Top 3 Reasons Why You Shouldn’t Use A Quitclaim Deed To Transfer Title

Photo Credit: Unknown

Photo Credit: Unknown

Let’s take a moment to address the differences between a Quitclaim Deed and a (Special) Warranty Deed. There are several points to consider when choosing the correct deed to use for a title transfer. When you look at the differences between the deeds and scenarios for which each is best suited, you might reconsider using that Quitclaim Deed to transfer title.

Quitclaim Deeds: Why They Stink.

A Quitclaim Deed (often mistakenly referred to as a “quick claim” deed) is a popular instrument for title transfers. However, when choosing a deed its popularity should not be a determining factor! Many different deeds will convey title to real property, each will be useful for different situations. One of the most important things to keep in mind when choosing a Quitclaim Deed is that it doesn’t even say whether or not the person conveying title owns the property! The grantor offers no “guarantees” as to their ownership interest in the property or the condition of the title, which brings us to reason number 3…

Reason Number 3:  NO GUARANTEES.

Although a quitclaim deed does convey title, doesn’t make any other guarantees, warranties or assurances. Basically a quitclaim deed says this:

“I don’t promise that this property has a clean title, or even that I own it at all! Whatever interest I may have in the property I’m giving to you. If you find out later you don’t have a marketable title, you can’t sue me! I didn’t promise you anything! Bwahahahaha!!!”

Okay, maybe that’s a bit dramatic… but you get the point! Many bloggers and “experts” (sometimes even real estate attorneys or a divorce court) might advise you to use a quitclaim deed. Lots of people have used them to transfer property into or out of a trusts, limited liability companies, between husbands, wives and family members “because you don’t necessarily need such strong guarantees in that situation”. Well that may be true, but it’s certainly not the only thing to think about.

Reason Number 2:  THE “SUBJECT TO” SUBJECT.

You might think that a you have to use a quitclaim deed because the property isn’t “free and clear” from liensNot so! This is probably one of the more common misconceptions we’ve heard regarding quitclaim deeds (and Warranty Deeds). The argument goes something like this:

“Well I can’t use a Grant Deed, Warranty Deed or a Special Warranty Deed because those documents say the property is free from liens… I have a mortgage on the property so I have to use a quitclaim deed!”

Well, that’s almost true. Warranty Deeds and Special Warranty Deeds do contain verbiage that makes some sort of guarantee as to the condition of the titleWhat they actually say, however, is that all existing claims have been disclosed. Warranty Deeds do not say the property is “free and clear”.  You see, each deed has a section that contains “subject to” verbiage. In the “subject to” section of the deed, certain elements are called out as being part of the transfer. A typical example of “subject to” language is as follows:

“SUBJECT TO: Current taxes and other assessments, reservations in patents and all easements, rights of way, encumbrances, liens, covenants, conditions, restrictions, obligations, and liabilities as may appear of record.”

This is significant because any liens that are recorded in the public record are “part of the package”. The grantee has no legal recourse to go back to the grantor because of a lien on the property he didn’t know about, so long as it was properly recorded (and therefore disclosed). When you purchase a title insurance policy, the title company will do a title search and list everything they find on the “Schedule B” section of the title commitment.


Many title examiners will not accept a prior conveyance made by quitclaim without additional documentation signed by grantor. Remember, a quitclaim doesn’t guarantee anything! So when a title officer sees a quitclaim deed in the chain of title, they may question whether or not the grantor in the quitclaim deed had something to hide. Imagine how difficult it would be to track down an ex-spouse or trustee of a trust (who’s probably out of the country or deceased) so they can sign off on this property, again… just clear up the chain of title because the title officer doesn’t like the quitclaim deed. Now this is holding up the escrow! People want to move in and unpack! People want their money! If you don’t have anything to hide, why not use a stronger document? Here’s a good one that you can use in almost every state: The Special Warranty Deed.

Want to know when quitclaim deeds are supposed to be used? Check out this article!

Escrow Agent or Certified Legal Document Preparer?

When are the Services of a Certified Legal Document Preparer (CLDP) preferred over an Escrow Agent?Legal Papers

The services of a real estate Certified Legal Document Preparer [“CLDP”], also referred to as a Legal Document Assistant, are a great resource to anyone who owns or has an interest in real estate.  Many property owners and investors are unaware of this option or understand when it is a good idea to employ the services of a CLDP rather than an Escrow Agent.   Let’s try and shed some light here so you know what your options are!

If you are purchasing or selling real property where money is to be placed with a third-party and title insurance is required, then you are looking for an Escrow Agent. It is in an escrow that all terms of a transaction are clarified and an Escrow Agent acts as the fiduciary to all parties holding funds and documents. In an escrow transaction, the Escrow Agent, orders a Title Search contacts and requests a Payoff Statement from Lenders and prepares a Settlement Statement for all parties to review, sign and approve.

Often times, full escrow services as described above are not needed.  A CLDP will prepare one or all of the documents that are normally produced in a real estate transaction, regardless of whether or not a title insurance policy is to be issued.  In other words, a CLDP will focus on only the documents requested, and makes no requirements that the customer must purchase additional products or services.  As a result, the costs for obtaining documents are substantially reduced limiting the fee charged only to the items requested.  Title Insurance can be made available, as well as the other services, but are not required.

We advocate obtaining title insurance when necessary. Some situations however, such as adding a spouse to title, transferring property into your family trust, or recording a Power of Attorney to be used in connection with real estate purchases/sales, (just a few examples), the cost of a new title insurance policy outweighs its benefits.

Your CLDP can assist you with the preparation of Promissory Notes, Deeds of Trust, Release of Liens (Full and Partial), Affidavits of all Types, Deeds in Lieu of Foreclosures, Road Maintenance Agreements, Quitclaim Deeds (sometimes mistakenly referred to as “Quick Claim” Deeds), Special Warranty or Warranty Deeds, Beneficiary Deeds, Power of Attorney, Agreements for Sale, Subordination Agreements – to name a few.  Arrangements may also be made for additional services such as loan servicing.

The next time you are contemplating a matter that involves real estate and legal documents, consult your Legal Document Preparer to see how they can assist you in accomplishing your goals.

What is an Affidavit of Property Value in Arizona?

Legal Documents - Business Papers

Affidavit of Property Value

An Affidavit of Property Value is form created by the Arizona Department of Revenue, and is required by law (ARS § 11-1133) to be recorded simultaneously with any deed transfer, unless you have a proper exemption code.

What exactly does the Affidavit of Property Value do?

Sometimes referred to as simply an “Affidavit of Value” or simply “APV”, the purpose of the Affidavit is to disclose information about the sale of real property. Whenever property is sold, the actual transfer is made public record by recording a deed. When the deed is recorded with the County Recorder‘s Office, an APV must be recorded at the same time to disclose information such as:

  • Parcel Number
  • Seller/Buyer Name and Address
  • Relationship between Buyer and Seller (if any)
  • Property Address
  • Where to send the Property Tax Bill
  • Type of property (Single Family Residence, 2-4 Plex, Commercial, etc)
  • Sales Price
  • Method of Financing
  • Any Personal Property included in the sale
  • Any Solar / Energy Efficient Components

After recording, this information is made public record. It is available for anyone to see, and is used as a basis to determine property taxes, establish value for comparable sales and more.

How do I file it?

  1. The form must be filled out completely, signed and notarized by both the Seller and Buyer (or their respective Agents) and attached to the deed when submitted to the county for recordingNote: If you’re mailing in the Deed and Affidavit for recording, make sure you first check to see what the recording fees will be! The cost is usually based on the number of pages and whether or not an Affidavit of Property Value is required.

When is the Affidavit not required?

There are several scenarios that exempt the requirement of recording an Affidavit of Property Value. Here’s some of the most common situations you don’t have to file an APV, and the applicable exemption codes:

  • A transfer that confirms or corrects a previously recorded deed(ARS § 11-1134 B-2)
  • Transferring property between parent and child or husband and wife, with only nominal consideration (payment) for the transfer. (ARS § 11-1134 B-3)
  • Transferring property from a person to a Trustee, or from a Trustee to a trust beneficiary with only nominal consideration for the transfer. (ARS § 11-1134 B-8)
  • Adding a spouse to create an estate in “Community Property with Right of Survivorship“. (ARS § 11-1134 B-10)
  • When recording a Beneficiary Deed(ARS § 11-1134 B-12)

These are only some of the more common scenarios. A complete list of the exemption codes can be found in Arizona Revised Statutes. Or, here’s a PDF file with the exemptions along with a short explanation of each.

So what do I actually type on the deed?

(“Help, my deed was rejected!”)

If you have determined that your deed transfer is exempt, simply type or legibly print on the face of the deed something like this:

This transfer is being made to establish an estate in Community Property with Right of Survivorship with only nominal consideration for the transfer  and the Affidavit of Property Value is exempt pursuant to ARS § 11-1134″

Really, you can even shorten that to something like Affidavit Exempt per ARS 11-1134-______”, inserting the proper code.

Where do I find the form?

You can either download a blank copy of the DOR FORM 82162 (01/2012) Affidavit of Property Value (click to download), or we will be happy to assist you in the preparation and recording of your Deed and Affidavit! You can check out our online product page, give us a call at (855) DOC-EASY or send us an email for more info.


April 22, 2013 is Earth Day! Here’s a few things we can all do to help.

Earth Day 2013

Monday, April 22, 2013 is Earth Day!


How can you partner with us to help out and save money? Easy!

At, we strive to be green whenever possible! 
We take electronic signatures from our customers whenever possible. We electronically record our documents in every Arizona County. Professional Escrow Resources, our Certified Legal Document Preparer has streamlined in house processing to minimize the amount of hard-copy paper required for each transaction.


That’s why in recognition of Earth Day 2013, we’re offering a 15% discount on all of our document preparation services if you choose electronic delivery of your docs!


Maybe you’ve been looking for the right time to add your spouse to title, but you don’t know the best way for your State. Ask us if you can use an Acceptance of Community Property with Right of Survivorship with your deed.


Maybe, you want to transfer some investment property into your LLC, but your’e not quite sure how to do it. Send us an email, and we’ll walk you through it.


Perhaps you need a Promissory Note or Deed of Trust to secure a lien on your property. Give us a call, and we will take care of everything.


All week long, we’re giving 15% off all electronically delivered documents. If you order online, just use Coupon Code: 15PFOREARTH13. If you call or email, just let us know and we’ll be sure to apply the discount. Let’s work together to save some our natural resources and some money, too!

Call today! 855-362-3279

Transferring Title to a Business Entity: Disclosing Type and Domocile

Legal Documents - Business Papers

How do I transfer property to my business?

(Transferring title to a business entity)




We’ve recently been asked to clear up a few things about how to transfer title of property to a business entity, and more specifically, how to disclose the vesting of a business entity on a deed when transferring title. At it’s our job to do such things, and we love our job, so we thought we’d share.

Ok, I have my deed, I know who the grantor is… how do I refer to my business?


This is where things get tricky. I had someone the other day give me the name of their business to use as the “Grantee” on our deed. We’ll call it “INVESTMENT INDUSTRIES, LLC”. Sounds good, right? Except when I tried to verify that name with the Secretary of State (actually in this case it was Arizona, so it was the Corporation Commission) they had no record of the name. When I went back to the customer and found out he had never registered his entity. He simply made it up and applied for a Federal Tax ID number!

What if I hadn’t checked!? What if “INVESTMENT INDUSTRIES, LLC” was someone else already, and we just recorded a deed into their business!? Needless to say, this could cause costly problems down the road.


Here’s another common mistake, as stated in an email from one of our customers:

“The Deed would transfer title to the referenced property to “ABC LIMITED PARTNERSHIP”.  There is no need to include “a Canadian Limited Partnership” on title to the property.” 


People often assume they know what is and isn’t required to disclose on a deed… but just for kicks, let’s see what a Title Officer has to say about it.


Here’s his reply:

“No, if the domicile and entity type are not disclosed then there is question as to whether or not it is an entity capable of holding title.  It can be left off but they will have problems later. We would not insure the deed without the business entity type and domicile being disclosed.”


As you can see, it often pays to consult with an expert! Keep in mind the county recorder‘s office will not call these mistakes to your attention. The onus is on you to make sure the document is correct.

So bottom line, how should the grantee vesting read? Like this:

DOCPREPPER PROPERTIES LLC, an Arizona Limited Liability Company



Aaron Scott of Professional Escrow Resources

Aaron Scott, Professional Escrow Resources

First give the complete legal name of the entity (it’s best to verify this with the Secretary of State / Corporation Commission), then the domicile (State the entity was formed in) and type of entity (LLC, Corporation, Partnership, etc.). That’s it! Do it correctly and save yourself the hassle of fixing it later.

Of course, you can always contact us for additional information or to place an order. You can always call and ask for me, Aaron Scott, or any one of our document preparation specialists. We’d be happy to help!