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.
Laws & Requirements
Statute: The deed must contain specific language, according to Ind. Code § 32-21-1-15: “[A.B.] quitclaims to [C.D.] (describe the property here) for the sum of (amount).” The language in a quitclaim deed cannot imply a “grant” or “warranty,” as these terms could create a warranty deed.
Signing Requirements: According to Ind. Code § 32-21-2-3, a quitclaim deed is only valid if the grantor signs it in a notary public’s presence. The notary must also stamp it with their seal.
Recording Requirements: Ind. Code § 32-21-4-1 describes the process for filing a quitclaim deed. The grantor should take the completed deed to the County Recorder’s office where the property lies. Each county has its fee schedule, so the grantor must file the deed with the appropriate recording fee.
Transfer Tax: No.
Additional Documents: Ind. Code § 6-1.1-5.5 notes that if a transfer involves valuable consideration, a Sales Disclosure Form (Form 46021) is also required alongside the quitclaim deed. If the transfer is a sale of residential real estate, the grantor must also complete a Residential Property Disclosure Statement, according to Ind. Code § 32-21-5-10.
How to File
- Assess the Right Type of Deed for Your Needs: Determine if a quitclaim deed is suitable for your property conveyance needs.
- Gather Relevant Information and Paperwork: Gather the original deed so you can refer to it for the property’s legal description.
- Fill out the Quitclaim Deed: Fill out the deed with all pertinent details, including the grantee’s and grantor’s names and the property’s legal description.
- Have the Form Notarized: Sign your name as the grantor before a notary public.
- Complete Additional Forms: Complete additional forms, such as the Sales Disclosure Form and Residential Property Disclosure Statement, as necessary.
- Record the Document: Record the document with the appropriate county recorder’s office.
Costs and Fees
Filing Fees:
Indiana counties can set their own filing fees, which may run between $25 and $35. In cases where you need a sales disclosure, you can expect to pay an additional fee, usually around $20.
Taxes:
- Real Estate Transfer Tax: Indiana doesn’t have a real estate transfer tax.
- US Gift Tax: The IRS gift tax applies when one party gives a significant financial gift, including real estate, to another. If the property you transfer is a gift to the grantee, given without the expectation of equal value in return, you will generally take care of paying the gift tax. However, the parties involved in the property transfer may arrange for the grantee to pay the gift tax in exchange for the property.
- Capital Gains Tax: Indiana imposes a 3.05% capital gains tax. The federal government also charges an additional capital gains tax, which the IRS details in Topic No. 409.
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.
