A Quitclaim Deed in Michigan is a quick method of transferring property ownership. It allows the property owner (“Grantor”) to transfer their interests in the property to a new owner (“Grantee”). [1] Quitclaim deeds are a quick way to transfer property, yet, they provide the lowest level of security among real estate deeds in Michigan.
The most common use of quitclaim deeds is between two parties with high levels of trust, such as family members or close friends.
The main difference between a quitclaim deed and a warranty deed lies in the level of protection they offer to the Grantee on the property’s title. A quitclaim deed does not provide any promises of protection, making it faster but lacking assurance of a valid title. On the other hand, a warranty deed ensures full protection, guaranteeing the property’s freedom from ownership conflicts but involves a lengthier process to verify compliance with local, state, and federal laws. Read more
State law ruling quitclaim deeds can be found in the Michigan Legislature under Chapter 565, Conveyances of Real Property. Quitclaim deeds are one of the ways to communicate the transfer of real property. The wording of a quitclaim deed must contain specific information, including the terms to which both parties agree. [2] Once the deed is drafted, it must be registered at the Registry of Deeds in the county where the property is located. [3]
A professional drafter is not legally required in Michigan. If a drafter does prepare the document, their name and address must be included in the deed. [4]
There are multiple requirements for formatting and content that need to be included in a quitclaim deed in Michigan.
Content requirements in Michigan for documents executed after April 1, 1997:
In Michigan, quitclaim deeds require the signature of the Grantor and Grantee. The Grantor must have their signature authenticated by a notary. [11] The notarization can be completed online and signed electronically. [12]
Here’s how to file a quitclaim deed in Michigan:
The cost to file a quitclaim deed in Michigan is $30 per document. [13]
In Michigan, the purchase of property using a quitclaim deed triggers two separate taxes:
In Michigan, a number of transfers that are generally filed under quitclaim deeds are tax-exempt, including: [16]
Moreover, federal taxes such as Gift Tax and Capital Gains Tax may also be applicable.
The length of time to record a quitclaim deed in Michigan varies greatly depending on the processes, procedures, and population of each county. For example, Kalamazoo County takes three to five business days to register a deed.
In Michigan, once the quitclaim deed is signed and filed, the county will process the document, creating a public record of the transfer of ownership.
If the deed is clear of any previous filings, a public record of the transfer of the property’s ownership will be made official.
There is no expiration for quitclaim deeds in Michigan. However, the statute of limitations for challenging a deed in Michigan is 10 years from the date the deed was recorded with the county. [17]
A deed of quit claim and release, of the form in common use, shall be sufficient to pass all the estate which the grantor could lawfully convey by a deed of bargain and sale.
Any conveyance of lands worded in substance as follows: “A.B. quit claims to C.D. (here describe the premises) for the sum of (here insert the consideration),” the said conveyance, being duly signed, sealed, and acknowledged by the grantor..
Requirements for recording with a register deeds.
If the instrument is executed after January 1, 1964, the instrument contains the name and business address of the person who drafted the instrument.
Requirements for each sheet of instruments executed after April 1, 1997.
Subject to subsection (3), displays on the first line of print on the first page of the instrument a single statement identifying the recordable event that the instrument evidences.
Written instruments conveying or mortgaging real estate or interest offered for record before April 6, 2017; statement of marital status; refusal to receive instrument for record..
I. Michigan Legislature § 207.504
Rate of tax; statement on face of written instrument; affidavit.
“….A written instrument subject to the tax imposed by this act shall state on its face the total value of the real property..
II. Michigan Legislature § 207.525
(2) A written instrument subject to the tax imposed by this act shall state on its face the total value of the real property being transferred unless an affidavit is attached to the written instrument declaring the total value of the real property being transferred.
A person shall not sell a parcel of unplatted land unless the deed contains a statement as to whether the right to make further divisions exempt from the platting requirements of this act under this section and section 108 is proposed to be conveyed..
All deeds for parcels of unplatted land within this state executed after March 31, 1997 shall contain the following statement: “This property may be located within the vicinity of farm land or a farm operation…
The name of any notary public whose signature appears on the instrument is legibly printed, typewritten, or stamped on the instrument and appears on the same page near the signature of the notary public.
“AN ACT to amend 1998 PA 386, entitled “An act to codify, revise, consolidate, and classify aspects of the law relating to wills and intestacy, relating to the administration and distribution of estates of certain individuals… “
ii) Michigan Legislature House Bills 6295
AN ACT to amend 2000 PA 305, entitled “An act to authorize and provide the terms and conditions under which information and signatures can be transmitted, received, and stored by electronic means…..”
“AN ACT to amend 2010 PA 123, entitled “An act to create the uniform real property electronic recording act; and to create an electronic recording commission…”
iv) Michigan Legislature House Bills 6297
AN ACT to amend 2003 PA 238, entitled “An act to provide for the qualification, appointment, and regulation of notaries; to provide for the levy, assessment…
(1)(a) For entering and recording a document, regardless of the number of pages, $30.00, which includes the fee required to be collected under section 2567a. In addition to remitting a portion of the fee to satisfy section 2567a, the register of deeds shall deposit $5.00 of the total fee collected for each recording into the automation fund established under section 2568.
Sec. 5. (1) Beginning on January 1, 1995, except as otherwise provided in this section, the tax imposed under sections 3 and 4 is levied at the rate of $3.75 for each $500.00 or fraction of $500.00 of the total value of the property being transferred.
Sec. 4. The tax shall be at the rate of 55 cents in a county with a population of less than 2,000,000 and not more than 75 cents as authorized by the county board of commissioners in a county with a population of 2,000,000 or more for each $500.00 or fraction thereof of the total value.
207.526 Written instruments and transfers of property exempt from tax.
Damages for breach of contract; specific performance; period of limitations; bond; deed; mortgage; surety bond; appeal bond; public obligations; other actions. (5) The period of limitations is 10 years for an action founded on a covenant in a deed or mortgage of real estate.
