A Wisconsin quitclaim deed offers a straightforward option for real estate transfers. Unlike a warranty deed, this type of deed doesn’t guarantee a good title. This document is common in divorces and transfers between family members, as it simplifies property ownership changes.
Laws & Requirements
Statute: A quitclaim deed doesn’t need specific language, but the grantor should avoid using specific language that outlines warranties or covenants. Use “quitclaim” in the deed to ensure clarity (Wis. Stat. § 706.10(4)).
Signing Requirements: Wis. Stat. § 706.06 requires the grantor to sign their quitclaim deed. A notary public must authenticate their signature for it to be valid.
Recording Requirements: Under Wis. Stat. § 706.05, the quitclaim deed should be registered with the Register of Deeds in the county where the property lies. Wisconsin requires the grantor to pay a filing fee during registration.
Transfer Tax: Yes. The transfer fee is 30 cents for each $100 value or fraction of $100 (Wis. Stat. § 77.22).
Additional Documents: The grantor must attach an electronic Real Estate Transfer Return (eRETR) form.
How to File
- Find All Relevant Documentation: Reference the original deed to obtain an accurate and thorough legal description of the property.
- Fill out the Quitclaim Deed: Complete the form with all relevant information.
- Notarize: Have a notary public authenticate your signature.
- Complete the eRETR: Complete the eRETR to accompany your form.
- File at the County Recorder’s Office: Visit the county recorder’s office in the appropriate location to file your deed.
Costs and Fees
Filing Fees:
- The filing fee is usually around $30, but it may vary depending on the county where you record your deed.
Taxes:
- Transfer Tax: The real estate transfer tax is $0.30 for every $100 or a portion of $100 of the value of the property.
- US Gift Tax: The US government assesses a gift tax on gifts with a significant monetary value. Fill out Form 709 to report transfers subject to this tax.
- Capital Gains Tax: Wisconsin taxes capital gains as ordinary income, so the rate can range from 3.50% to 7.65%. For long-term capital gains, you may be eligible for a 30% deduction for general real estate transfers (if the grantee received them from a decedent) or 60% if the transfer involves the sale of farmland (Wis. Stat. § 71.05(6)(b)9). Federal capital gains tax will also apply under Topic No. 409.
Frequently Asked Questions
Do I Have to Pay a Transfer Fee If I’m Giving a Gift to a Nephew or Niece in Wisconsin?
Yes. Unless you’re transferring property between a parent and child (including in-laws and stepchildren), you must pay a transfer fee. Transfers between aunts/uncles and nieces/nephews aren’t exempt.
Who Can Prepare a Quitclaim Deed in Wisconsin?
An attorney usually drafts a quitclaim deed alongside the grantor to ensure it meets all legal requirements. A legal secretary or paralegal may draft this document under an attorney’s supervision.
When Should I Use a Quitclaim Deed in Wisconsin?
You should use a quitclaim deed for more informal transfers. For example, you can use it to transfer property to a family member or close friend. You may also use it to correct an error in the title, such as a misspelled name.
