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.
Laws & Requirements
Statute: Minnesota Statutes Chapter 507 (Recording and Filing Conveyances).
Signing Requirements: Minn. Stat. § 507.24.2: The grantor must sign the deed in the presence of a notary public.
Recording Requirements: Minn. Stat. § 507.0944: Register your form with the County Recorder’s Office where the property is located, and submit a recording fee.
Transfer Tax: Yes. State law imposes a transfer tax, also called a deed tax, on the value of the property transferred. The tax does not apply to deeds valued at less than 3,000. The rate is 0.33 % of the selling price (net consideration) and is paid to the county treasurer.
Additional Documents: If the consideration for the property is greater than $3,000, the Electronic Certificate of Real Estate Value (eCRV) must be filed with the deed. When the consideration is $3,000 or less, the transfer document should contain language stating the eCRV is not required. In addition, if the property has a new well that was put in place after the grantor’s original purchase, the Well Disclosure Certificate is needed.
How to File
- Obtain the Current Property Deed: Get a copy of the property owner’s deed to gather the necessary information for transferring or updating the form.
- Get the Property’s Legal Description: Locate and transcribe the property’s legal description, which is essential for your deed.
- Fill Out the Quitclaim Form: Adhere to formatting requirements, considering the inclusion of consideration amount for taxation purposes.
- Provide Required Disclosures: Note deed tax assessment for properties with consideration over $3,000, complete an electronic certificate of value (eCRV) form and disclose well status and location as per statutory requirements.
- Sign in the Presence of a Notary: Ensure the document is signed before a notary public or authorized officer, with additional signature required if conveying homestead property by a married grantor.
- Register the Deed: File the completed form with the county recorder’s office where the property is located, paying deed tax and potential land preservation fees.
Costs and Fees
Recording Fees:
- The standard recording fee is $46.00, with a potential additional $50.00 fee for properties needing well disclosure.
Taxes:
- Deed Tax: Rates vary, with a flat $1.65 for certain transfers and a .0033 rate for consideration exceeding $3,000. Penalties may apply for willful evasion (Minn. Stat. § 287.21).
- U.S. Gift Tax (Form 709): Minn. Stat. 291.016 dictates the exclusion amount for state gift tax, with estate taxation possible if real estate conveyed exceeds this amount. The IRS enforces gift taxes on values exceeding annual exemption limits.
- Capital Gains Tax: State capital gains tax applies to profits from property transfer, taxed at standard income tax rates.
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.
