A quit claim deed, sometimes incorrectly referred to as a quick-claim deed, is a legal document that transfers the owners interest (the grantor) in real property, to a new owner (the grantee). The grantor thus quits his right to the property. Hence the name; quit claim deed.
Pursuant to Florida Statute Section 201.02, a documentary stamp tax is imposed on all documents that transfer interest in Florida real property. Examples of document that may transfer interest in real property include: warranty deeds, deeds in lieu of foreclosure, and quit claim deeds.
There is a common misconception that a quit claim deed is not subject to documentary stamps. This is incorrect as the quit claim deed is a transfer of interest in property. Quit claim deeds are commonly used when the parties have an existing relationship with each other and they are aware of the grantor's ownership; for example property transferred during divorces, gifts from family members and transfers to/or from trusts or LLC’s. More traditional property transactions where the buyer and seller are not related parties typically utilize a general warranty deed.
The quit claim deed differs from a general warranty deed, in that a quit claim deed contains no title covenants whatsoever. The grantee is only entitled to acquire the same interest that the grantor actually possesses at the time of transfer. In comparison, a general warranty deed contains warranties from the grantor to the grantee that the title is free and clear of any encumbrances and that they actually own full interest in the property.
For example, if you receive a quit claim deed from a grantor for Central Park by a grantor that has absolutely no interest in Central Park, you are entitled to absolutely nothing, as they had no interest to the property to convey. The grantor does not have to guarantee that he actually owns the property at the time that it is transferred.
Quit claim deeds are commonly used instruments and they do fall under Florida Statutes as a transfer that requires the documentary stamp tax. However, some transfers, including certain transfers from nonprofit organizations, transfers made pursuant to a qualified domestic relations order (QDRO), and certain transfers from a partnership to its partner(s), may qualify for exemption from such documentary stamp tax.
