A Minnesota quitclaim deed is a document used to transfer property ownership from one individual or entity (the grantor) to another individual or entity (the grantee) without providing any guarantees or warranties on the property title.
How to File
Filing a quitclaim deed in Minnesota requires more than just filling out a form. From locating the property’s legal description to completing disclosures and submitting the deed with the county recorder, each step helps ensure a smooth and valid transfer.
Step 1: Locate the Current Property Deed
Obtain a copy of the current owner’s deed for the property being conveyed. You will need the information from this document to proceed, whether you are transferring property or updating an existing deed.
If you cannot obtain a copy from the current owner, contact the county recorder in the county where the property is located to request a copy.
Step 2: Find the Property’s Legal Description
The legal description is a necessary part of the quitclaim deed, according to Minn. Stat. § 507.07. You can typically find it on the face of the existing deed. It may use any of the following methods of measurement:
- Lots and blocks.
- Sectional land descriptions.
- Fractional parcels.
- Metes and bounds.
Transcribe the description into your form exactly how it appears on the current deed.
Step 3: Complete the Quitclaim Form
When drafting your deed, take note of the formatting requirements under Minn. Stat. § 507.093.
State laws do not require a statement of consideration. However, consider including the amount of consideration to ensure appropriate taxation and avoid legal issues.
Step 4: Complete Disclosures
Quitclaimed properties transferred for consideration over $3,000 are assessed a deed tax. You must pay the tax and complete an electronic certificate of value (eCRV) form. The county auditor will then provide an acknowledgment for you to submit with your deed.
Exemptions under Minn. Stat. § 287.22 should be noted on the face of the deed in lieu of the certificate of value acknowledgment.
Minn. Stat. § 103I.235 also requires disclosure of the status and location of wells. For owners unaware of any wells on the property, the following disclosure should be noted on the quitclaim deed: “The Seller certifies that the Seller does not know of any wells on the described real property.”
Step 5: Sign Before a Notary
The document must be signed before a notary public or other officer authorized by Minn. Stat. § 507.24.1. If the grantor is married and conveying homestead property, the grantor’s spouse must also sign the quitclaim deed. The county recorder may accept electronic signatures (Minn. Stat. §§ 507.0941 to 507.0948).
Step 6: File the Deed With the County Recorder’s Office
Register your form with the county recorder’s office in the county where the property is located. Properties that exist in multiple counties must be registered in each county.
At the time of registration, the recorder may charge deed tax, consistent with Minn. Stat. § 287.21. Depending on the county, they may also charge a land preservation fee (Minn. Stat. § 40A.152).
Costs and Fees
Quitclaim deeds in Minnesota come with predictable recording fees and a deed tax based on the value of the transfer. Knowing which exemptions apply—and what additional costs may arise—can help you avoid delays and stay on budget.
Recording Fees
- The basic recording fee is $46.00 for the document (Minn. Stat. § 357.18).
- If the property requires a well disclosure, the county recorder may also assess a $50.00 fee (Minn. Stat. § 103I.235).
Taxes
1. Deed Tax
Minn. Stat. § 287.21 establishes the amount of tax imposed on deeds transferring property.
Who Pays the Deed Tax?
The current owner, or grantor, typically pays deed tax on the consideration they received for the property conveyed via a quitclaim deed.
Exemptions to Deed Tax
Per Minn. Stat. § 287.22, the following real estate transactions are exempt:
- Deeds transferring cemetery lots.
- Deeds transferring real estate from a personal representative to a beneficiary.
- Deeds concerning foreclosures.
- Deeds modifying, granting, terminating, or creating an easement.
- Deeds transferring property pursuant to a divorce decree.
- Deeds conveying property upon the death of the owner.
- Deeds conveying property to or from the US government or any agency or instrumentality thereof.
Tax Rates
The state deed tax varies depending on the details of the real estate transfer. The following real property transfers are subject to a $1.65 flat tax:
- Transfers for business consolidations, mergers, or designated transfers.
- Transfers for no consideration or consideration of less than $3,000.
A tax of .0033 of the net consideration is assessed for any transfers with consideration greater than $3,000.
The same tax rate of .0033 is retroactively imposed on the property’s consideration if it is conveyed through a non-designated transfer within six months of a designated transfer for which the flat $1.65 tax was assessed. The seller may also be subject to a penalty for willful evasion under Minn. Stat. § 287.21.
2. U.S. Gift Tax (Form 709)
- Typically, there is no state gift tax imposed. However, if the real estate property you convey exceeds the exclusion amount listed under Minn. Stat. 291.016, your estate may be taxed. Speak with an estate planner or probate attorney to learn whether this tax will affect you.
- The IRS charges gift taxes for those whose value exceeds the annual exemption limit. If you are liable for gift tax, complete Form 709 with your annual tax return.
3. Capital Gains Tax
- The state includes capital gains as part of the grantor’s total income tax filing. This means the profit you make by transferring property via quitclaim deed is taxed at the standard tax rate for your annual income.
- Additionally, the IRS charges for long- and short-term capital gains over a certain value. Federal capital gains tax is calculated using your annual income, your profit from the property conveyance, and the length of time you owned the real estate interest.
Minnesota Quitclaim Deed Requirements
Minnesota allows quitclaim deeds to transfer property without a warranty of title, but specific rules must be followed to make the transfer valid. From using the correct legal language to filing required disclosures, each detail helps ensure your deed is properly recorded.
Legal Framework
Minn. Stat. § 507.06 provides the legal foundation for using a quitclaim and release to convey real estate.
Legal Description
The deed must include a legal description of the property being transferred, per Minn. Stat. § 507.07. Legal descriptions may use a variety of methods to ensure surveyors can locate and identify the real estate interest. Measurements may include the following:
- Lot and block descriptions in reference to a recorded plat.
- Sectional land descriptions from the US Public Land Survey.
- Fractions of a parcel.
- Metes and bounds.
Signing
- Per Minn. Stat. § 507.24.2, a quitclaim deed must include the original signature of the grantor and an acknowledgment from a notary or other approved officer under Minn. Stat. § 507.24.1.
- An electronic signature may be accepted, consistent with Minn. Stat. §§ 507.0941 to 507.0948, inclusive.
- Spouses who share a homestead property with the grantor must also sign the deed, per Minn. Stat. § 507.02.
Terminology
- Minn. Stat. § 507.07 establishes basic statutory language for quitclaim deeds. While it is not necessary to use the exact terminology, your document should include the phrase “conveys and quitclaims” or similar language.
- You should note that the property is conveyed without covenants or warranty of title.
Additional Documents
- For property transfers with more than $3,000 consideration, you must include a certificate of value (Minn. Stat. § 272.115). You can file the form electronically using the eCRV form on the Minnesota Department of Revenue website.
- The county recorder cannot file your quitclaim deed over $3,000 unless it is accompanied by a notice from the county auditor acknowledging receipt of the eCRV form. If your transfer is exempt from deed tax, per Minn. Stat. § 287.22, you must indicate state the exemption directly on the deed.
- The grantor may also be required to submit a certificate disclosing the location and status of wells on the property (Minn. Stat. § 103I.235). You may be exempt from the well disclosure certificate if you are unaware of any wells on the property. In that case, you can simply state the following in the body of the deed: “The seller certifies that the Seller does not know of any wells on the described real property.”
Filing
- Deeds must be registered with the Office of the County Recorder in the county where the real estate is located (Minn. Stat. § 507.34). If the property is in more than one county, a deed must be recorded in each of those counties where the property is situated.
- The grantor may be assessed deed tax if the deed transfers real estate ownership (Minn. Stat. § 287.21). In addition, the county recorder may assess a $5.00 agricultural land preservation fee in certain counties (Minn. Stat. § 40A.152).
Validity Requirements
Minn. Stat. § 507.093 outlines formatting standards for recorded documents. To avoid filing delays or additional fees, your deed should meet the following guidelines:
- Printed, typed, or computer-generated in black ink in no smaller than 8-point font.
- Printed on white paper of at least 20-pound weight, no larger than 8 ½ in. x 14 in.
- Blank 3 in. space at the top of the first page.
- ½ in. margins for the rest of the document.
- The document title prominently displayed below the blank space on the first page.
- No additional affixed or attached sheets obscuring the form.
- Sufficiently legible to create a readable copy using the county recorder’s chosen method.
Content Requirements
For appropriate filing, quitclaim deeds must include the following information:
- Deed preparer name and address (Minn. Stat. § 507.091).
- Grantee address for property tax statements (Minn. Stat. § 507.092).
- Grantor and grantee names (Minn. Stat. § 507.07).
- The legal description of the real estate interest being conveyed.
- Transfer clause conveying the property to the new owner.
- Statement of deed tax owed or exemption (Minn. Stat. § 287.241).
- Designated transfer statement, if applicable (Minn. Stat. § 272.115.6).
- Well disclosure statement, if applicable (Minn. Stat. § 103I.235).
Quitclaim Deeds vs. Other Property Transfer Methods in Minnesota
| Quitclaim Deed | Conveys property from the current owner to the recipient without warranty of title. If title issues arise, the grantee is fully liable and cannot sue the grantor for damages. |
| General Warranty Deed | Transfers property from the grantor with a full warranty of title. Any ownership problems or title defects derived from any point in the property’s history are the grantor's responsibility. |
| Limited Warranty Deed | Transfers property with partial warranty of title. The grantor accepts responsibility for current title or ownership issues. Any issues prior to their ownership are the grantee’s responsibility. |
| Title Insurance | For a premium, the grantee can secure title insurance to cover losses from undisclosed title defects that arise following a property transfer via a quitclaim or limited warranty deed. |
| Estate Planning Deed | The property owner can transfer property through a living trust or transfer-on-death (TOD) deed designed to convey the real property to a beneficiary upon the owner’s death. |
| Co-Ownership | Allows a property owner to share real property interest with another party, such as a spouse. When one owner dies, their share of the property passes to the surviving owner. |
Sample Minnesota Quitclaim Deed
Preview a sample Minnesota quitclaim deed below. You can customize the template using our online editor and download it as a Word or PDF file for easy filing.
Frequently Asked Questions
How long does it take for a quitclaim deed to be processed in Minnesota?
The processing time for a quitclaim deed in Minnesota can vary depending on several factors, including the workload of the county recorder’s office where the deed is filed and whether all required documentation is correctly submitted. In general, it can take anywhere from a few days to several weeks for the deed to be processed and recorded.
After submission, the document must be reviewed for accuracy and compliance with state laws before it is officially recorded. It’s recommended to check with the specific county recorder’s office where the deed will be filed for a more accurate estimate of processing times.
What happens if there is a mistake on a quitclaim deed in Minnesota?
If a mistake is identified on a quitclaim deed in Minnesota, prompt action is essential. Minor errors, such as typos or misspellings, can often be rectified by filing a corrective deed or a scrivener’s affidavit, which confirms the error and provides the correct information.
However, legal action may be required for more significant mistakes or disagreements among parties, potentially involving seeking a court order to nullify the deed or clarify intentions.
Does a spouse have the right to property after signing a quitclaim deed in Minnesota?
In Minnesota, signing a quitclaim deed relinquishes one’s ownership interest in a property, but it doesn’t necessarily extinguish marital rights or interests. Determining spousal property rights may involve marital status, property ownership structures, and state laws governing marital assets.
Despite the execution of a quitclaim deed, a spouse might retain specific property rights, especially if the asset was acquired during the marriage.
