What is a Deed Transfer Form?
In North Carolina, a deed transfer form is a critical document in the buying and selling of land. A deed transfer form serves as the legal basis of transferring ownership and interest of a piece of land or real estate from one party, usually the grantor or seller, to another party, usually the grantee or buyer. It is important to note that in certain counties, such as Wake, the county has a written policy mandating a five-year interest examination on all titles. Moreover, a title insurance policy is a good idea if not required by lenders requiring title insurance. The deed transfer form is the most common method of transferring real property, and it is important that it be completed correctly and in accordance with North Carolina law.
When purchasing a piece of real estate in North Carolina , a deed transfer form should be filed with the appropriate register of deeds within a given county in North Carolina. When a deed transfer form has been properly filled out and filed, it serves as a public notice and creates a presumption of the current ownership of the piece of real property in question. A deed transfer gives public notice of encumbrances and other information about the piece of real property, such as taxes owed, which are noted on the public record of the register of deeds. It is important to keep in mind that depending on how the deed transfer forms are completed, it can immediately transpose ownership upon filing or so some other date such as the effective date on the face of the deed.
A deed transfer can also limit the grantor’s interest in the property or may infer the creation of an express trust created with the recording of the deed transfer form.
Types of Deed Transfers in North Carolina
Deeds can be transferred in several different forms, and there are different deeds used for different purposes. The most commonly used type of deed is known as a warranty deed in which the grantor (seller) promises that they have clear title to the property. Quitclaim deeds in which the grantor does not guarantee that they have clear title to the property are commonly used between family members or in other situations where no warranty protection is needed. An example may be a situation where property is transferred to a minor child. The grantor is not concerned about title issues after the transfer as the parents normally retain control over the property. Special warranties deeds are the middle ground in which the transferor (grantor) guarantees that he has not encumbered the property during his period of ownership. A special warranty deed may be the right choice when transferring property to your children if you are not certain but that the record title is clean. However, the best choice may be a title insurance policy under which a title company researches the record chain of title and then insures the owner against an unintentional defect in title. A title company can even insure a client against a defect in the chain of title created by a prior owner, and sometimes this is a better alternative than a warranty deed.
How to Complete a North Carolina Deed Transfer
To complete a deed transfer, first go to a local real estate attorney or law firm to initiate the paperwork process. You will need to pay filing fees to the Register of Deeds office to legally complete the transfer. This handles the filing of public record; it does not necessarily handle all issues related to the property or who has rights to it.
To complete a deed transfer, you will need the current title deed for the property, a signed and notarized real estate transfer document, the filing fee for your county, a "statement of consideration," as well as a "list of all addresses which the grantor and grantee have lived within the last 30 years," and all real estate tax IDs (PID or PIN) and parcel IDs that apply. You will need to search public records in the Register of Deeds office, particularly the real estate property records. This will show you the current deed holder’s deed until it is formally transferred. The property will be on the list of deeds, including parcel ID number/PID or PIN that is assigned to it. This is often easy to find as it will be listed with the last names of the owners. This is why it is essential that all information be correct in the transfer document.
The Register of Deeds will assist grantees and grantors in filling out the property deed transfer form, along with gathering all required information. After gathering all of this information, visit your local Register of Deeds office to process and file the deed. If you are the grantor, you will need to pay the filing fee to complete the deed transfer. You will also need to file any other forms required by the Register of Deeds office for your county. If you fail to do the register properly, the property will not be legally transferred. It is important to note that the County Tax Assessor will only accept the deed if there is a date and stamp from the Register of Deeds office. Required documents include the following:
A deed transfer typically requires fees, 45 days to file and process, and several forms, making the process rather involved.
Common Problems & Mistakes in Deed Transfers
It is also important to make sure the right notary public witnesses the signing of the deed. The witnesses do not have to be the same ones who were present when the deed was prepared. Sometimes people get in the wrong line at a closing and sign the wrong document, or sign too early or too late. Under North Carolina law, the notary (or other qualifying officer, such as a clerk of court or other designated county official) is required to watch the signers actually sign the deed. If he or she witnesses the signers signing another document that is not the deed, that is not enough.
Another common error is failing to record in the right place. In North Carolina, if the deed is for property located within a city, it must be filed in the city or county in which the property is located. If it is outside a city, it can be filed in either the county in which it is located or in the county in which the deed is registered.
While a deed is valid when signed by the seller, witnessed and notarized, recording is what gives it legal effect. That is what gives the world notice of the change of ownership. A deed is not effective against a third party until it is registered . So, in a situation in which a seller signs several deeds and gives them to family members for recordation, but the family members fail to record them, a later purchaser who buys from the seller will take the property free and clear of all claims of the beneficiaries of the unrecorded deeds. This is true even if the purchaser knew of their existence. As long as the purchaser’s deed is recorded first, he or she will "win the race to the courthouse" and take title to the property.
The common law rule of "first in time, first in right" has been modified by the Recording Act (N.C. Gen. Stat. § 47-18), which provides that a deed is "a conveyance of property in this state," and "shall be a lien on the property conveyed only when the instrument is registered." However, the Recording Act does not apply to any interest that is "protected by actual possession."
In short, if a deed is signed, witnessed, notarized, delivered by a conveyancer who owns the property and accepted by the grantee and the other deeds are actually recorded first, a third party buyer will own the property even if he or she knows of the existence of the deeds.
Legal Help & Resources
Homeowners should consult with a real estate attorney when there are unique considerations regarding the selling or transferring of their property. If there are conditions of the sale that may present legal implications or requirements, an attorney should be consulted to ensure a seller is abiding by all relevant laws. Additionally, an attorney may be required if there are questions regarding the validity of a deed transfer, or if there are claims by co-owners or personal representatives of the estate of a deceased co-owner. There is legal aid in Durham, Wake County, and Granville County. The North Carolina Bar Association and the North Carolina State Bar Association provide additional resources. The District Attorney’s Office and Crisis Center provide legal assistance for victims.
Common Questions on Deed Transfers
How long does it take to transfer a deed?
In North Carolina, it is a relatively quick process. There’s generally no "waiting period." Once a signed deed is received, it can be recorded fairly quickly. Nothing is actually happening with the deed once it is signed until it is properly recorded with the county Register of Deeds. If you’re filing for state and federal tax withholdings, there might be a little longer delay. But overall, it is a fast process.
Can I transfer my deed without an attorney?
Keep in mind, an attorney only needs to help with the deed transfer if there are new owners added to the deed. If you just want to add a spouse to your current deed, you might be able to find some free resources online to do this yourself—there will be a small fee to file the form, however.
What happens if the deed isn’t filed?
The property technically isn’t transferred until you file it with the Register of Deeds office. So if you fail to file it , you still technically own the property and your spouse would have no legal rights to the property. If you need to sell your property, you will need to file the deed before you can close the sale.
What if my spouse doesn’t own other real estate?
You and your spouse may have to pay a state tax withholding if they earn more than $260,000 a year. If they don’t, the withholding is likely not required. This withholding requirement is not uncommon for other states, but is a unique provision for North Carolina.
Will transferring my deed have tax consequences?
There should not be any tax consequences if you are transferring your real estate from yourself to yourself and your spouse or from your spouse to yourself. So if you’re adding your spouse to the deed, or vice versa, there should be no liability.
You might have a capital gains tax liability, so it is good to consult your accountant or tax advisor. When your spouse dies, however, you will want to consult an estate planning attorney in case there are unique circumstances that might require specific estate planning provisions.
