A New Mexico quitclaim deed swiftly transfers property ownership but lacks title guarantees. Unlike a warranty deed, it’s based on trust between parties.
How to File
Filing your New Mexico quitclaim deed correctly is key to making the property transfer official. Follow the steps to complete, sign, and record your document with confidence.
Step 1 – Gather All Relevant Documentation
You may want to start with a quitclaim deed template that will provide you with an overview of all the information you need to accurately fill out your paperwork. Keep in mind that you will need a state-specific template since each state will have its own requirements for a quitclaim deed.
In addition, look at the original title to the property and make sure that it accurately reflects property ownership. You can also use the original title for the legal description of the property. Note that a legal description is not just the address of the property, but also its boundaries and any other relevant information about it.
Step 2 – Fill Out the Quitclaim Deed
Make sure all information on the quitclaim deed is filled out correctly and accurately. If you leave out any information, the County Clerk’s office may not file the deed, and it may not be considered valid. The grantor should not sign the document while filling it out, since this needs to be done in the presence of a notary.
Step 3 – Take the Document to a Notary
You will need to sign and date the document in the presence of the notary. Then, the notary will stamp and sign the document. The notary’s signature and seal, as noted in N.M. Stat § 47-1-44, are necessary to validate the document. You will need to take legal proof of your identity, usually a state-issued ID, with you when you go to the notary’s office.
Step 4 – Take the Quitclaim Deed to the County Clerk’s Office in the Relevant County
As per N. M. Stat. § 14-9-1 , the quitclaim deed will need to be filed with the County Clerk’s office in the county where the property is located. When you file the quitclaim deed, you need will provide the name and address of the party who will receive the quitclaim deed once it is filed.
At this time, you will need to pay the $25 fee laid out in N.M. Stat. § 14-8-15. Make copies of the quitclaim deed for all relevant parties before taking the deed to file it.
Costs and Fees
Expect to pay county recording fees and taxes when filing a quitclaim deed in New Mexico. Having a clear picture of the costs can make the process smoother and more predictable.
Filing Fees
According to N.M. Stat. § 14-8-15, anyone filing a quitclaim deed in New Mexico can expect to pay a $25 fee.
Taxes
There are several taxes to take into account when filing a quitclaim deed in New Mexico.
Documentary Transfer Tax
New Mexico does not have a transfer tax for real estate transactions.
US Gift Tax (Form 709)
The United States Gift Tax is charged when funds or property of significant value are gifted to another party, including a relative. While there are some exemptions to the gift tax, real estate is often of significant enough value to meet gift tax requirements. Review annual exemptions in order to determine what you can expect to pay in gift taxes if a relative or friend gifts you a property.
New Mexico does not assess its own separate gift tax.
Capital Gains Tax
The capital gains tax is a tax paid on money earned when selling real estate or other large property. Real estate frequently appreciates significantly in value over time. When selling the property, the capital gains tax is applied to the additional amount the property sells for when compared to its value at purchase.
Depending on how long the grantor has held the property and how much its value has increased, that change can be significant, resulting in considerable capital gains taxes on the property. An accountant or tax professional can help the grantor assess what the tax burden on the property will look like.
New Mexico Quitclaim Deed Requirements
Quitclaim deeds in New Mexico must satisfy a set of legal criteria to be officially accepted. Completing your deed correctly helps you avoid complications and transfer property with confidence.
Legal Framework
A quitclaim deed must contain several key elements in order to be considered legal.
Statute
N.M. Stat. § 47-1-30 lays out the requirements for quitclaim deeds in New Mexico. It notes that a quitclaim deed, when executed, has the same effect as other types of deeds.
Signing the Deed
According to N.M. Stat § 47-1-44, in order to be legitimate, the quitclaim deed must be signed by the grantor in the presence of a notary and notarized.
Filing a Quitclaim Deed
Filing a quitclaim deed in New Mexico means visiting the County Clerk’s office. N. M. Stat. § 14-9-1 requires all paperwork relevant to real estate transactions to be filed with the County Clerk’s office in the county where the property is located. According to N.M. Stat. § 14-8-15, this will include a $25 filing fee.
Transfer Tax
New Mexico does not require taxes to be paid on a quitclaim deed.
Terminology
Several key terms must be considered when arranging for a property transfer and completing a quitclaim deed.
- Grantor: The current owner of the property, who will pass on ownership to the other party
- Grantee: The party taking possession of the property
- Legal description: A full description of the property. The legal description is not just the address of the property, but also a full description that includes its boundaries and position in the county.
Validity Requirements
There are several key elements that are necessary for a quitclaim deed to be valid in New Mexico.
- Contains all relevant information, including a legal description of the property.
- Is signed by the grantor and notarized (N.M. Stat. § 47-1-44,)
- Is filed with the County Clerk’s office (N. M. Stat. § 14-9-1)
If any of those requirements are not met, the document is not valid, which means that the grantor may retain both rights and obligations as they pertain to the property. Ensuring the validity of the document is essential for properly completing the transfer.
Content Requirements
A quitclaim deed must include essential information about the property being sold and both the grantor (the person signing over the property) and the grantee (the person taking possession of the property). It should include:
- The address of the property, including a legal description that lays out exactly where the property is located and all relevant details about it.
- The name and address of the grantor.
- The legal signature of the grantor.
- The name and address of the grantee.
- A notary’s seal, noting that the notary observed the document being signed.
Filling all these content requirements ensures that the transfer of the property will go smoothly and that the transfer will be valid.
Quitclaim Deeds vs. Other Property Transfer Methods in New Mexico
Choosing the right type of deed for your property transfer is essential. By choosing the right type of deed for the transfer, you can help protect both the grantor and the grantee. Furthermore, ensuring that you know what type of deed you are using will make sure the deed style chosen is the right type.
| Quitclaim Deed | A quicker and more straightforward method than many other property transfer processes, often used for adding or removing a spouse's name from property titles, transferring property between family members or close friends, and correcting title defects. It carries no warranty, meaning the grantee assumes all risks associated with the title. |
| Special Warranty Deed | This transfer method offers a warranty only for the duration the previous owner held the property, making it faster than full warranty transfers and commonly used for purchasing foreclosures and bank-owned properties. However, it may not cover the period before the current owner's possession, potentially leaving the grantee at risk for encumbrances or liens from earlier ownership. |
| Warranty Deed | This property transfer method includes a full warranty, ensuring the title is free from liens, encumbrances, or issues, offering the most comprehensive protection for the new owner. It is standard for real estate purchases but may necessitate a title search and disclosure process, potentially lengthening the transfer timeline. |
| Transfer-on-Death (TOD) Deeds | Allows ownership to pass to heirs upon the current owner's death without affecting the owner's rights during their lifetime, thus streamlining the transfer process by bypassing probate. This facilitates easier possession for heirs, avoiding the lengthy probate process. However, the current owner retains the right to revoke the TOD deed at any time before death, making the future transfer uncertain until the owner's passing. |
| Life Estate Deed | Enables a new owner to obtain property interest while the current owner retains usage rights until death, facilitating smooth transfers to heirs without probate. This method prevents the current owner from selling the property but allows them to live there, making it ideal for family arrangements. It ensures future ownership but limits the new owner's recourse against property damage, tying the new owner to the property's future with minimal interference in current usage. |
Sample New Mexico Quitclaim Deed
Below is a free New Mexico quitclaim deed sample. You can fill it out using our editor and download your document as a Word or PDF file.
Frequently Asked Questions
How long does it typically take to record a quitclaim deed in New Mexico?
The recording time for a quitclaim deed in New Mexico can vary by county due to differences in processing times and local workload. Generally, it may take anywhere from a few days to a couple of weeks for a quitclaim deed to be officially recorded. It’s advisable to contact the local county recorder’s office where the property is located for the most accurate and up-to-date information.
Is there a specific expiration date for quitclaim deeds in New Mexico?
In New Mexico, quitclaim deeds do not have a specific expiration date once properly executed and recorded. The deed permanently transfers the grantor’s interest in the property to the grantee unless the deed itself is successfully challenged or voided through legal proceedings. As with any legal document, ensuring accuracy and compliance with state and local regulations at the time of execution is crucial.
How to correct a typo on a New Mexico quitclaim deed?
Correcting a typo on a New Mexico quitclaim deed involves several steps to ensure the correction is legally recognized:
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- Identify the specific error on the original recorded deed.
- Prepare a new quitclaim deed with the correct information. This document is often referred to as a “Corrective Quitclaim Deed.”
- The corrective deed must be signed by the parties involved in the original deed and notarized.
- Record the corrective quitclaim deed with the county recorder’s office where the property is located, referencing the book and page number of the original deed. It’s recommended to consult with a legal professional to ensure the correction is made correctly and complies with New Mexico laws.
