What is a Quitclaim Deed in Michigan?
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”). Quitclaim deeds are a quick way to transfer property, yet, they provide the lowest level of security among real estate deeds in Michigan.
What is the Difference Between a Quitclaim Deed and a Warranty Deed in Michigan?
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.
How Do Quitclaim Deeds Work in Michigan?
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. Once the deed is drafted, it must be registered at the Registry of Deeds in the county where the property is located.
Can You Prepare Your Own Quitclaim Deed in Michigan?
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.
Michigan Quitclaim Deed Requirements
There are multiple requirements for formatting and content that need to be included in a quitclaim deed in Michigan.
Formatting Requirements.
Formatting requirements in Michigan for documents executed after April 1, 1997:
- The deed must be printed in black ink on 20-pound white paper.
- Paper size must be between 8.5 x 11 to 8.5 x 14 inches.
- Text size must be a minimum of 10 points.
- Margins must be 2.5 inches on the top of the first page and 0.5 inches on all other sides.
Content Requirements.
Content requirements in Michigan for documents executed after April 1, 1997:
- Insert the deed title “’Quitclaim Deed”.
- All Michigan quitclaim deeds should contain a consideration clause worded as follows: “A.B. quit claims to C.D. (here describe the premises) for the sum of (here insert the consideration)”
- Both Grantor and Grantee’s full names and address, city, and state.
- Drafter’s information.
- Property address
- Legal description of the property.
- Transfer Date
- Deeds recorded before April 6, 2017, must include the marital status of male Grantors.
- Consideration clause.
- If transfer tax is owed, the property’s total value or a Transfer Tax Valuation Affidavit must be attached.
- If the property is on unplatted land, the following must be included:
- A statement on transferring division rights under platting exemptions must be included; otherwise, division rights stay with the retained parent tract or parcel.
- A statement that informs the Grantee about the potential presence of agricultural activities and the legal protections afforded to farmers under the Michigan Right to Farm Act.
Who Signs a Quitclaim Deed in Michigan?
In Michigan, quitclaim deeds require the signature of the Grantor and Grantee. The Grantor must have their signature authenticated by a notary. The notarization can be completed online and signed electronically.
How to File a Quitclaim Deed in Michigan
Here’s how to file a quitclaim deed in Michigan:
- Once the quitclaim deed is drafted, all required parties must sign the document.
- If a drafter prepares the documents, ensure their information is recorded.
- Complete and file a Property Transfer Affidavit with the assessor for the city or township where the property is located within 45 days.
- Submit the completed set of documents, along with the applicable fees, at the Michigan Register of Deeds.
How Much Does it Cost to File a Quitclaim Deed in Michigan?
The cost to file a quitclaim deed in Michigan is $30 per document.
What Taxes Are Owed on Quitclaim Deeds in Michigan?
In Michigan, the purchase of property using a quitclaim deed triggers two separate taxes:
- State Transfer Tax – The state transfer tax rate is $3.75 per $500 of the value of the property transferred.
- County Transfer Tax – The county transfer tax rate is $0.55 per $500 of the value of the property transferred.
In Michigan, a number of transfers that are generally filed under quitclaim deeds are tax-exempt, including:
- A conveyance from an individual to that individual’s child, stepchild, or adopted child, grandchild, step-grandchild, or adopted grandchild.
- Conveyance between spouses or married couples creating or disjoining a tenancy by the entities in the Grantors or the Grantor and his or her spouse.
- A written instrument to confirm a title already vested in a Grantee, including a quitclaim deed to correct a flaw in the title.
- A written instrument used to straighten boundary lines if no monetary consideration is given.
Moreover, federal taxes such as Gift Tax and Capital Gains Tax may also be applicable.
How Long Does a Quitclaim Deed Take to be Recorded in Michigan?
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.
What Happens After a Quitclaim Deed is Recorded in Michigan
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.
How Long Are Quitclaim Deeds Valid For in Michigan?
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.
Sources
- 1 Michigan Legislature § 565.3
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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.
Source Link - 2 Michigan Legislature § 565.152 - Form; quit claim deed
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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..
Source Link - 3 Michigan Legislature § 565.201
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Requirements for recording with a register deeds.
Source Link - 4 Michigan Legislature § 565.201; Sec 1(i)
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If the instrument is executed after January 1, 1964, the instrument contains the name and business address of the person who drafted the instrument.
Source Link - 5 Michigan Legislature § 565.201; Sec 1(f)
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Requirements for each sheet of instruments executed after April 1, 1997.
Source Link - 6 Michigan Legislature § 565.201; Sec 1(f)(ii)
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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.
Source Link - 7 Michigan Legislature § 565.221
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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..
Source Link - 8 Michigan Legislature § 207.504
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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..
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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. - 9 Michigan Legislature § 207.525 (3)
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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..
Source Link - 10 Michigan Legislature § 207.525 (4)
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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…
Source Link - 11 Michigan Legislature § 565.201; Sec 1(c)
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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.
Source Link - 12 Michigan Legislature House Bills 6294
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i) Michigan Legislature House Bills 6294
“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…..”iii) Michigan Legislature House Bills 6296
“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…”
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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… - 13 Michigan Legislature § 600-2567
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(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.
Source Link - 14 Michigan Legislature § 207.525
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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.
Source Link - 15 Michigan Legislature § 207.504
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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.
Source Link - 16 Michigan Legislature § 600-2567
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207.526 Written instruments and transfers of property exempt from tax.
Source Link - 17 Michigan Legislature § 600.5807
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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.
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