An Iowa quitclaim deed is a document that legally transfers one person’s or entity’s (grantor) interest in real property to another (grantee).
While a warranty deed guarantees that the grantor owns all rights and titles to real property, free and clear, a quitclaim deed does not. It gives a grantee or buyer whatever ownership rights and title the grantor seller has, which may not be the total or any interest. Real estate buyers should use quitclaim deeds for transactions involving family or other trusted parties.
How to File
Filing an Iowa quitclaim deed requires careful preparation and the right supporting forms. Following each step ensures your property transfer is legally recorded without unnecessary delays.
Step 1: Locate the Legal Property Description on the Existing Deed
The property owner should have access to the deed, which contains the legal property description. If you do not have a copy of the original deed, contact your county recorder’s office before you proceed.
Step 2: Fill Out the Quitclaim Deed Form
Complete the quitclaim deed using language from § 558.19 or similar. Your deed should state that the grantor “quitclaims” their interest in the real estate property without warranty of title.
Your quitclaim deed form should meet formatting guidelines established by § 331.606B and include the following information:
- Name, address, and phone number of the deed preparer
- Grantor and grantee’s names
- Name and mailing address of the grantee
- Document title
- The property’s legal description
Step 3: Transfer the Property’s Legal Description From the Original Deed
§ 331.606B requires every deed to include a legal description of the property, which can be found on your deed. § 354 outlines the following methods for describing real property:
- Subdivision name or title
- Lot number
- Plat document reference
- Parcel designation and reference number
- Section, township, and range number
- Metes and bounds
Step 4: Complete the Value Declaration and Groundwater Hazard Forms
If applicable, fill out a real estate transfer declaration of value form and a groundwater hazard statement. Iowa Admin. Code r. 701-79.5 requires deed submissions to include a value declaration with a quitclaim deed. Per § 558.69, you may also need to submit a groundwater hazard statement.
Step 5: Sign the Quitclaim Deed Before a Notary Public
The grantor should sign the quitclaim deed before a notary public, per § 558.20. § 9B provides notarization requirements.
Per § 561.13, you may also need the grantor’s spouse’s signature if the transferred property is a homestead occupied by the married couple.
Step 6: File the Quitclaim Deed With the County Recorder
In accordance with § 558.41, you must file your quitclaim deed with the Office of the County Recorder where the property is located.
Costs and Fees
Recording a quitclaim deed in Iowa comes with standard county fees and possible federal taxes. Knowing the potential costs ahead of time helps you prepare for a smooth and accurate filing.
Recording Fees
- § 331.604 establishes the following fees for recording certain documents:
- $5 fee for each page or fraction of a page unless the page contains multiple transactions. In that case, the recorder will charge $5 per transaction.
- $1 for each transaction for which a fee is paid
Each county may also charge its own fees for recording, so check with your county recorder’s office before you submit your quitclaim documents.
Taxes
When you transfer real estate using a quitclaim deed, you may be liable for federal and state taxes as follows:
1. Transfer Tax
- § 428A establishes a transfer tax for certain real estate transactions.
Who Pays the Transfer Tax?
The grantee pays transfer tax when they submit the deed to the county recorder.
Exemptions to Transfer Tax
Per § 428A.2, transfer tax does not apply to the following real estate transactions:
- Any will, plat, lease, or mortgage instrument
- Any deed conveying or receiving land for the US or State of Iowa or any agency or political subdivision thereof
- Deeds conveying cemetery lots
- Deeds that modify or correct an existing deed without additional consideration
- Deeds between spouses or a parent and child, without consideration
- Tax deeds
- Deeds of partition without consideration, unless a party takes shares greater than their undivided interest
- Deeds conveying property as a result of a merger, consolidation, or reorganization of a corporation or LLC
- Deeds conveying property within a family-owned company
- Deeds transferring property pursuant to a divorce decree
- Deeds transferring easements
- Deeds returning property to lienholders in lieu of foreclosure or forfeiture
- Deeds executed by public officials while performing in their official capacity
- Deeds transferring assets under a will to heirs or devisees
- Deeds with consideration less than $500
- Deeds transferring property to beneficiaries of a trust without consideration
Tax Rates
Transfer tax is based on the amount of the property sale price over $500. The county charges $0.80 for every $500 after the initial $500. If your transaction is exempt from real estate transfer tax, note the specific exemption on your quitclaim deed.
2. US Gift Tax (Form 709)
Iowa does not charge a state gift tax. The federal government may assess a gift tax on the quitclaimed property if your consideration exceeds the exemption limit, as established by the Internal Revenue Service (IRS). Check with a tax professional or attorney if you are unsure whether you are liable for gift tax. If so, include Form 709 in your annual income tax filing.
3. Capital Gains Tax
Iowa has repealed its capital gains tax for non-farming real estate transactions that occurred after January 1, 202. Capital gains deductions may still apply for real estate used in a farming business.
Even if you do not owe capital gains tax, you may still owe the federal government if you received consideration for the property you transferred with a quitclaim deed. The IRS establishes the capital gains rates based on your annual household income and how long you owned the property, among other considerations.
Speak with a real estate attorney or tax expert to determine whether you owe Iowa or federal capital gains tax. If you do owe capital gains tax or are eligible for a capital gains deduction, you can file the appropriate forms with your annual tax return.
Iowa Quitclaim Deed Requirements
Iowa quitclaim deeds must meet specific legal standards to be valid and enforceable. From the legal description to signing and filing rules, understanding these requirements helps ensure a smooth property transfer.
Legal Framework
State laws create a legal framework for the contents, formats, uses, and requirements for quitclaim deeds. Iowa Code § 558 establishes how deeds can convey property between a grantor and grantee.
Legal Description
- § 331.606B states that any deed or conveyance must include a legal description of the property being transferred. You can usually find a valid legal description on the existing deed for the property. Per § 354, this may include the following measurement methods:
- Subdivision name or title
- Lot number
- Parcel designation and reference
- Document reference of the plat
- Section, township, and range number
- Metes and bounds
Signing
- § 558.20 requires any deed, conveyance, or other real estate transfer document to be signed and notarized consistent with § 9B.
Per § 561.13, a deed that transfers homestead property must be signed by the owner’s spouse if they are married.
Terminology
- § 558.19 provides terminology for quitclaim deeds. You can use other terminology, but the deed must state that the grantor “quitclaims” rather than “conveys” the property. In addition, it should indicate that the property is transferred without warranty.
Additional Documents
Per Iowa Admin. Code R. 701-79.5, a real estate transfer declaration of value form must accompany your quitclaim deed when you submit it for recording. Depending on the property details and location, you may also need to file a groundwater hazard statement, per § 558.69.
Filing
To be considered valid, a quitclaim deed must be filed with the Office of the County Recorder in the county where the real estate is located, as per § 558.41.
Validity Requirements
To ensure ease of filing and document consistency, § 331.606B establishes the following formatting requirements for all recorded documents:
- Each document must be on white paper of at least 20-pound weight with no watermarks or visible inclusions
- Text within the document must be clear and readable when reproduced
- All signatures must be in dark blue or black ink
- The first page of each document must have a margin of 3 in.
- All other margins must be a minimum of ¾ in.
- Each document must be typed or printed with a minimum 10-point text with no more than 20 characters and pages per inch.
- Documents should be presented on individual pages not permanently bound or in continuous form.
Your county recorder may have different formatting and submission requirements. To avoid complications, contact the county recorder’s office in the county where the property is for clarification.
Content Requirements
Quitclaim deeds presented for recording must include the following details on the first page:
- Name, address, and phone number of the person who prepared the deed
- Grantee’s full name and mailing address
- The return address for the registered deed
- Title of the quitclaim deed
- All grantor and grantee names
- Any additional address required by statute
- The property’s legal description and parcel identification number
Per § 331.606A, documents cannot include certain personally identifiable information, such as a social security number or bank account information.
Quitclaim Deeds vs. Other Property Transfer Methods in Iowa
| Quitclaim Deed | Transfers real property from the seller, or grantee, to the recipient, or grantor, without guarantee of title or ownership by the grantor. The grantor is not liable if title or ownership issues arise. |
| General Warranty Deed | Transfers property with a full warranty for a free and clear title. The grantor carries full liability for any title defects or encumbrances related to the real property. |
| Special Warranty Deed | Transfers property with a title warranty limited to the time the grantor had control of the property. The grantor carries responsibility for title defects that arose during their ownership, but not before. |
| Title Insurance | Grantees who receive property through a quitclaim deed can mitigate their financial responsibility with title insurance. For a premium fee, the insurance company will help cover losses associated with title defects or encumbrances that may arise. |
| Life Estate Deeds | Life estate deeds allow the grantor to convey ownership to a new owner while retaining the right to live in the property until their death. Similarly, a transfer on death (TOD) deed transfers ownership of the property to a beneficiary upon the owner’s death. |
| Co-Ownership | § 557.15 establishes co-ownership through tenancy in common or joint tenancy, which allows a co-owner’s interest in a property to automatically transfer to the other owners upon their death. |
Sample Iowa Quitclaim Deed
Here’s an example of an Iowa quitclaim deed. You can customize the template to fit your needs and download it in PDF or Word format.
