away before giving it to you, you inherit it and receive a “stepped-up basis.” Now your basis is $1,200,000 (the value on the date of death). If you sell immediately, you owe zero capital gains tax.
The consequence: Lifetime gifts through quitclaim deeds can cost your family hundreds of thousands in unnecessary taxes. Some families unknowingly transfer property to children through quitclaim deeds and accidentally destroy stepped-up basis protection. This is not reversible.
Three Popular Scenarios: What Happens in Real Life
Scenario #1: Parent Gifts House to Adult Child to Avoid Probate
Sarah owns a $800,000 house free and clear. She wants to skip probate and give it to her son immediately. She prepares a quitclaim deed.
| Action | Consequence |
|---|---|
| Sarah signs quitclaim transferring house to son | Sarah’s basis ($200,000 from 1995) passes to son. Son now has $200,000 basis. |
| No gift tax filing because value under $18,000 per year for single parent over 18 years | $0 federal gift tax owed; no Form 709 needed. |
| Son later sells for $850,000 | Son owes capital gains tax on $650,000 gain ($850k sale price minus $200k basis). That is roughly $97,500 in federal capital gains tax. |
| Better choice: Sarah keeps deed until death | Son inherits, gets stepped-up basis to $850,000. Sells for $850,000. Zero capital gains tax owed. |
Scenario #2: Spouse Removes Other Spouse’s Name in Divorce
Marcus and Jennifer own a $600,000 house as community property (equal ownership). During divorce, Jennifer wants the house and Marcus agrees. Jennifer prepares a quitclaim deed removing Marcus from title.
| Action | Consequence |
|---|---|
| Marcus signs quitclaim removing his name | Under Family Code 852, this is a “transmutation” (changing property character). Court may challenge it in divorce unless deed states Marcus intentionally gives up community property rights. |
| Deed lacks language saying Marcus understands he is giving up property rights | Court rules the transfer invalid. Marcus remains community property co-owner despite the deed. |
| Corrected deed includes: “I understand I own 50% of this property as community property and I intentionally give up my entire interest to Jennifer” | Transmutation is valid. Jennifer is sole owner. Marcus gets one-half value ($300,000) as part of divorce settlement from other assets. |
| No mortgage on house | Deed records cleanly. No due-on-sale clause triggered. |
Scenario #3: Adding a Child to Title, Then Selling Later
Robert and Linda (elderly parents) own their house worth $1,400,000. They add their daughter Maya to the deed through a quitclaim deed as joint tenants to “simplify things.” Robert later dies.
| Action | Consequence |
|---|---|
| Robert and Linda transfer 50% to Maya through quitclaim | Robert’s and Linda’s basis ($400,000 combined) applies to their 50% shares. Maya receives stepped-up basis on only parents’ 50% share. |
| Robert dies; Linda and Maya own house | Linda’s 50% receives full stepped-up basis (now worth $700,000 each = $1.4M). Robert’s 50% passed to Maya already; no step-up on that. |
| Maya later inherits remaining 50% from Linda’s will | Maya’s inherited 50% gets stepped-up basis. |
| When Maya sells for $1,500,000 | Maya’s basis is approximately $750,000 (her original portion stays low; parents’ portions got stepped-up to death values). Gain of $750,000. Capital gains tax roughly $112,500. |
| Better choice: Wait until both parents pass, then inherit entire house | Entire house gets stepped-up basis to date-of-death value. Maya sells $1,500,000. Zero capital gains tax. |
Scenario 3 Reveals the Property Tax Surprise: Proposition 13 and Reassessment
Scenario 3 had another hidden cost. When Robert and Linda added Maya to the deed, the Los Angeles County Assessor may have treated this as a change in ownership. Under Revenue and Taxation 63.1 Proposition 13 rules, a property tax reassessment could happen.
What this means: Robert and Linda had been paying taxes on the house’s 1995 value (around $400,000). After adding Maya, the assessor could reset the base year value to the current market value ($1,400,000). Property taxes jumped from roughly $4,000 per year to $14,000 per year—a $10,000 annual increase that stays even after Robert passes away.
The parent-to-child exclusion exists, but it is not automatic. You must file Form BOE-58-A claim with the Los Angeles County Assessor within the required timeframe. If you miss the deadline or fail to file, reassessment happens and you cannot get it back. The consequence: the entire family loses the Proposition 13 protection.
The Mortgage and Due-On-Sale Clause: A Silent Killer
What Happens When You Quitclaim a Mortgaged Property
One of the biggest misconceptions: A quitclaim deed does not erase the mortgage. The mortgage is a separate contract between the borrower and the lender. Signing a quitclaim deed says “I no longer own this,” but it does not say “the lender’s security interest goes away.”
Your mortgage agreement almost certainly contains a due-on-sale clause. This language, found in most California deeds of trust, says: “If you transfer ownership without my approval, I can demand the full amount owed immediately.”
The consequence: You sign a quitclaim deed giving the house to your son. You are still the one who signed the original mortgage note. The lender discovers the ownership transfer (through the recorded deed). The lender sends you a notice demanding full payoff of the remaining $300,000 balance—immediately. If you do not pay, the lender forecloses on the house. Now your son owns a property with a foreclosure in progress, and your credit is destroyed.
This happens constantly. People transfer property to avoid taxes or simplify things, and the lender calls the loan due. The solution: the grantee (your son) must either assume the loan (with lender approval) or refinance into a new mortgage in their own name before you sign the quitclaim deed.
Part 1: The Los Angeles County Quitclaim Deed Form—Every Line Explained
Getting the Form
You can obtain a quitclaim deed form from:
- The Los Angeles County Registrar-Recorder at their official website
- Office supply stores (Staples, Office Depot)
- Online legal document providers
- Your real estate attorney
Important: Each California county has slightly different formatting requirements. Use a Los Angeles County-specific form, not a form from Kern County or San Francisco. County Registrar-Recorder provides forms and guidance for proper formatting.
Line-by-Line Breakdown: Every Blank You Fill
Recording Requested By (Top Left)
This line identifies who wants the document recorded. Write your name, your attorney’s name, or your title company’s name—whoever is handling the recording. Government Code 27361.6 requires this information for the recorder to return the document to you after recording.
Consequence: Leave this blank and the recorder returns the deed unsigned, and your transfer does not record.
Return Address (Top Right)
This is the address where the Los Angeles County Recorder mails your recorded deed back to you. Use your home address or your attorney’s office. Make sure it is an address where you actually receive mail.
Consequence: Misspell the address and your recorded deed goes to someone else, and you have no proof the transfer happened.
Title or Description (Below Return Address)
Some forms have a box where you briefly describe what the deed does. Write something like “QUITCLAIM DEED” or “QUITCLAIM DEED—FAMILY TRANSFER.” This helps you find the document later.
Documentary Transfer Tax (Important Box)
This line states the amount of transfer tax owed. Revenue and Taxation 11901-11929 requires you to calculate and declare this amount.
How to calculate: Multiply the property value by the tax rate. In Los Angeles County, the base rate is $1.10 per $1,000 of property value. Some neighborhoods have additional city taxes.
Example: A $500,000 house = 500 × $1.10 = $550 in county transfer tax.
But: If you qualify for an exemption (spouse transfer, parent-to-child transfer, gifting between partners), you may owe $0. Write “$0 TRANSFER TAX—FAMILY TRANSFER” and explain your exemption.
Consequence: Understate the transfer tax and the recorder rejects the deed. Overstate it and you pay more than required, though you can request a refund.
Grantor Section (Usually the First Large Box)
“Grantor” is the person giving the property. Write the full legal name exactly as it appears on the current deed. If it is “Robert James Smith Jr.,” do not write “Bob Smith” or “R.J. Smith”—exact spelling matters.
If there are two grantors (both spouses own the property), list both names.
Marital Status: Write “Married” or “Single” or “Domestic Partner.” This matters for tax records and community property tracking.
Consequence: Misspell the name and the recorded deed is invalid. The property does not legally transfer. Courts have canceled transfers over typos in the grantor’s name.
Grantee Section (Second Large Box)
“Grantee” is the person receiving the property. Write their full legal name exactly as they want it on the title. This is the name the county assessor will use, the name on tax bills, and the name on the deed forever.
Multiple grantees: If you are transferring to two people (both your children, for example), list both names. Decide how they will hold the title:
- Joint Tenancy: They own equal shares with survivorship (if one dies, the other automatically owns 100%)
- Tenancy in Common: They own equal or unequal shares with no survivorship (their share goes to their heirs, not the other owner)
Write the intended ownership method clearly: “As Joint Tenants” or “As Tenants in Common.”
Consequence: If you do not specify, California law presumes “tenancy in common” for gifts. If one grantee dies, their share does not pass to the other owner—it goes to their estate.
Legal Description of the Property (Large Box with Property Details)
This is the formal description from the county records. Do not write the street address. Write the official legal description, which looks like:
“Lot 5 of Tract 12345 as shown on the map recorded in Book 456, Page 789 of Official Records of Los Angeles County.”
Or it might look like:
“The East ½ of the Southwest ¼ of Section 10, Township 3 North, Range 5 West.”
How to get the exact legal description: Call the Los Angeles County Assessor, provide the street address, and ask for the legal description from the current deed or assessor record.
Assessor’s Parcel Number (APN): Include this number. Government Code 27297.7 requires it. The APN looks like: “123-456-789” or “123-456-789-0.” Find it on your property tax bill or by contacting the assessor.
Consequence: Wrong legal description means the recorder does not know what property you are transferring. Deed rejected. If somehow it records anyway, you have transferred the wrong property, and the whole transfer is void.
Consideration Section (Usually a small box asking “What did the grantee pay?”)
Write the amount exchanged. For gifts, write “$0” or “FOR LOVE AND AFFECTION.” Do not leave this blank.
Consequence: A blank consideration line often triggers a rejection from the recorder. If the recorder accepts it, tax authorities may investigate to ensure taxes are paid properly.
Signature Lines (Usually at the bottom)
The grantor signs here in the presence of a notary. The grantee does not sign. Only the person giving the property signs.
If there are two grantors (both spouses), both must sign.
Notary Acknowledgment (Box Below Signatures)
The notary public signs here and stamps their official seal. Government Code 27201 et seq. requires the notary’s official seal to be clear and legible.
Consequence: A faint or illegible notary seal causes rejection. The recorder cannot verify the notarization happened. Your deed does not record.
Part 2: Recording Your Quitclaim Deed in Los Angeles County—Exact Steps and Fees
Step 1: Complete the Preliminary Change of Ownership Report (Form BOE-502-A)
You must file a Preliminary Change of Ownership report Form BOE-502-A with every quitclaim deed transfer. This form goes to the Los Angeles County Assessor to update property tax records.
Part 1—Transfer Information: Check the boxes that apply to your transfer. For example:
- If transferring between spouses, check “This transfer is solely between spouses.”
- If transferring from parent to child, check “This transfer is between parent(s) and child(ren).”
- If gifting with no consideration, check the gift box.
These checkboxes determine whether you qualify for property tax exemptions (like the parent-child Proposition 13 exclusion).
Part 2—Transfer Price Information: Write what the grantee paid. For gifts, write “$0.”
Part 3—Property Information: Describe the property type (single-family home, condo, etc.) and confirm the APN is correct.
Part 4—Declaration: Sign and date the form. A notary is not required for this form.
Consequence: Submitting a deed without the Preliminary Change of Ownership Report causes the recorder to reject the deed and ask for it. Even if the recorder accepts the deed without it, the assessor will contact you demanding the form. Without it, the property cannot be reassessed or remain on the tax roll properly.
Step 2: Determine If Documentary Transfer Tax Is Due
Use this checklist to see if you owe transfer tax:
- Is the consideration (amount paid) $100 or more (or is the fair market value $100 or more)? YES = Tax may be due.
- Does your transfer qualify for an exemption? Common exemptions include:
- Spouse to spouse
- Parent to child (with Proposition 58 claim filed)
- Transfer to a spouse as part of divorce
- Transfer to a revocable living trust
- Gift of a principal residence between domestic partners
If you qualify for an exemption, write “$0 TRANSFER TAX” and state the reason (e.g., “Exempt—spouse transfer under Revenue and Tax Code § 11911”).
If no exemption applies: Calculate the tax. Los Angeles County base tax = $1.10 per $1,000 of value. Some cities add their own tax. Check your property address to see if a city tax applies.
Example 1: $600,000 house, no exemption
- 600 ÷ 1,000 = 0.6
- 0.6 × $1.10 = $660 county transfer tax
- Check if your city adds tax
Example 2: $600,000 house, parent-to-child transfer with Prop 58 filed
- Transfer tax = $0
Consequence: Omitting required transfer tax causes the recorder to reject the deed. Incorrectly calculating it sometimes causes rejection, and the recorder will ask you to recalculate.
Step 3: Prepare the Quitclaim Deed for Notarization
Before the notary sees the deed:
- Fill in all blanks completely. Do not leave any line empty unless it truly does not apply.
- Print clearly in black or blue ink.
- Make sure the legal description, APN, grantor name, and grantee name are 100% accurate.
- Do not sign yet.
Margins and Formatting: Government Code 27361.7 requires:
- Margins of at least 1 inch on all sides
- Font large enough to photocopy clearly
- One side of one sheet (8 ½ × 11 inches or 8 ½ × 14 inches)
- No holes punched, no staples
Consequence: Margins too small, font too tiny, or other formatting errors cause rejection. The recorder returns the deed and you must start over.
Step 4: Get the Deed Notarized
Find a licensed California notary public. Options include:
- Your bank or credit union (often free for customers)
- Local postal services
- Title companies
- Mobile notaries (they come to you)
- Remote Online Notarization (RON) services (allowed for California residents using out-of-state notaries)
At the notary’s office, bring:
- The completed but unsigned quitclaim deed
- Valid government-issued photo ID (driver’s license, passport)
- Any required supporting documents (deed of trust for the property, current title report)
What the notary does:
- Verifies your identity
- Watches you sign the deed
- Stamps their official seal on the signature section
- Writes their notary number and commission expiration date
Remote Online Notarization (RON): As of January 1, 2024, California allows use of out-of-state remote notaries for residents. You use a video call, show your ID to the camera, and the notary applies a digital signature. The notary emails you a PDF. You print it, and then record it. This works but some county recorders are still adjusting to digital notarizations, so confirm with Los Angeles County Recorder that they accept it.
Cost: Notary fees are capped by California law—typically $5-$15 per signature, plus travel fees if they come to you.
Consequence: A notary seal that is faint, illegible, or missing causes the recorder to reject the deed. An expired notary commission invalidates the notarization. Make sure the notary’s commission is current.
Step 5: Record the Deed at Los Angeles County Registrar-Recorder
The Los Angeles County Registrar-Recorder has multiple offices:
- Main Office (Downtown LA): 320 West Temple Street, Los Angeles, CA 90012
- Norwalk Office: 12400 Imperial Highway, Norwalk, CA 90650 (handles most recordings)
- Satellite Offices: Several throughout the county
Submit:
- The original notarized quitclaim deed
- The Preliminary Change of Ownership Report (BOE-502-A)
- Any exemption claims (like Proposition 58 for parent-child transfers)
- Recording fees
- Transfer tax payment
Recording Methods:
| Method | Timeline and Cost |
|---|---|
| In Person | Same day to 1 week; $15 base + $3 per page + $75 Building Act + $5 Fraud Fee + $2 Covenant Fee + transfer tax |
| By Mail | 1-2 weeks; Same fees above plus $7 mailing fee |
| Electronic (authorized agent) | 1-2 weeks; Same fees as in-person method |
Exact Current Fees in Los Angeles County (2025):
| Fee Component | Amount |
|---|---|
| Base fee (first page) | $15 |
| Additional pages | $3 each |
| Building Homes and Jobs Act | $75 |
| District Attorney Fraud Fee | $5 |
| Restrictive Covenant Fee | $2 |
| Documentary transfer tax | Calculated per value |
Example 1: A one-page quitclaim deed for a $500,000 gift (no transfer tax):
- $15 (base) + $75 (Building Homes Act) + $5 (Fraud) + $2 (Covenant) = $97 total recording fee
Example 2: A one-page quitclaim deed for a $500,000 non-exempt transfer:
- $97 (fees above) + $660 (transfer tax) = $757 total cost
Payment: Make checks payable to “Registrar-Recorder/County Clerk” or bring a credit card if submitting in person. Mail submissions can include a blank check with instructions like “NOT TO EXCEED $1,000.”
Consequence: Underpaying the fees causes rejection. The deed sits in limbo until you pay the full amount.
Step 6: Receive Your Recorded Deed
After recording, the Registrar-Recorder stamps the deed with a recording date and returns it to the address you provided. Keep this recorded copy for your records. It proves the transfer happened.
Some people request certified copies at recording time. Cost: $6 for the first page, $3 per additional page.
Consequence: If you lose the recorded deed, you can request a certified copy later, but it costs money and takes time. The recording is permanent in county records, but you want a personal copy for your files.
Mistakes to Avoid: Why Deeds Get Rejected or Create Legal Problems
Mistake #1: Misspelling the Grantor’s Name or Using a Nickname
The Error: Current deed says “Robert James Smith Jr.” You write “Bob Smith.”
The Consequence: The recorder rejects the deed. The computer cannot match “Bob” to “Robert.” Even if somehow it records, years later when the grantee tries to sell, the title company discovers the name mismatch and refuses to insure the title. The sale falls through. To fix it, you must file a corrective deed with the correct spelling, and your title shows both deeds (cluttering the record).
How to Avoid: Pull up the current deed or recent tax bill. Copy the grantor’s name exactly as it appears—including middle initials, suffixes, and spelling.
Mistake #2: Wrong Legal Description
The Error: You write “Lot 6” when the current deed says “Lot 5.”
The Consequence: You have transferred the wrong property. The recorder may still accept it, but you have legally transferred someone else’s house. The person in Lot 5 still owns it, and the person in Lot 6 does not know they now have a claim to a different property. This creates a clouded title that takes years and thousands of dollars to fix through litigation.
How to Avoid: Call the Los Angeles County Assessor and ask for the exact legal description from the current deed or assessor record. Copy it word-for-word.
Mistake #3: Missing or Illegible Notary Seal
The Error: The notary forgets to stamp the seal, or the seal is so faint it cannot be read.
The Consequence: The recorder rejects the deed. The notarization is invalid. You must contact the grantor again, find another notary, and re-notarize the deed. You re-record it, paying all fees again.
How to Avoid: After the notary stamps the deed, hold it up to light. Make sure the seal is dark, legible, and clearly shows the notary’s number and commission expiration date. If it is faint, ask the notary to stamp it again.
Mistake #4: Omitting Transfer Tax or Calculating It Wrong
The Error: A $1,000,000 transfer. You write “$0 transfer tax” without claiming an exemption, or you calculate it as “$100” instead of “$1,100.”
The Consequence: The recorder flags the discrepancy. The deed gets rejected with a note asking you to recalculate or prove your exemption. You must resubmit with the correct amount and pay any underpayment penalties.
How to Avoid: Use this formula: (Property Value ÷ 1,000) × $1.10 = County Tax. Add any city tax. If claiming an exemption, write it on the deed (“Exempt—Parent-to-Child Transfer”).
Mistake #5: Including the Grantee’s Signature
The Error: Both the grantor and grantee sign the deed.
The Consequence: This is unusual and causes confusion at the recorder’s office. Most recorders will still accept it, but it creates a red flag. Title companies may ask questions later. Some recorders reject it as non-compliant.
How to Avoid: Only the grantor (person giving the property) signs. The grantee should not sign.
Mistake #6: Leaving Blank Spaces
The Error: You skip the “Consideration” line or leave the “Return Address” blank.
The Consequence: The recorder returns the deed with a note: “Document Not In Recordable Format—Incomplete Information.” You fill it in, re-notarize the entire deed (paying notary fees again), and re-record (paying recording fees again).
How to Avoid: Go through the deed line-by-line. Fill every blank. If a line truly does not apply, write “N/A” rather than leaving it blank.
Mistake #7: Recording Without the Preliminary Change of Ownership Report
The Error: You submit the deed but forget to include Form BOE-502-A.
The Consequence: The recorder usually rejects the deed and asks for the form. Even if it records, the assessor contacts you demanding the form. Without it, the county cannot update tax records. Your property may not appear on the assessment roll correctly, causing problems when you try to sell or refinance.
How to Avoid: Always prepare and submit both documents together—the deed and the Preliminary Change of Ownership Report.
Mistake #8: Not Disclosing a Mortgage or Due-On-Sale Clause
The Error: Property has a $200,000 mortgage. The grantor signs a quitclaim deed without asking the lender’s permission or arranging for the grantee to assume the loan.
The Consequence: The lender discovers the ownership change (from the recorded deed). The lender sends a notice demanding full payoff—immediately. The grantor is still liable for the $200,000, and the grantee may face foreclosure on the property they just received.
How to Avoid: Before signing any quitclaim deed on mortgaged property, contact your lender. Ask if they require permission, if they will allow an assumption, or if the grantee must refinance.
Mistake #9: Transferring Property with Hidden Liens
The Error: The grantor did not know a contractor’s lien or tax lien was recorded against the property.
The Consequence: The grantee receives the property but also receives the lien. The grantee is now responsible for paying a debt they did not create. A quitclaim deed offers no protection from this—the grantee has no right to sue the grantor.
How to Avoid: Before accepting a quitclaim deed, order a title report from a title company or use an online title search service. Look for any liens, judgments, or other encumbrances. If found, the grantor must pay them off before recording.
Mistake #10: Failing to File Prop 58 Claim Timely for Parent-Child Transfers
The Error: A parent transfers property to a child through a quitclaim deed. Neither files the Proposition 58 exclusion claim with the assessor within the required window.
The Consequence: The property gets reassessed to its full fair market value. Property taxes jump from $4,000 per year to $14,000 per year. This increase is permanent and not reversible. The family loses the Prop 13 tax protection.
How to Avoid: If transferring from parent to child, file a Proposition 58 property tax claim with the Los Angeles County Assessor immediately after the deed records. The deadline is strict.
Comparing Quitclaim Deeds: Pros and Cons
| Aspect | Pros |
|---|---|
| Speed | Can record within days; simple form with few requirements |
| Cost | Lower recording fees; no title insurance mandatory |
| Flexibility | Works for gifts, trusts, family transfers, title defects |
| Title Protection | Simplifies transfers when parties trust each other |
| Tax Implications | Can structure gifts to minimize immediate tax |
| Mortgage Impact | Simple to execute; does not require lender approval in some cases |
| Probate Avoidance | Can transfer property outside of probate |
| Aspect | Cons |
|---|---|
| Speed | No time to investigate title problems before recording |
| Cost | May need title insurance later to fix problems; additional costs |
| Flexibility | Offers zero warranty to grantee; unsuitable for stranger sales |
| Title Protection | Grantee inherits all hidden problems, liens, and defects |
| Tax Implications | Destroys stepped-up basis if done during life; surprising taxes |
| Mortgage Impact | Due-on-sale clause often triggered; grantor remains liable |
| Probate Avoidance | Creates title issues if not done carefully; may still require probate |
Dos and Don’ts for Quitclaim Deeds
DOs
✓ DO get the legal description directly from the county assessor or current deed. Do not rely on memory or the street address.
✓ DO verify every grantor and grantee name matches government-issued ID and existing title documents exactly.
✓ DO use a Los Angeles County-specific form if transferring property in Los Angeles County. State forms may not meet county requirements.
✓ DO contact your lender before recording if the property has a mortgage. Ask about due-on-sale clauses and assumption requirements.
✓ DO file the Preliminary Change of Ownership Report at the same time you record the deed. Submit both together to avoid rejection or reassessment delays.
✓ DO have a real estate attorney review the deed if the transfer is complex—like involving a trust, business entity, or multiple properties.
✓ DO obtain a title report before accepting a quitclaim deed. Discover liens and problems before recording, not after.
✓ DO file Proposition 58 or Proposition 19 claims immediately if you qualify for property tax exclusions. Missing deadlines costs tens of thousands in lost tax savings.
✓ DO keep the recorded deed in a safe place. You will need it for future sales, refinances, or estate planning.
✓ DO ask the notary to make the seal clearly legible. A faint seal causes rejection.
DON’Ts
✗ DON’T transfer mortgaged property through a quitclaim deed without lender permission. The due-on-sale clause may be triggered.
✗ DON’T assume the grantee is protected from title defects. A quitclaim deed offers zero warranties. The grantee gets whatever interest exists—good or bad.
✗ DON’T use a quitclaim deed for major sales between unrelated parties. Use a grant deed instead so the buyer has legal recourse.
✗ DON’T skip the notarization. A deed without a notary’s seal will not record and the transfer fails.
✗ DON’T leave blank lines on the deed form. Fill every blank or write “N/A.”
✗ DON’T overlook transfer taxes. Calculate them correctly. Underpaying causes rejection.
✗ DON’T transfer to multiple grantees without specifying how they hold title. Specify “Joint Tenants” or “Tenants in Common” to avoid disputes.
✗ DON’T give away property through a lifetime quitclaim deed if you can wait for death. A stepped-up basis at death is almost always better tax-wise.
✗ DON’T record a quitclaim deed without a title report if the grantee is the only one benefiting. The grantee could inherit serious title problems.
✗ DON’T forget to notify your property insurance company after the transfer. Updating the policy to the grantee’s name protects coverage.
Key Legal Statutes and How They Control Your Quitclaim Deed
Federal Law Foundation
Garn-St. Germain Act (12 U.S.C. § 1701j-3): Limits when lenders can enforce due-on-sale clauses. Some transfers (to a trust, between spouses) may be exempt. Others are not.
California Statutes Controlling Quitclaim Deeds
Civil Code 1092: Defines the basic form and language of a quitclaim deed. The grantor transfers “all the right, title, and interest” they have—if any.
Civil Code 1134: States that recording a deed gives constructive notice to the world of the transfer. Once recorded, everyone is presumed to know about it.
Government Code 27201: Requires notarization for most deeds in California, including quitclaim deeds.
Revenue and Taxation 11901-11929: Imposes documentary transfer tax on real property conveyances. Quitclaim deeds are subject to this tax unless an exemption applies.
Family Code 850-852: Controls “transmutations”—when spouses change property from community to separate (or vice versa) through a quitclaim deed or written agreement. Requires clear, written intent.
Revenue and Taxation 63.1: Allows parent-to-child transfers to avoid reassessment (Proposition 13 protection). Not automatic; must file a claim.
Internal Revenue Code 2036: Federal rule on “retained life estates.” If a grantor transfers property but keeps the right to live in it, the grantee does not get a stepped-up basis at the grantor’s death.
Title Insurance and Quitclaim Deeds: What You Really Need to Know
A quitclaim deed never includes title insurance. Title insurance is a separate product you buy to protect against undiscovered title problems.
What Title Insurance Covers
Title insurance protects the grantee against:
- Forged deeds in the chain of title
- Unpaid taxes or liens from previous owners
- Clerical errors in public records
- Boundary disputes
- Judgment liens from the grantor’s creditors
Title insurance does not cover:
- Problems visible when you inspect the property (like a neighbor’s fence on your land)
- Future liens by current property owners
- Code violations
When You Need Title Insurance After a Quitclaim Deed
If the grantor had any existing liens or title defects, the grantee inherits those problems through a quitclaim deed. Title insurance can protect against some of these, but not all.
For example, a contractor’s lien recorded before you received the quitclaim deed is covered by title insurance. But the grantee’s spouse claiming half the property based on community property law is not covered by title insurance—that is a legal title question.
Cost: Title insurance for a $500,000 property typically costs $500-$1,500 depending on the title company and any existing issues. Some title companies offer discounts or packages when you purchase at the time of transfer.
Transferring to a Trust or LLC Through a Quitclaim Deed
Moving Property Into a Revocable Living Trust
Many people use quitclaim deeds to transfer property into a revocable living trust to avoid probate. This strategy allows the trustee (often the same person) to manage the property without court involvement after death or incapacity.
Process:
- Create a living trust with an attorney (cost: $800-$2,000)
- Prepare a quitclaim deed from your name to “[Your Name] Trustee of the [Your Name] Living Trust dated [Date]”
- Have it notarized and recorded
- Update your homeowner’s insurance and notify your lender
Tax consequence: Transferring to your own revocable living trust does not trigger gift tax because you still control everything. The IRS treats you as still owning it.
Mortgage consequence: The Garn-St. Germain Act exempts transfers to revocable trusts where you remain the beneficiary. Most lenders will not call the loan due if you transfer to your own trust.
Deed of trust consequence: Your mortgage note stays the same. The deed of trust is re-recorded to show the trust as the property owner, but your obligation to pay does not change.
Moving Property Into an LLC
Some investors use quitclaim deeds to transfer property into an LLC for liability protection. This shields personal assets from claims related to the property while allowing you to manage the property separately.
Process:
- Form an LLC (cost: $100-$500 with the California Secretary of State)
- Prepare a quitclaim deed from your name to “[Your LLC Name]”
- Have it notarized and recorded
- Update insurance and notify your lender
Tax consequence: If the LLC is a “disregarded entity” (single-member LLC), the IRS still treats you as the owner for tax purposes. No immediate tax impact. But if the LLC has multiple members, the transfer may trigger gift tax on the value of the property.
Mortgage consequence: Most lenders will enforce a due-on-sale clause if you transfer to an LLC. The Garn-St. Germain Act does not exempt LLC transfers. Contact your lender before transferring.
Liability consequence: Transferring property to an LLC does provide liability protection. If someone is injured on the property, they sue the LLC, not you personally. But if you guarantee the LLC’s debt or personally caused the injury, the LLC protection fails.
Questions People Ask Most Often
Q: Can I transfer property to someone who is currently in debt? Will creditors take it?
A: The grantee’s creditors can place a lien on the property. If the grantee owes money to a creditor, the creditor can record a judgment lien against the property. Later, if the grantee tries to sell, the lien must be paid from the sale proceeds. The creditor cannot take the property directly (without a judgment and court order), but they can force a sale through a lien foreclosure. This is why transferring property to someone with serious debt problems is risky—the property may end up in a forced sale.
Q: What if I sign a quitclaim deed but never record it? Does the transfer happen?
A: No. A quitclaim deed is not valid until it is recorded at the county recorder’s office. If it sits in a drawer unsigned, it is just a piece of paper. If it is signed but never recorded, it still is not valid in the legal system. Civil Code 1134 requires recording to give constructive notice. Until recorded, the transfer has not happened legally.
Q: Can I undo a recorded quitclaim deed?
A: No. Once a quitclaim deed is recorded, it is part of the permanent public record. You cannot delete it or pretend it never happened. However, you can prepare a new quitclaim deed transferring the property back to the original owner. The new deed would be recorded, and the chain of title would show both transfers. But reversing it is not automatic—the current grantee must voluntarily sign a deed transferring the property back.
Q: If I gift property to my son through a quitclaim deed, do I still owe property taxes?
A: No. Once the deed records and the county assessor updates its records, the son becomes the owner on the tax roll. Tax bills go to the son’s address. The son is responsible for paying taxes. However, if the transfer is not recorded or the assessor is not notified, you may continue receiving bills and be held liable. Always record the deed and submit the Preliminary Change of Ownership Report.
Q: What if the grantor dies before the quitclaim deed is recorded?
A: A recorded deed is recorded; an unrecorded deed is just a piece of paper. If the grantor dies and the deed was never recorded, the property goes through probate (if there is a will) or passes to heirs under intestacy laws. The quitclaim deed cannot force a transfer after the grantor dies. The deed must be recorded during the grantor’s life to be effective. This is why elderly people transferring property through quitclaim deeds should record them immediately, not weeks later.
Q: Can a notary refuse to notarize a quitclaim deed?
A: Yes. A notary can refuse to notarize if they believe fraud is occurring, if the grantor does not have a valid ID, or if the grantor appears to be signing under duress. A notary is a neutral witness, and they have the right to decline. If a notary refuses, you must find another notary. Some notaries also specialize in real estate and understand quitclaim deeds better than others.
Q: If I quitclaim property to my child, will they inherit my mortgage debt?
A: The mortgage debt does not transfer to the child through a quitclaim deed. However, the mortgage lender remains your creditor. The lender can still go after you for the debt, even though your child now owns the property. The lender will either call the loan due (due-on-sale clause) or foreclose on the property. The child must assume the loan or refinance to truly take over the debt. A quitclaim deed alone does not shift the mortgage obligation.
Q: Can I challenge a quitclaim deed after it is recorded?
A: Yes, but only for specific reasons. If the deed was signed under duress, obtained through fraud, or if the grantor lacked capacity (was incapacitated or mentally incompetent), a court may void it. But if the grantor signed willingly and was of sound mind, the deed is nearly impossible to challenge. This is why quitclaim deeds are final once recorded—the courts assume the grantor knew what they were doing.
Q: Is a quitclaim deed a valid will substitute for avoiding probate?
A: Partially. A quitclaim deed transfers ownership immediately while you are alive, so the property does not go through probate. However, if you change your mind later, you must prepare a new deed transferring it back—creating a messy chain of title. A better probate avoidance tool is a revocable living trust, where you can change your mind at any time without recording new deeds. But a quitclaim deed works if you are certain about the transfer.
Q: If I transfer property to a trust and then the trust is invalidated, does the transfer fail?
A: No. Once a quitclaim deed is recorded, the transfer is complete. If the trust later becomes invalid (because of a legal defect), the property is already owned by the trustee of the invalid trust. The property would not automatically revert to you. You would need a court order to unwind the transfer. This is why trust language should be carefully drafted by an attorney.
Q: Can I use a quitclaim deed to remove my ex-spouse from property in a divorce?
A: Yes, but only if both spouses agree and the transfer is done properly. Under Family Code 852, a quitclaim deed removing one spouse’s community property rights must include language stating the spouse understands they are giving up property rights. Without this language, the deed may be invalid, and the spouse may still have a community property claim. An attorney should draft the deed.
Q: What happens if a quitclaim deed is recorded with a typo in the legal description?
A: If the typo is minor (like a misspelled street name in a non-essential part), the recorder may accept it anyway, and the deed records. However, when you later try to sell, the title company will flag the discrepancy. You may have to file a corrective deed (another quitclaim deed) with the correct legal description. This creates a clouded title. To fix it cleanly, contact a title company or attorney to file an affidavit correcting the mistake—cheaper than a new deed.
Q: Do I need an attorney to prepare a quitclaim deed?
A: No, not legally. You can use a form, fill it out, and record it yourself. However, complex situations (trusts, multiple grantees, title issues) benefit from attorney review. An attorney typically charges $300-$800 to prepare and review a quitclaim deed. Given the stakes (permanent transfer of property), many people find this worthwhile.
Q: Can I record a quitclaim deed electronically without going in person?
A: Yes. The Los Angeles County Registrar-Recorder accepts deeds by mail or through authorized electronic recording services. By mail takes 1-2 weeks. Electronic recording (through a title company or attorney) also takes 1-2 weeks. In-person recording is fastest—often same-day to 1 week.
Q: If I gift property through a quitclaim deed, am I responsible for the property taxes after the transfer?
A: No, not after the deed records and the assessor is notified. The grantee becomes the owner on the tax roll and is responsible for taxes. But if you are still receiving bills, contact the assessor immediately. You should not owe taxes after the transfer is recorded.
FAQs
Q: Do both spouses have to sign a quitclaim deed if the property is community property?
Yes. Under California law, community property is equally owned. Both spouses must sign to transfer community property. If only one spouse signs, the transfer is invalid or incomplete. Exception: If the property is held as one spouse’s separate property (inherited, brought into marriage, or transmuted to separate), that spouse alone can sign.
Q: Can I write my own quitclaim deed, or must an attorney prepare it?
Yes. You can use a blank form and write it yourself. However, complexity (trusts, multiple grantees, title issues) benefits from legal review. Attorney drafting costs $300-$800.
Q: What if I recorded a quitclaim deed and now want to undo it?
No. You cannot undo a recorded deed. You must prepare a new quitclaim deed from the current grantee back to you (or whoever should own it) and record that. The grantee must sign the reversal deed willingly.
Q: If a property has a lien, does the quitclaim deed transfer the lien too?
Yes. A quitclaim deed transfers the property subject to all existing liens and encumbrances. The lien stays with the property. The grantee inherits the lien.
Q: How long does it take to record a quitclaim deed in Los Angeles County?
In person: Same day to 1 week. By mail: 1-2 weeks. Electronic: 1-2 weeks. Processing times vary based on county workload and document complexity.
Q: Can I gift property to multiple people using one quitclaim deed?
Yes. List all grantees on the deed and specify how they hold title: “Joint Tenants” (equal ownership with survivorship) or “Tenants in Common” (equal or unequal shares, no survivorship).
Q: Does a quitclaim deed avoid property taxes owed on the property?
No. The grantee becomes responsible for all property taxes from the transfer date forward. Any back taxes owed remain a lien against the property.
Q: If the grantor has a judgment against them, does the judgment creditor have a claim to the gifted property?
No. Once a quitclaim deed records, the property belongs to the grantee. A judgment against the grantor does not attach to property they no longer own. However, if the transfer was fraudulent (done to hide assets from creditors), a court may reverse it under fraudulent transfer laws.
Q: Can I record a quitclaim deed if I don’t have the original deed?
Yes. You can provide a legal description from the county assessor, tax bill, or title report. You do not need the original deed to record a new one.
Q: Is remote notarization accepted for quitclaim deeds in California?
Yes. As of January 1, 2024, California allows remote online notarization (RON) through out-of-state notaries. You can notarize via video call. Confirm with the Los Angeles County Recorder that they accept digital notarizations.
Q: What is the difference between a quitclaim deed and a power of attorney?
Power of attorney lets someone act on your behalf while you are alive. Quitclaim deed transfers ownership to someone else permanently. After a quitclaim deed records, you no longer own the property. Power of attorney ends when you die or revoke it.
Q: If I sign a quitclaim deed but the grantee dies before recording, does the transfer happen?
No. The deed must be recorded before either party dies to be valid. If the grantee dies before recording, the deed is still just a signed piece of paper. The property goes through probate or passes to heirs under intestacy law.
Q: Can a minor (child under 18) be a grantee on a quitclaim deed?
Yes, but with complications. A minor can receive property, but cannot legally manage it. A guardian or conservator must manage the property until the minor reaches 18. A trust is often better for minors—the trustee manages it without court involvement.
Q: Does a quitclaim deed affect my homeowner’s exemption or Prop 19 protections?
Possibly. Transferring property changes ownership, which may trigger reassessment. However, you can claim Proposition 58 or 19 exclusions (parent-child transfers) to keep the old tax base. You must file the claim timely.
Q: If I gift property and later regret it, can I ask for it back?
No legal right. Once the quitclaim deed records, the property belongs to the grantee. You have no legal claim to it. You can ask the grantee to give it back, but they have no obligation. Only a new quitclaim deed from them can transfer it back to you.
Q: Can a creditor attach a lien to property I transferred through a quitclaim deed?
No, not to you. A creditor cannot lien property you no longer own. However, they can lien property owned by the grantee (the new owner). This is why transferring to someone with creditors can be problematic—their creditors can attach liens to the gifted property.
Q: How often should I file a quitclaim deed for the same property?
Rarely, ideally once. Every recording creates a new entry in the chain of title. Recording multiple quitclaim deeds for the same property clouds the title and confuses future owners. Record once; keep the property with the final owner.
Q: If I record a quitclaim deed and the grantee never tells anyone, does it still transfer ownership?
Yes. Recording is what matters, not notification. Once recorded, the property belongs to the grantee legally, even if no one tells anyone else about it. The recording is public record.
Q: Can I quitclaim a property I own only a partial interest in?
Yes. You can transfer only your percentage. For example, if you own 50% as a tenant in common, you can quitclaim your 50% while the other owner keeps their 50%. The deed would state: “Grantor’s ½ interest as a tenant in common.”
Related reading
- Does a Quitclaim Deed Affect Property Taxes? (w/Examples) + FAQs
- What Exactly Happens After a Quitclaim Deed is Filed? (w/Examples) + FAQs
- Harris County Quitclaim Deed Requirements (w/Examples) + FAQs
- San Diego County Quitclaim Deed Requirements (w/ Examples) + FAQs
- Cook County Quitclaim Deed Requirements (w/Examples) + FAQs
- Tax Consequences of a Quitclaim Deed Explained (w/Examples) + FAQs