A South Dakota quitclaim deed without covenants is an instrument for transferring real property that doesn’t warrant the grantor as the true title holder or the title’s quality. If the grantee encounters a claim with the property after the grantor transfers it to them, the grantee will be entirely responsible for addressing it.
However, if the quitclaim deed doesn’t contain the phrase “without covenants,” it will have implied covenants that the grantor must make about the condition of the property’s title.
Laws & Requirements
Statute: SD Codified Laws § 43-25-7 provides a standard form for a quitclaim deed. Per SD Codified Laws § 43-25-11 and SD Codified Laws § 43-25-10, the words “remise,” release,” “quitclaim,” and “grant” can imply covenants if your deed does not state otherwise.
Signing Requirements: SD Codified Laws § 43-25-26 states that at least one subscribing witness or a notary public must witness the grantor’s signature.
Recording Requirements: Per SD Codified Laws § 43-28-1, quitclaim deeds must be recorded with the County Register of Deeds Office where the real property is situated.
Transfer Tax: Yes. The transfer tax is $0.50 for each $500 of value. The grantor must pay the fee (SD Codified Laws § 43-4-21).
Additional Documents: Per SD Codified Laws § 7-9-7, you must include a Certificate of Real Estate Value (PT 56) when transferring property.
How to File
- Obtain the Property’s Legal Description: Use the existing legal description on the original deed if you have access to it.
- Create a Form: Choose a form that abides by the state’s statutory form, such as our template.
- Sign and Notarize: Sign your name as the grantor before a notary public.
- Complete a Certificate of Real Estate Value: Fill out form PT 56 to submit with your quitclaim deed.
- Record the Documents with the County Register of Deeds: Determine which county register of deeds you need to record your quitclaim deed in and submit the document.
Costs and Fees
Filing Fees:
- Recording fees: Recording fees are $30 for the first 50 pages plus $2 for each additional page or fraction thereof (SD Codified Laws § 7-9-15).
Taxes:
- Real Estate Transfer Tax: The real estate transfer tax is $0.50 per $500 of value or a fraction thereof. Depending on the circumstances under which you transfer your property, you may be exempt from paying the tax (SD Codified Laws § 43-4-21).
- US Gift Tax (Form 709): The federal government charges a gift tax for gifts valued over the annual exemption limit. Exemptions change annually, so check with the Internal Revenue Service (IRS) to confirm whether you owe gift tax as the property grantor.
- Capital Gains Tax: The state doesn’t charge a tax on capital gains, but you may owe the federal government if you’re the grantor and received consideration from the real estate exchange via a quitclaim deed. The IRS establishes the capital gain rates each year in Topic no. 409.
Frequently Asked Questions
How Do I Clarify That My Quitclaim Deed Comes without Warranties?
South Dakotan grantors who want a traditional quitclaim deed should incorporate the phrase “quitclaim deed without covenants.” This terminology lets them transfer their interest without making any warranties about their ownership or the property’s title.
Can I Reverse a Quitclaim Deed in South Dakota?
No. However, the grantor and grantee can discuss the circumstances and agree to a situation that works for them. If they want to reverse the effects of their quitclaim deed, they can write a new quitclaim deed to restore interest in the property to the original grantor.
Do Both Spouses Have to Sign a South Dakota Quitclaim Deed?
South Dakota is a marital property state, meaning both spouses own property equally by default. If one spouse wants to transfer property via a quitclaim deed, they’ll likely both have to sign the document.
