P18 – Quit Claim Deed – South Carolina
0:03
Hi, this is John Jay, and I’m going to share one little tool process with you here that could save you tens of thousands of dollars, maybe more, in a real estate transaction.
0:13
Now, I’m not going to explain why you would use this, I just want to tell you that the technical aspects of preparing this document, you can do this a few days before the closing on real Estate.
0:22
You can do this today when there is no even sale date. You can do this before you list the property. You can do this right after you buy some real estate. You can, you can dede over the property.
0:32
Sometimes I’ve found it’s easy to buy real estate in your individual name and then file a quitclaim deed afterwards.
0:39
I’m going to show you how to file a or prepare a quitclaim deed. And I’ve chosen the state of South Carolina because someone asked me to do that.
0:48
So, I’m going to share my screen here.
0:50
I’m gonna show a simple, this is how I did this, OK, so, sure.
1:02
Should put it back here, OK, all right.
1:06
So what you see here is quitclaim deed.
1:10
And to show you how simple I was able to fly simply, I was able to find this, I’m going to do a backspace here on my browser and show you that all I did was go to my favorite search engine, Duck Duck Go. And I typed in South Carolina, quitclaim deed and abracadabra. It was the first one that showed up.
1:30
And let’s go back to where I was.
1:34
So, Quitclaim Deed is going to be used to quit a claim on real estate. The title to real estate.
1:42
It has to do with equitable title.
1:44
I’m just moving the name of the property, the name of the owner of the property of record. OK, So let’s say I own the property.
1:50
Let’s say John Smith owns the property and I’m going to move it over to a company or a trust or whatever, purpose.
1:57
What I would have to do is, the exact name, as it appears on the title, I will look at this document and I’m going to, to type that out now All caps. You guys freak out over all CAHPS and not all CAHPS. I’m not going to argue with you on that.
2:09
I’m just going to say, I’m just using all caps. You guys can do what you want.
2:14
I don’t think it matters.
2:15
OK, so, the grand tour is the person who’s conveying the title, giving the title over the current owner, if I’m going to do this, for whatever reason, I just want to title in the name of a limited liability company, let’s just say, so, the name of this company just happens to be, let’s call it 123 Elm Street kinda liked that idea, OK.
2:37
That’s the name of my company.
2:39
It could just as well be macdonalds, OK, I’m just choosing this name.
2:43
Sometimes I want to use the street address because it’s so unique, OK? There are certain, there’s certain strategies here, but I’m not going to get into that too much.
2:52
And you can give whatever information on the identity of the grantee, but really, um, the name is the most important.
3:01
So make sure you get that correct and the proper designation, in this case it’s an LLC This is the exact name of the titleholders.
3:10
So make sure you get that right OK, because someone who’s not the title holder cannot convey it to the grantee, So the Grand Tour’s, the title holder today The grantee is the new title holder.
3:21
So, what happens is, I’m going to have to, I should probably, before I do this, I should probably go back to my quitclaim deed OK. That I was given at the closing when I bought the property.
3:33
It’s gonna look just like this for if I’m in South Carolina.
3:36
And so I can take the information like the tax map number that’s probably on the previous quitclaim deed.
3:44
Um, today’s date, the county, of course, and in which city.
3:50
All right. Sometimes you’re outside the city, but that’s OK.
3:54
Then this really should be an address. At the top. Left corner should be an address where you can receive the original. So, the Clerk is going to fix a seal up here, or a stamp, or a time-stamp.
4:04
The Recording Time, Book and page.
4:07
It’s going to be in the top right corner, so that’s why they’re all the spaces here.
4:10
And then, once that gets processed, scanned image, whatever.
4:15
The original gets mailed back to this address. Now, you really should keep the original. And sometimes it’s worth it to put it in a safe, or safekeeping. just like it’s money.
4:23
You can lose the original forever anyway, it could be gone forever, and you can always go to the county Recorder’s office and get a certified copy of the original or of what’s on the record, But you may not ever have the original, so it’s good to have the original, but don’t freak out.
4:36
If you don’t have the original, OK, a certified copy is just as well.
4:41
So, anyways, that’s the idea behind this.
4:44
It’s that simple.
4:45
I mean, you know, if I’m just doing it for estate planning purposes, I might just put 1, 1, 100th dollars, I don’t know. One out of one hundred, $1, $10, whatever.
4:59
I know it doesn’t really matter that there should be a sum of money That constitutes consideration for the conveyance.
5:07
If I’m conveying for state planning purposes, and many jurisdictions, if I put anything more than zero, they’re gonna call, they’re gonna call it a sale.
5:14
So, what I may want to do is put NA here or zeros Every county a little bit different, or, I should say, every state is a bit different.
5:22
So sometimes you do not want to show consideration if it’s a gift or if you’re just conveying it for estate planning purposes.
5:31
So here’s the description of the property now.
5:33
If you don’t know what the description is, you want to go get a legal description of the property.
5:39
The way to find it is the Taks Appraiser’s office.
5:41
We can actually go to another browser window, and I can search on South Carolina, name of the county, and I can search on tax Appraiser’s office, and I can click on the actual, like street address, and open a profile, and there should be a legal description of that physical address, the mailing address. There’ll be like a lot number and all those things as a legal description, or I have it, like maybe I have in my hand, and I can just read it very, very carefully and transcribe it onto this document. So we have to describe the property.
6:16
Somehow, you need to get that.
6:17
So the plot is recorded in plot book, page number.
6:20
You’ll get this from county records, it’s already there, OK? That’s on your tax appraiser’s website.
6:27
And, you know, you can also, if you don’t have your deed, if you’re trying to do this and go off your old deed, your previous Deed, and you don’t have it, All you have to do is go to the county recorder’s office and ask for a copy. And I think it’s like $1 page. So you can do it by mail, or in person, or by phone sometimes.
6:43
And, again, we just go into describing some of this information.
6:48
Just fill it out, Right?
6:51
And these are your standard terms.
6:55
OK, we’re going to, we’re going to quit the claim.
6:58
That’s what this is doing.
6:59
This little clause, here’s quitting the claims, so no, no, no one else has a claim. It’s already changed. Everything has changed over.
7:05
All right.
7:06
This is for attorneys. We don’t know, you don’t need an attorney. And so I’m showing you how to do this.
7:11
And it looks like this is two pages. So down here is what’s called a ….
7:14
And it’s where a notary is going to notarized this. So that would be an officer of the court.
7:20
Alright, someone who can witness a signature that is recognized by the court, notary public is a great way to do it.
7:26
Grand tour grantee.
7:28
If you’re the grand tour, let’s say John Smith is the grand tour, and let’s say this is my company, I can actually sign.
7:34
But when I sign for the company, I would sign with a title, like I would sign as authorized signatory, or managing member. Something like that.
7:43
I would sign Vice President, I could sign like that for this LLC, and then for here, John Smith, I’m just signed individually. So I would just sign my name.
7:52
Like, I always do, make that distinction.
7:55
And if you forget that, it’s not the end of the world, OK? But I’m just saying to be technically correct. It’s a good idea to use a title in that case.
8:01
And of course, here we go, type in your county name. Now, this is pretty interesting because I can actually download this.
8:08
And when I open it, I don’t know if you guys can see this, but it opens, and I can still edit this document. So that allows me to save it into a folder on my computer, and I can edit it whenever I feel like it, and I can edit it and prepare and send it to somebody.
8:23
It’s kinda cool. I could probably edit the document here.
8:26
Of course, I cannot do anything where it requires a notarized witness while it’s online, At least, not yet. I mean, really.
8:34
So I still have to leave this kinda blank.
8:36
Or maybe I can enter the information here, and then I can print it out and then go take it to a notary and have the notary fix, the seal down here, OK, See how that is. You guys have seen this before.
8:47
So that’s it.
8:48
So the moment you take this to the county for recording, and it gets recorded, that means the clerk stamps, uh, whatever, a time-stamp on the top right corner over here.
9:00
That makes, that makes the property no longer John Smith and it becomes the grantee’s property at that moment.
9:07
OK, that’s important, and because we, we had a case recently, it was maybe a year ago, and we had conveyed the title of some property.
9:14
It was almost exactly a week before a judgement Lien was recorded against this person.
9:20
And had she not conveyed it a week earlier, that judgement Lien would have stayed on the title.
9:27
And even if she conveyed it, the judgement lien would have still been connected to the title. It was still been a lien on the title.
9:34
Even if she, she could still convey it, is just the lien doesn’t, doesn’t go anywhere it stays on the, on the title, but because she conveyed the title with a quitclaim deed before the someone else recorded a Judgement Lien, She was in the Clare and they didn’t like that. At the Title closing, they tried to trick her into paying the debt.
9:53
And we told them, we told the attorney, no.
9:56
You can’t travel back in time and attach a liability to something that wasn’t attachable, So, they kinda shut up after that. So, anyways, that is a very simple version.
10:06
The technical aspects of filling out a quitclaim deed, I do have a video I did. I did another one just like this for California.
10:12
And the reason why I use California’s because there was an exemption form I wanted to show you, where in California, there’s what’s called a documentary stamp tax. That’s assessed on the value of the property.
10:22
So, they usually priced it out something like $1 per $500 value, You have to pay in addition to the filing fee, like 20 bucks, so it’s 20 bucks plus, like $12,000.
10:33
You know, it depends on what you’re doing there, so I don’t know of South Carolina is like that, you can go look in your state statutes or just go to your Tax Appraiser’s website and see if there’s some mention of a, I guess it would be a millage rate for conveying the property.
10:47
And if you’re doing this for estate planning purposes, which means John Smith is the title holder, and he’s conveying it to this LLC in which John Smith is the single member manager, let’s just say. Keep it simple now.
11:01
There would not be any tax, the documentary stamp tax, because it’s exempt from that since there is no change in beneficial interest. And that was what I was demonstrating for California. So if you If your state has something like that, I know Florida does.
11:15
you can ask the clerk, or sometimes they’re very cryptic, they don’t want to tell you. You can go find out.
11:20
There’s usually a checkbox form that shows that it’s exempt from the the stamp tax. It’s not a Capital Gains Tax. It’s a it’s a stamp tax based upon the value of the property at the time of day at the time of the conveyance.
11:34
So enough of that hope you can use that tool very easily. Again, you can just, luckily, we get a search on the internet most of the time, if not, we have to dig a little bit more. Sometimes we have to get a generic quitclaim deed. You can go to Legal Zoom. You can find a generic quitclaim deed on the internet. You can actually create one. If you’re good at making documents, you can create one. It doesn’t have to be fancy. It doesn’t have to have all these markers in lines and make it all Purdy and stuff.
11:59
You just have to identify the properties, say what’s happening, give the consideration or explain how it’s being conveyed and have it notarized.
12:07
OK, Thanks for what?