Property transfer date

[AccTaxMan]

Taxpayer A quitclaimed a property to Taxpayer B. Is the transfer date the date that Taxpayer A signed the quitclaim deed, or is it the date that the quitclaim deed was recorded?

I have always thought it should be the date that the deed was recorded. But the attorney of my client said it should be the date that the deed was signed. Is he right?

[ATSMAN]

Date the deed was signed is the date he gave up his ownership interest. You can record a deed at the registry after that so the date recorded is just that.

[DaveinTexas]

I am reading

that once the deed is delivered to the other party, the right to the property is relinquished. But, it's possible that these laws vary from state to state. I hate to take the word of an attorney because they can be wrong at times. I would want to check with a real estate professional or real estate attorney to be sure.

Call a local real estate attorney and tell them you may have referral opportunities in the future, then slyly, work your question into the conversation!! Works every time, offer them something and then ask for free advice! I have never tried this but it just may work.

[Burke]

Date the deed was signed is the date he gave up his ownership interest. You can record a deed at the registry after that so the date recorded is just that.

I agree. A contract is effective on the date signed, and depending on the type of contract it is, it may never be recorded.

[Roland Slugg]

I disagree with most of the above replies. A deed can, and often is signed several days before an actual transfer takes place. This is true for most traditional purchases/sales of real estate, but the actual sale date is the date escrow closes, and that is normally when the deed is recorded. In the case at hand, there may or may not have been as escrow. If there was not, I would suggest that the "official" transfer date was the day the signed deed was delivered to the new owner, along with the keys to the property, if applicable.

Just wondering: If the signature date and the delivery date are just a few days apart, what difference does it make?

[Burke]

Roland has a good point. Research "perfection" of a contract.

[Gary2]

I disagree with most of the above replies. A deed can, and often is signed several days before an actual transfer takes place. This is true for most traditional purchases/sales of real estate, but the actual sale date is the date escrow closes, and that is normally when the deed is recorded. In the case at hand, there may or may not have been as escrow. If there was not, I would suggest that the "official" transfer date was the day the signed deed was delivered to the new owner, along with the keys to the property, if applicable.

Not in MA (and likely many other states). Closing processes differ from state to state.

In MA, the only escrow concept is the deposit check held in escrow, often by the seller's real estate agent. While some people may use the term "close escrow", it's not the same as states where "closing escrow" is the true process (whatever that means - I don't know the steps elsewhere).

Here, the closing is normally managed by an attorney, usually hired by the lender. We don't have title or escrow companies handling closings. The deed is signed at the closing, but that's only going to be the date of recording if the closing is held in the morning and the attorney's runner can get to the registry before it closes for the day. We would never say that closing is when the deed is recorded. The attorney has a fiduciary duty to get the deed recorded as soon as reasonably possible, after which a registered copy of the deed, with the Registrar's stamp, is forwarded by mail to the new owners. I don't recall whether it's normal for the new owners to also get an unregistered copy of the deed; it's unclear what value that might have. The keys are transferred at the closing, which is before the deed is recorded.

I won't swear to this, but I believe property taxes are allocated based on closing date, not registration date. So for a closing taking place tomorrow afternoon, the sellers would be responsible for taxes through today, while the buyer would be responsible starting tomorrow -- not Tuesday (this being a holiday weekend). If they based it on registration date, they'd have to allow for changes due to unforeseen circumstances that prevent the recording from taking place as planned.