Any time someone buys, sells, gifts, or otherwise transfers land, the title to that land changes. For that title change to be official, the change needs to be recorded in the county where the property is located. Because property records are public, recording puts the world “on notice” of who owns the property. This notice enables all parties to have confidence when transferring property and prevents parties from transferring land they do not own.
For a property transfer to be recorded, the new owner must follow a specific set of standards in drafting their ownership documents and submitting them to the proper county office. These standards can be hard to find, let alone follow, even for a simple transfer from one person to another. Unfortunately, there can be variance in what different counties will require, but there are some general standards. Keep in mind that the standards for abstract property and for torrens property are usually different, so it is important to know how a property has been recorded in the past.
While there are different requirements for different kinds of transfers, we can usually know how much it will cost to record a transfer. It costs $46 per document to record a transfer. So, if a transfer requires more than one document, such as a deed and an affidavit, it will cost $46 for each document needed to record that transfer. This cost is usually payable to the specific county recorder. When recording a transfer, the recorder needs to know the deed tax. This is calculated by taking the sale price and multiplying it by .0033. So, if a property was transferred in exchange for $200,000, the deed tax would be $660. If the transfer was for less than $3,000, then the deed tax is a flat rate of $1.65, which is noted on the deed by writing “Total consideration less than $3,000” in the deed tax line. Some counties will require that the deed tax payment is made out to the county auditor, so it is important to ask the recorder’s office before writing a check or making a payment.
When a property is being transferred from an individual to another individual (or individuals to other individuals), or from an individual(s) to a trust, the only document required is the original deed used in the transfer. The name of the grantor on the deed must be exactly the same as the name of the grantee on the most recently recorded transfer deed, including spelling, the inclusion of a middle name or initial, and reference to marital status.
The recording requirements only get more complicated for different transfers. For abstract property transfers with a trust or estate as the grantor, refer to our more detailed guide here.
Jacob Grow