A Massachusetts quitclaim deed legally transfers property from the seller (grantor) to the buyer (grantee). This document does not guarantee the title was clear before the grantor took ownership, so the grantee should perform a title search or only enter into this deed with a trusted individual.
This deed type offers more protection to grantees than it does in most other states. With a quitclaim deed, the grantor promises to defend against title claims arising from their ownership period. However, any claims arising from before their ownership become the grantee’s responsibility.
Laws & Requirements
Statute: Mass. Gen. Laws ch. 183 (Alienation of Land) covers land transfers, including quitclaim deeds. Mass. Gen. Laws ch. 183 § 2 defines and legalizes quitclaim deeds. Within chapter 183, state laws list an appendix with the statutory form for a quitclaim deed.
Signing Requirements: Under Mass. Gen Laws ch. 183 § 29, a quitclaim deed, like other legal documents transferring real estate, should have the grantor’s signature. A notary public should authenticate this mark.
Recording Requirements: According to Mass. Gen Laws ch. 183 § 4, the grantor must file a quitclaim deed with the Registry of Deeds Office in the county where the property lies.
Transfer Tax: Yes (Mass. Gen. Laws ch. 64D § 1).
How to File
- Gather All Relevant Documents: Obtain the current property deed containing the property’s legal description.
- Consider Seeking Legal Assistance: Consider seeking legal assistance from an attorney with experience composing deeds in Massachusetts.
- Fill out the Quitclaim Deed Form: Provide all the necessary information, including the parties’ names and addresses and the property’s legal description. Emphasize what warranties, if any, you plan to convey.
- Sign and Notarize: Sign the document in the presence of a notary public.
- File: File with the Registry of Deeds Office in the appropriate county.
Costs and Fees
Filing Fees:
The grantor owes the Registry of Deeds Office filing fees when they go to register their quitclaim deed. The filing fee for deeds is $155.
Taxes:
- Real Estate Transfer Tax: The real estate transfer tax is $2.00 per $500 of taxable property value. However, individual counties have the right to set their own transfer tax, so do your research to determine whether you must pay additional taxes for your specific county (Directive 89-14: Exchange of Property).
- US Gift Tax: The IRS assesses gift taxes on high-value gifts, including gifts of real estate. While the IRS provides specific exemptions to the gift tax, including a yearly amount the grantor can gift to each recipient without paying tax, most real estate gifts will involve greater value than the stated amount.
- Capital Gains Tax: The state charges capital gains tax (5% for long-term gains and 8.5% for short-term gains). Grantors are also responsible for paying federal capital gains tax per Topic no. 409.
Frequently Asked Questions
Does a Quitclaim Deed Give You Ownership in Massachusetts?
Yes. A quitclaim deed transfers property ownership from one party to another. However, you should be wary that it may come with undisclosed encumbrances from previous ownership periods.
How Do a Warranty and Quitclaim Deed Differ in Massachusetts?
A warranty deed provides promises about the property title’s condition as it relates to previous owners. On the other hand, a quitclaim deed only offers protection against encumbrances the grantor has made. It doesn’t guarantee protection from preexisting encumbrances, such as easements or restrictions that the jurisdiction has set.
What Types of Ownership Can I Specify in a Massachusetts Quitclaim Deed?
You can specify three ownership types in your quitclaim deed:
- Tenancy by the Entirety: This type is ideal for married couples. It lets the surviving spouse automatically inherit full ownership without going through probate.
- Joint Tenants: This type creates the right of survivorship without the grantor needing to have a spouse. It’s suitable for parents and their children or pairs of siblings.
- Tenants in Common: This type doesn’t involve the right of survivorship. Instead, when one owner dies, their interest in the property goes to their heirs. The property must go through the probate process.
