A Michigan quitclaim deed conveys interest in a property without making any promises that the seller has ownership rights or a clear title to the property. The seller isn’t liable to the buyer if issues arise in the title.
Laws & Requirements
Statute: Mich. Comp. Laws § 565 outlines the requirements for property conveyances, stating they must be in writing. The grantor (seller) should be competent to transfer the property and the grantee (buyer) must be capable of holding title to the property. A quitclaim deed must contain specific language to be valid, adhering to Mich. Comp. Laws § 565.152.
Signing Requirements: According to Mich. Comp. Laws 565.8, in order for a deed to be legal, it must be signed in front of a judge, clerk of a court of record, or notary public.
Recording Requirements: File your quitclaim deed with the Register of Deeds in the county where the property is located, not where the transaction occurs (Mich. Comp. Laws 565.201).
Transfer Tax: Yes (Mich. Comp. Laws § 207.525).
Additional Documents: The new owner (grantee) must file a Property Transfer Affidavit (Form 2766) with the assessor for the property’s city or township within 45 days of the property conveyance.
How to File
- Gather Relevant Paperwork and Documentation: Check the current property deed for the property’s legal description.
- Fill out the Quitclaim Deed: Fill out the quitclaim deed with clarifying language about the nature of the transaction.
- Sign: Sign the document in front of a qualified individual.
- File: File the deed with the Register of Deeds in the county where the property exists.
- Have the Grantee Fill out Form 2766: Ensure the grantee fills out a Property Transfer Affidavit within 45 days of receiving the property.
Costs and Fees
Filing Fees
According to Mich. Comp. Laws § 600.2567, you can expect to pay a $30 filing fee when submitting a deed to the register of deeds.
Taxes
- Real Estate Transfer Tax: The real estate transfer tax is $3.75 for each $500.00 of the total value of the conveyed property. Each county can set additional taxes.
- US Gift Tax: A federal gift tax may apply to real estate conveyances over a certain value. Use Form 709 to report gifts and pay the appropriate taxes.
- Capital Gains Tax: Michigan charges capital gains tax at the ordinary income rate of 4.25%. Grantors must also pay federal capital gains tax. The federal capital gains tax rate will vary depending on whether your gains are short-term or long-term (IRS Topic. No. 409).
Frequently Asked Questions
What Can I Use a Quitclaim Deed in Michigan For?
A quitclaim deed is beneficial for correcting a minor title defect (such as a spelling error), selling property to family members for a low amount, or conveying property for no consideration.
Can I Reverse a Quitclaim Deed in Michigan?
No. A quitclaim deed is an unconditional property transfer that you can’t undo. However, you can draft and record a new deed to transfer the property back to yourself, but you must obtain the signature of the new owner.
What Is the Statute of Limitations for Challenging a Quitclaim Deed in Michigan?
In cases of fraud, the statute of limitations for challenging a quitclaim deed in Michigan is six years (Mich. Comp. Laws § 600.5807).
