An Indiana quitclaim deed is a legal document for transferring real estate ownership between one party (the grantor) and another (the grantee). It conveys the grantor’s interests and ownership in the property without making any further promises or issuing a warranty related to the title. The grantee inherits all encumbrances and problems, even if the grantor doesn’t disclose them.
How to File
Filing an Indiana quitclaim deed involves a few important steps to complete the transfer correctly. From choosing the right deed to recording it with the county, each part of the process ensures your property rights are officially updated.
Step 1: Assess the Right Deed Type for Your Needs
Determine if a quitclaim deed is appropriate for your property transfer needs. Evaluate your relationship with the other party. If you’ve known them for a long time and trust them, you can more confidently execute a quitclaim deed even though it doesn’t come with covenants. Consider a different property transfer method if you have an uncertain or unestablished relationship.
Step 2: Gather Relevant Information and Paperwork
Gather the original deed so you can refer to it for the property’s legal description. If you misplaced the original deed or otherwise can’t access it, request a copy from your County Recorder’s office.
Step 3: Fill out the Quitclaim Deed
Compose your quitclaim deed with all pertinent details, including the grantee’s and grantor’s names and the property’s legal description. Use the language in Ind. Code § 32-21-1-15 to ensure the document is valid and enforceable.
Step 4: Have the Form Notarized
Do not sign or date the form when you initially fill it out. Because Indiana requires you to have the document notarized, you must sign and date the form in the presence of a notary (Ind. Code § 32-21-2-3). The notary cannot validate the form unless they see you sign it.
A notary will attach their seal and sign the form to authenticate the document. The grantor should provide their government-issued ID as proof of identity when taking the document to be notarized.
Step 5: Complete Additional Documents
Complete the Sales Disclosure Form (Form 46021) per Ind. Code § 6-1.1-5.5. Furthermore, if the property transfer is a sale of residential property, the grantor must complete a Residential Property Disclosure Statement per Ind. Code § 32-21-5-10.
Step 6: Record the Document
Take the document to your County Recorder’s office so they can record it. After they complete the filing process, a record of the property transfer will appear in state records.
Please plan to pay all fees associated with the property conveyance, which can vary by county. Contact your County Recorder’s office to learn about relevant fees.
Costs and Fees
Handling a quitclaim deed in Indiana usually comes with modest filing fees and potential federal taxes. Understanding these costs up front can help you avoid delays and make the process smoother.
Filing Fees
Indiana counties impose their own filing fees, which may cost between $25 and $35. For example, St. Joseph County and Hamilton County charge $25.00 filing fees. In cases where you need a sales disclosure, you can expect to pay an additional cost, usually around $20.
Taxes
1. Real Estate Transfer Tax
Indiana, unlike most other states, does not have a property transfer tax.
2. US Gift Tax
The IRS gift tax applies when one party gives a financial gift exceeding a certain value to another (for the 2024 tax year, the grantor must pay gift tax on any value exceeding $18,000). If the transferred property is a gift the grantor gives without expecting equal value in return, the grantor will pay the gift tax. However, the parties may agree for the grantee to pay the gift tax if they both consent.
The gift tax may also apply when a grantor transfers property for significantly less than its actual value. For example, a grantor may decide to sell a property to a family member for a much lower cost than its assessed value. For example, if the grantee paid $300,000 for a $500,000 property, the gift tax would be assessed on the additional $200,000.
3. Capital Gains Tax
Indiana charges a 3.05% capital gains tax regardless of the property’s value. It’s the same flat rate as the state’s ordinary income tax. The federal government also imposes an additional capital gains tax, which the IRS describes in Topic No. 409. The IRS assesses a capital gains tax on the sale of assets when the sale price is significantly more than the asset’s original purchase price.
Because real estate often appreciates substantially in value over the years, many parties will have to pay capital gains tax. However, the IRS allows some exemptions to the capital gains tax, including cases where the property was the owner’s primary residence for at least two out of the last five years. Furthermore, it may make exceptions for individuals in the Uniformed Services.
Indiana Quitclaim Deed Requirements
Indiana law sets clear standards for preparing and filing a quitclaim deed. From legal descriptions to notarization and required forms, meeting these requirements helps ensure a valid property transfer.
Legal Framework
Ind. Code § 32-21 outlines the conveyance procedures for real property, further divulging into quitclaim deeds in Ind. Code § 32-21-1-15.
Legal Description
The grantor must include a legal description in their quitclaim deed. This description isn’t simply the property’s address; rather, it should consist of any of the following elements:
- The county, township, range, and section numbers.
- Total acreage.
- Metes and bounds.
The legal description should be exact enough so the County Recorder’s office can identify the property without any confusion as to what the description is referring to.
Signing
A quitclaim deed will only be valid if the grantor signs it before a notary public and the notary public stamps it with their seal (Ind. Code § 32-21-2-3). The grantor should refrain from signing it until they’re in front of a notary; otherwise, the notary won’t be able to authenticate the signature.
Terminology
Ind. Code § 32-21-1-15 notes that the deed must contain specific language, including “[Grantor] quitclaims to [Grantee] (the legal description of the property) for [the amount paid by the grantee].” Please refrain from including any reference to a grant or warranty, which could create a warranty deed.
Additional Documents
Ind. Code § 6-1.1-5.5 notes that if a transfer involves valuable consideration, the grantor must complete a Sales Disclosure Form (Form 46021) to accompany the quitclaim deed. The Sales Disclosure Form explains the sale’s conditions and notes the transfer of property between the two parties.
Furthermore, if the conveyance involves the sale of residential real estate, the grantor must also fill out a Residential Property Disclosure Statement (Ind. Code § 32-21-5-10).
Filing
Ind. Code § 32-21-4-1 discusses the process for filing a quitclaim deed. The grantor should take the deed and the Sales Disclosure Form to the County Recorder’s office where the property resides.
Validity Requirements
A quitclaim deed must fulfill certain requirements to be valid (Ind. Code § 36-2-11-16.5):
- Be at least one individual page no larger than 8.5 by 14 inches.
- Not be permanently bound or in continuous form.
- Appear on white paper of at least 20-pound weight.
- Have clean margins on the first and last pages of at least 0.5 inches on each side and two inches on the top and bottom.
- Have clean margins on each additional page of at least 0.5 inches on the bottom, top, and each side.
- Be typewriter or computer-generated in blank ink in at least 10-point font.
Content Requirements
Explore the essential elements for the content of your quitclaim deed:
- The names and addresses of the grantee and grantor.
- A legal description of the property.
- The language per Ind. Code § 32-21-1-15.
- How the new co-owners will jointly hold the title (if there are multiple new owners).
- A statement of consideration (if applicable).
Quitclaim Deeds vs. Other Property Transfer Methods in Indiana
| Quitclaim Deed | Conveys property without making any title warranties. |
| General Warranty Deed | Requires the grantor to defend against all title claims regardless of the period from which they arise. |
| Special Warranty Deed | Provides covenants but only for the grantor's ownership period. This document absolves the grantor of encumbrances arising from before their ownership period. |
| Life Estate Deed | Divides real estate ownership into a life estate. During the tenant's lifetime, the tenant must seek the remainder beneficiaries' permission before mortgaging or selling the property. It can be a quitclaim deed but doesn't have to be one. |
| Transfer on Death Deed | Lets property transfer to a beneficiary after the owner's death. The property owner keeps full control until their passing. |
Sample Indiana Quitclaim Deed
Preview a sample Indiana quitclaim deed below—you can customize it easily and download it as a PDF or Word file.
Frequently Asked Questions
What’s the Difference between a Quitclaim Deed and a Warranty Deed in Indiana?
A quitclaim deed passes whatever interest the grantor claims to have without providing promises. On the other hand, a warranty deed comes with covenants, ensuring that the grantor will defend the grantee against any claims that arise with the property.
When Should I Use a Quitclaim Deed in Indiana?
It’s wise to use a quitclaim deed when you need to transfer property from one spouse to another in a divorce proceeding, correct a title mistake, change the legal name on a title, or transfer property between family members.
Is a Quitclaim Deed Reversible in Indiana?
A quitclaim deed isn’t usually reversible by the grantor. The grantee must agree to quitclaim the property back to the grantor. Some legalities, such as the grantee consenting to the deed under duress or coercion, may deem the deed invalid.
