A Delaware quitclaim deed transfers whatever interest the grantor holds in a property to the grantee, with no promise that the title is clean or that the grantor owns anything at all. To make it effective, you fill in the required information, have the grantor’s signature notarized, complete the state Realty Transfer Tax Return, and record everything at the Recorder of Deeds in the county where the property is located. If your paperwork is in order, it can be done in a single trip.
What Information the Deed Must Contain
Several pieces of information have to appear on the document before the recorder’s office will accept it.
- Full legal names of the grantor and grantee, exactly as they appear on government-issued identification. If the grantor’s name on the current title differs from their current legal name, include both.
- The grantee’s mailing address. Delaware law requires it on every recorded deed so the county can route property tax bills, and leaving it off can get the deed rejected.
- The legal description of the property, copied from the most recent deed in the chain of title. This is a metes-and-bounds description, a lot-and-block reference, or both. A street address alone is not enough.
- The tax parcel identification number, found on the property tax bill or in the county’s online parcel records. Kent County charges $5 per parcel number listed, so getting it right the first time matters.
- A “prepared by” statement with the name and address of whoever drafted the document, on the first page.
- The consideration given for the transfer. For family transfers and gifts, this is commonly stated as “one dollar and other good and valuable consideration” or similar nominal language.
Signing and Notarization
The grantor signs the deed and has the signature acknowledged before an authorized official. Delaware allows acknowledgment before a notary public, any judge in the state, two justices of the peace from the same county, or the Mayor of Wilmington.1Delaware Code Online. Delaware Code 25 – Chapter 1 Deeds A notary is the usual choice, and banks, shipping stores, and law offices commonly offer the service. The grantee does not have to sign, though some forms include a line for acceptance.
Only the grantor’s signature is notarized. When joint owners are transferring together, each one signs and each signature is acknowledged separately. Witnesses are not required by Delaware statute, but some recorders prefer them, and having at least one witness sign can head off questions later.
The Realty Transfer Tax Return
Every deed presented for recording in Delaware must be accompanied by Form RTT-TAX (formerly Form 5402), the Realty Transfer Tax Return and Affidavit of Gain and Value.2Delaware Division of Revenue. Realty Transfer Tax Return and Affidavit of Gain and Value This applies even when no money changes hands. If the transfer is exempt from the tax, you still complete the form and explain the exemption in Part C.
The form asks for the consideration paid (cash, assumed mortgages, and any other value exchanged) and the property’s highest assessed value for local tax purposes. The tax is calculated on whichever number is greater.3Delaware Division of Revenue. Realty Transfer Tax Return and Affidavit of Gain and Value For a gift transfer with no real consideration, enter the assessed value. If you are claiming an exemption, cite the relevant subsection of 30 Del. C. § 5401 and skip the tax payment.
The Tax Rate
The combined state and local realty transfer tax in Delaware is typically 4% of the property’s value. The state imposes 2.5%, and most local governments levy the full 1.5% they are authorized to charge. The tax is split equally between grantor and grantee, so each side pays 2%.4State of Delaware. Transfer Tax Rate If no agreement exists, the burden falls on the grantor by default.5Delaware Code Online. Realty Transfer Tax No tax is imposed when the value of the property transferred is less than $100.
Properties located inside Wilmington city limits face an additional local transfer tax. Anyone claiming an exemption from the Wilmington portion must file the city’s own Affidavit of Exemption, which is a separate form from the state RTT-TAX.6New Castle County, DE. Transfer Tax The form is in the City of Wilmington’s document library.7City of Wilmington, Delaware. Forms and Applications Library Forgetting it is one of the more common reasons Wilmington deeds get bounced.
Common Exemptions
Most quitclaim transfers in Delaware qualify for a transfer tax exemption. The exemptions are written as exclusions from the definition of a taxable “document” under 30 Del. C. § 5401(1):5Delaware Code Online. Realty Transfer Tax
- Between spouses — subsection (g).
- Between divorced spouses, for property acquired before the final decree — subsection (h).
- Between parent and child, including transfers to or from a child’s spouse — subsection (i).
- Between siblings, including half siblings and step siblings — subsection (w).
- To or from a revocable trust where the grantor remains the beneficial owner — subsection (j).
- Between an individual and a wholly owned entity, where the individual’s equity interest matches their ownership share of the property — subsection (n). Liquidation distributions do not qualify unless the equity interest was held more than three years.
- Correction deeds without actual consideration — subsection (l).
Cite the specific subsection letter in the exemption section of the RTT-TAX. Attaching supporting documentation speeds up processing. For trust transfers, the recorder often asks for a copy of the original conveyance that put the property in the trust.
Formatting the Document for Recording
County recorders will reject documents that do not meet their physical formatting standards, and they charge a non-conforming fee on top. The rules vary slightly by county, but the common ground is enough to work from.
- Use standard 8½-by-11-inch paper. New Castle County also accepts legal size.
- Leave generous top margins on the first page for the recorder’s stamp. New Castle County requires a 2½-inch blank space at the top left and a 1-inch blank space at the top right, with ¾-inch margins on the other sides. Additional pages need a 1-inch top margin and ¾-inch side and bottom margins. Kent and Sussex have similar expectations.
- Use a standard, legible font at 10 points or larger in black or dark blue ink. Kent County specifies 10-point Times New Roman or equivalent; New Castle County requires characters of at least 15 pitch.
- In New Castle County, place the tax parcel ID, preparer’s name and address, and return-to name and address in the upper right corner of the first page.
Kent County charges a $40 non-conforming fee per document when formatting standards are missed, and a separate $20 rejection fee if the document comes back entirely.8Kent County Delaware. Recorder of Deeds Fees Schedule Sussex County charges $30 for non-compliant documents.9Sussex County Delaware. Recorder of Deeds Fee Schedule Both are avoidable.
Where to Record and What It Costs
Bring the signed, notarized deed and the completed RTT-TAX to the Recorder of Deeds in the county where the property sits. Each of Delaware’s three counties has its own fee schedule.
New Castle County
A $30 state document fee, a $5 technology fee, $13 per page, and $3 per parcel listed.10New Castle County Government. Fee Schedule A straightforward two-page, one-parcel deed runs $64.
Kent County
A $36 document fee (which includes $30 to the state, $1 to the county, and $5 for technology), $10 per page, and $5 per tax parcel.8Kent County Delaware. Recorder of Deeds Fees Schedule The same two-page, one-parcel deed costs $61.
Sussex County
A $30 document surcharge, a $1 maintenance fee, and $9 per page.9Sussex County Delaware. Recorder of Deeds Fee Schedule That same deed runs $49.
Recording fees are separate from the transfer tax. If the transfer is exempt, you pay only the recording fees. Payment methods vary — most offices take checks and money orders, and some accept cash or credit cards. Call ahead to confirm.
After Recording
Once the recorder accepts the deed and tax forms, the document is stamped with a recording reference number and indexed in the county’s land records. The transfer becomes public record at that point, and the deed’s priority dates from the moment of recording, not from when it was signed.11Delaware Code Online. Delaware Code 25 – Chapter 1 Deeds The original is typically mailed back to the grantee or to the return address on the document.
Record promptly. An unrecorded deed is still valid between the grantor and grantee, but it offers no protection against a later buyer or creditor who records first. If the grantor signed a second deed to someone else and that person recorded first, the second buyer’s claim would take priority.
What a Quitclaim Does to Existing Title Insurance
Because a quitclaim deed makes no warranties about the title, it has a side effect worth knowing about: it can terminate existing title insurance coverage. Many policies include a continuation clause that keeps coverage in force only while the insured has liability through covenants or warranties in a transfer. A quitclaim makes no such covenants, so the grantor’s existing policy effectively ends, and the grantee takes the property with no title insurance protection unless they buy a new policy. For high-value properties or complicated title histories, a new owner’s policy after the transfer is worth the cost.