A Maryland quitclaim deed is a useful tool that a property’s owner can use to transfer real interest in a property to another party. With a quitclaim deed, the property’s owner (grantor) does not guarantee the buyer (grantee) that they have a good title or own the property. If a buyer and seller want the property to have a warranty on the title, they need to use a warranty deed.
A quitclaim deed works best in cases where the two parties know each other well, such as when transferring property between family members or into a trust for estate planning needs.
Laws & Requirements
Statute: Maryland Code Title 3 – Recordation.
Signing Requirements: Maryland Code, Real Property, § 4-101: The grantor must sign a quitclaim deed in Maryland before a notary public.
Recording Requirements: Maryland Code, Real Property, § 3-104: You must file Maryland quitclaim deeds with the Clerk of the Circuit Court in the property’s county. Each county has recording fees, and some require a municipal lien release fee.
Transfer Tax: Yes. Deeds transferring property require state and county transfer taxes (Maryland Code, Tax Property § 13-101). However, some transfers are exempt from certain taxes, such as gifts of property to parents, children, or spouses (Maryland Code, Tax Property § 13-207).
Additional Documents: To submit the quitclaim deed to the Clerk of the Circuit Court, you must complete a Land Instrument Intake Sheet to determine transfer and recordation tax, if any.
How to File
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Step 1: Obtain Maryland Quitclaim Deed Form
- Download or acquire a Maryland-specific quitclaim deed form.
- Consider hiring a property attorney for guidance.
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Step 2: Enter Preparer’s Details
- The document preparer (grantor or attorney) inputs their name and address under “Prepared by.”
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Step 3: Enter Grantor’s Details
- Input the grantor’s full legal name and mailing address.
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Step 4: Enter Grantee’s Details
- Enter the grantee’s full legal name and mailing address.
- Specify where the document should be sent after filing.
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Step 5: Fill in Consideration
- State the amount paid for the property, using both words and numbers.
- A nominal amount like $10 can be recorded.
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Step 6: Note Property Legal Description
- Provide the property’s county and detailed legal description.
- Attach a second document for an in-depth description.
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Step 7: Preparer Signs the Form
- The preparer signs in the “Preparer’s Certification” section, indicating their status, and prints their name.
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Step 8: Grantor Signs the Form in Front of a Notary Public
- The grantor’s signature is notarized to certify authenticity.
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Step 9: Prepare Land Instrument Intake Sheet
- Fill out a comprehensive intake sheet with detailed property and transaction information.
- Both the original deed and a photocopy must accompany the sheet for processing.
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Step 10: File Documents with Circuit Court Clerk
- Submit all documents and fees to the clerk of the circuit court in the property’s county.
Costs and Fees
Filing Fees:
- Consist of a base fee plus a surcharge.
- Fees differ by county but generally are:
- $60 for legal documents related to principal residences or documents under 9 pages (excluding releases).
- $115 for documents over 10 pages.
- $50 for releases under 9 pages.
- A $40 surcharge applies to most recordable legal documents involving land.
Taxes:
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Documentary Transfer Tax (DTT):
- State and county transfer taxes and state recordation taxes apply.
- State transfer tax is 0.5% (0.25% for first-time Maryland home buyers).
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Allocation of Transfer Tax:
- Customarily split between grantor and grantee, but can vary by agreement.
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Exemptions to Transfer Tax:
- Certain exemptions available, such as for gifts to family members.
- Lower rates may apply for first-time home buyers.
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Recordation and County Transfer Taxes:
- Vary by county.
- Examples include:
- Anne Arundel County: $7 per $1,000 for recordation; 1% or 1.5% for transfer tax.
- Baltimore City: $5 per $500 for recordation; 1.5% for transfer tax.
- Howard County: $2.50 per $500 for recordation; 1.25% for transfer tax.
- Montgomery County: $8.90 per $1,000 for recordation; 1% for transfer tax.
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US Gift Tax (Form 709):
- Federal tax; Maryland does not impose a state gift tax.
- Grantors should file IRS Form 709 if applicable.
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Capital Gains Tax:
- Applies to profits from the sale of property.
- Maryland taxes both short- and long-term gains, in addition to federal taxes.
- Relevant for grantee upon future sale of the property.
Frequently Asked Questions
What are the main uses of a quitclaim deed in Maryland?
In Maryland, quitclaim deeds are primarily used for transferring property between family members, as part of divorce settlements to transfer ownership of marital property, for adding or removing someone’s name from the property title (e.g., after marriage or divorce), and for clearing up a cloud on title such as a discrepancy in the property’s legal description.
They are not commonly used for sales transactions as they do not guarantee the grantor holds clear title to the property.
Can a quitclaim deed be used to transfer property to a joint tenant upon death in Maryland?
Yes, in Maryland, a quitclaim deed can be used to transfer property to a joint tenant upon the death of one of the owners. This is often used for estate planning purposes, allowing property to pass to the surviving joint tenant without going through probate.
However, it’s important to note that using a quitclaim deed for this purpose may have tax implications and does not provide the same level of warranty as other forms of property transfer deeds. Consulting with a legal professional is recommended to ensure the deed is executed correctly and to understand the implications.
Are there any specific considerations for using a quitclaim deed in Maryland?
When using a quitclaim deed in Maryland, it’s crucial to understand that such deeds transfer ownership without any guarantees that the grantor has clear title to the property. This means the grantee receives whatever interest the grantor has, which might be none. Therefore, they are not recommended for transactions where the buyer requires certainty about the title.
Additionally, the parties should consider potential tax implications, including transfer and recordation taxes. Legal advice is highly recommended to navigate these aspects and to ensure compliance with Maryland’s specific requirements for executing and recording the deed.
What is the difference between a quitclaim deed and a warranty deed in Maryland?
The primary difference between a quitclaim deed and a warranty deed in Maryland is the level of protection afforded to the buyer (grantee). A warranty deed guarantees that the grantor holds clear title to the property and has the right to transfer it, offering protection against any title defects.
Conversely, a quitclaim deed transfers whatever interest the grantor has in the property without any warranties regarding the title’s quality. Thus, warranty deeds are typically used in sales transactions, while quitclaim deeds are used for transfers where the level of trust between parties is high and no money is exchanged.
