There are many types of deeds.  There are General Warranty Deeds, Special Warranty Deeds, Bargain and Sale Deeds and Quitclaim deeds, just to name a few.  So what is the difference?

The biggest difference is probably what the grantor is promising the grantee.  While this may vary from state-to-state, a General Warranty Deed is a big promise from the grantor to the grantee about the real property being transferred -- the status of the title.  Depending on the state, this type of deed makes the most promises about the quality and marketability of the title.  That is why a General Warranty Deed will list exceptions to the title towards the end of the deed.  For example, there may be a phrase at the end of the deed like this:  "together with all appurtenances, subject to taxes for the current year and encumbrances of record."  This is a short hand way of saying, I will make certain promises, but property taxes are paid in arrears and there may be easements granted to the utility company or a homeowners association document may limit your rights or ??? recorded in the real property records, and it is up to you to see what is of record.

On the other end of the spectrum, there is the Quitclaim deed.  Typically, a Quitclaim deed makes NO PROMISES about the status of title.  Properly drafted, a Quitclaim deed is saying I am giving you what I have, whatever that may be.  No promises.  So, listing exceptions to title, like in a General Warranty Deed, may not really be necessary.  However, some Quitclaim deeds still list the obvious exceptions. 

Some states have something called a transfer on death deed,  In Colorado, a beneficiary deed is probably the equivalent of a Colorado transfer on death deed.

In addition to any method allowed by law to effect a transfer at death, title to an interest in Colorado real property may be transferred on the death of the owner by recording, prior to the owner's death, a beneficiary deed signed by the owner of such interest, as grantor, designating a grantee-beneficiary of the interest. The transfer by a beneficiary deed shall be effective only upon the death of the owner.  A beneficiary deed need not be supported by consideration.

In Colorado, "Beneficiary deed" means a deed, subject to revocation by the owner, which conveys an interest in real property and which contains language that the conveyance is to be effective upon the death of the owner.  "Deed" means any instrument of conveyance of real property.  "Owner" means the grantor of a beneficiary deed.

It is a quitclaim deed -- not a quick claim deed.  The individual making the transfer to the new owner "quits" his or her "claim" to the real property and does not any representation that the transferor owns anything or is transferring marketable title. The grantor makes no guarantee that he is transferring good, indefeasible or marketable title. The grantor is simply stating “whatever I have I am giving to you, and nothing more.” The phrase quick claim deed came about through a misconception about the need for legal advice, i.e., that by using a quick claim deed, the parties do not need a lawyer and can make the transfer quickly.

Quitclaim deed law is state specific.  In a broader sense, real estate law is state specific.  A Quitclaim deed valid in one state may be void in another.  For example, Colorado does not require witnesses to the execution of a Quitclaim deed (or any real estate deed, for that matter).   Florida requires two witnesses to a Quitclaim deed otherwise the deed is void.   

Here is another example.  Florida recognizes something known as tenancy by the entireties.  Tenancy by the entireties is a form of property ownership between husband and wife.  However, did you know that there are at least four different versions of tenancy by the entireties across the United States?  A tenancy by the entirety will have different legal implications in different states. 

We make this point because the Internet gives people access to all sorts of information from all over the world.  However, the local governing body defines the meaning of legal terms.  The meaning of legal terminology is not uniform.  Interpreting the meaning of a legal term requires understanding how that term is used and defined in the specific locality. 

What is the difference between a Colorado quitclam deed and a Colorado warranty deed?  Well, one makes representations about the condition of title and the other does not.

In a Colorado warranty deed, the grantor (seller) makes promises to the grantee (buyer) about the condition of title.  Those promises vary based upon the particular situation.

In a Colorado quitclaim deed, the grantor makes no promises about the condition of title.  The grantor is simply transferring whatever rights he or she has in the real property to the grantee. 

Colorado imposes a state documentary tax on every person offering for recording in the office of the county clerk and recorder any deed or instrument in writing wherein or whereby title to real property situated in Colorado is granted or conveyed.  This includes transfers on Colorado Quitclaim deeds.  Technically, the Colorado state documentary tax is referred as a "documentary fee", measured by the consideration paid or to be paid for such grant or conveyance, which documentary fee is in addition to any other fee fixed by law for the recording of such deed or instrument in writing.

  The amount of Colorado state documentary tax or fee is as follows:

  When there is no consideration or when the total consideration paid by the purchaser, inclusive of the amount of any lien or encumbrance against the real property granted or conveyed and all charges and expenses required to be paid for the making of such grant or conveyance is five hundred dollars or less, no Colorado state documentary tax / fee is payable.

 When the total consideration paid by the purchaser, inclusive of the amount of any lien or encumbrance against the real property granted or conveyed and all charges and expenses required to be paid for the making of such grant or conveyance exceeds five hundred dollars, the Colorado state documentary tax / fee payable is computed at the rate of one cent for each one hundred dollars, or major fraction thereof, of such consideration.

  All Colorado state documentary taxes / fees are payable to and collected by the county clerk and recorder.

Many Colorado municipalities impose a local transfer tax on Colorado quitclaim deed transfers.  Actually, the type of deed (Quitclaim deed, Special Warranty deed, Warranty deed, Bargain and Sale Deed, etc.) does not control whether or not a local transfer tax is imposed in Colorado.  The rules of the Colorado taxing entity control whether or not a local transfer tax is imposed on the Colorado Quitclaim deed.

The Deedmonkey resource guide contains links to the Colorado municipalities that have a local transfer tax in Colorado.  The local transfer tax in Colorado is not the same thing as the Colorado documentary fee.    If a local transfer tax is due to a Colorado municipality, the clerk and recorder may require the local transfer tax to be paid before recording the Colorado quit claim deed.  The Deedmonkey Colorado resource guide will help locate the proper local transfer tax form and access a checklist for paying the local transfer tax in Colorado.  Most cities with a local transfer tax in Colorado are very helpful.  If there is an exemption from the local transfer tax in Colorado, often the Deedmonkey links will link directly to that form.  The Deedmonkey Colorado resource guide on how to record a Colorado quit claim deed or how to file a Colorado quit claim deed contains links to most if not all of the local transfer tax exemption forms in Colorado.

Besides a local transfer tax in Colorado, other entities may impose a fee on the transfer of Colorado real property by Colorado quit claim deed.  For example, Colorado real estate in a resort may be subject to a local transfer fee levied by the resort.  A Colorado timeshare association almost always has a fee imposed by the timeshare association on any transfer of real estate by Colorado quit claim deed (or other deed, for that matter).  A Colorado homeowners’ association can impose a  fee. 

How To Record A Colorado Quit Claim Deed

Learning how to record a Colorado quit claim deed is like anything else.  It is easy once you do it a few times.  Here are some key points to remember:

• Properly execute your Deedmonkey Colorado quit claim deed form. 
• Pay the transfer tax (if any) to the Colorado municipality using the Deedmonkey Colorado resource links to the appropriate city or town.
• Send your properly executed Colorado quit claim deed form to the proper county clerk and recorder for recording along with the recording fee, any documentary transfer fee, proof of payment of any transfer tax and a self addressed stamped envelope. 
• Confirm that your Colorado quit claim deed form was properly recorded.

Most Colorado counties have a clerk and recorder’s office.  That is where Colorado quit claim deeds are typically filed.  The procedures for recording a Colorado quit claim deed differ from one Colorado county to the next.  It is a good idea to use the Deedmonkey resource links to find the exact information for each county and then call the county to verify the procedure (you can access the resource guide once you purchase the Colorado quit claim deed form).  The clerk and recorder can tell you how to record / file a Colorado quit claim deed, the proper recording fee, whether a documentary transfer fee is due and whether a local transfer tax applies, but the clerk and recorder cannot tell you how to draft the quit claim deed.  So, please be polite and don’t ask that question.

Mail the properly executed Colorado quit claim deed form to the correct Colorado county along with the recording fee, the documentary transfer fee (if any), proof of payment of any transfer tax (if any) and a self addressed stamped envelope for return of your recorded quit claim deed.  While that may seem simple, many people send their Colorado quit claim deed form to the wrong county, don’t include a check for the recording fee, don’t include a separate check for the state documentary transfer fee, don’t make the check payable to the correct payee, don’t sign the check, etc.  This why it is very important to confirm your Colorado quit claim deed was properly recorded by examining the recording stamp and reception number.  Just because you mail the Colorado quit claim deed to the clerk and recorder does NOT mean that the Colorado quit claim deed was actually recorded. 

The Deedmonkey resource guide contains links to the Colorado counties and in particular the clerk and recorder’s office for most Colorado counties.  Most of these county websites have a county-specific checklist for you to use and follow.  We suggest you ALWAYS check the Deedmonkey resource guide, locate the county links and follow the instructions for that county.  When in doubt, give the clerk and recorder a call. 

Some Colorado municipalities (cities and towns) have a transfer tax.  The Colorado transfer tax is not the same “tax” as the nominal state documentary fee.  Check the Deedmonkey resource guide for a listing of those cities and towns with a transfer tax.  If a transfer tax is due, you need to find out whether the clerk and recorder requires the tax to be paid before or after you record your Colorado quit claim deed.  Many Colorado counties will require that you pay the Colorado transfer tax before recording the Colorado quit claim deed just to be sure you pay the tax.  You can use the Deedmonkey Colorado resource guide to obtain the proper Colorado transfer tax form, access the municipality’s checklist for paying the Colorado transfer tax and to call the municipality to confirm the procedure.  Most cities with a Colorado transfer tax are very helpful as long as you are polite and do not ask them how to draft the Colorado quit claim deed form.  Most municipalities also have a Colorado transfer tax exemption form for specific transfers that are not be subject to the Colorado transfer tax.  You must download that municipality’s transfer tax exemption form to see if your transfer by Colorado quit claim deed qualifies for the exemption.  The Deedmonkey Colorado resource guide on how to record a Colorado quit claim deed or how to file a Colorado quit claim deed contains links to most or not all of the Colorado transfer tax exemption forms.

Besides a Colorado transfer tax, other entities may impose a fee on the transfer of Colorado real property by Colorado quit claim deed.  For example, Colorado real estate in a ski resort may be subject to a transfer fee levied by the resort.  A Colorado timeshare association almost always has a fee imposed by the timeshare association on any transfer of real estate by Colorado quit claim deed.  A master homeowners’ association may impose a transfer fee pursuant to the recorded association documents.  While these fees may not be imposed or monitored by the county clerk and recorder, failure to pay these fees can cause some problems for both the grantor (the person transferring the real property by Colorado quit claim deed) and the grantee (the person(s) receiving the Colorado real property).