What is a Quitclaim Deed in New Mexico?
In New Mexico, a quitclaim deed is used to transfer property from an owner (“Grantor”) to a new owner (“Grantee”), without any promises or guarantees about the property’s title. Quitclaim deeds are a quick way to transfer property but they offer the lowest security among real estate deeds in New Mexico.
The most common use of quitclaim deeds is between parties with high levels of trust, such as family members or close friends.
What is the Difference Between a Quitclaim Deed and a Warranty Deed in New Mexico?
The main difference between quitclaim deeds and warranty deeds in New Mexico is that a quitclaim deed provides less security to the Grantee.
A warranty deed provides legal protection to the new owner because it confirms that the Grantor owns the property and has the right to make a transfer.
Warranty deeds are mostly used for real estate transactions in New Mexico. Quitclaim deeds, on the other hand, are used for transfers between family and friends.
How Do Quitclaim Deeds Work in New Mexico?
Laws surrounding quitclaim deeds are found under Chapter 47 of the New Mexico Statutes, titled Property Law.
New Mexico laws provide the sample language to be used in a quitclaim deed. It must state that the Grantor intends to “quitclaim” the property to the Grantee. The term “grant” is not used as it implies warranty.
Once prepared, the quitclaim deed must be filed at the Office of the County Clerk in the county where the property is located.
Can You Prepare Your Own Quitclaim Deed in New Mexico?
You can prepare your own quitclaim deed in New Mexico. A professional drafter is not legally required.
New Mexico Quitclaim Deed Requirements
Most formatting standards in New Mexico are those that counties have uniformly adopted and standardized throughout the state.
Formatting Requirements
Formatting requirements for quitclaim deeds in New Mexico include:
- Paper: between letter (8.5 x 11) and legal (8.5 x 14); 20lb white.
- Text: minimum 8-point Maximum.
- Margin: 1 x 4-inch space on top right of first page, all other pages and sides must have a minimum 1 inch.
Content Requirements
Content requirements for quitclaim deeds in New Mexico include:
- Grantor’s name and address.
- Grantee’s name and address.
- Grantor’s marital status.
- Return name and address.
- Name and address for future tax statements.
- Assessor’s parcel number (if available).
- The title as “Quitclaim Deed.”
- Property address.
- Property’s homestead status.
- Property legal description.
- The property description must contain the proper descriptors, including metes and bounds such as section, township, and range, subdivision, each different tract, unit, or block.
- The legal description for the property can be taken from a previously recorded document, including a previously registered deed, mortgage, or plat/map.
- If a secondary document is referenced, information such as the date registered, the book, page, and registration numbers must be mentioned on the deed.
- Granting clause – a statement describing the transfer the parties have agreed to.
- Consideration clause – the value or the amount of money exchanged.
Who Signs a Quitclaim Deed in New Mexico?
For a quitclaim deed to be legally valid in New Mexico, it must be signed by the Grantor. A notary public must acknowledge the Grantor’s signature.
If the Grantor is married both spouses must sign the quitclaim deed. Alternatively, a spousal waiver of rights may be signed and attached to the document.
How to File a Quitclaim Deed in New Mexico
Here’s how to file a quitclaim deed in New Mexico:
- Prepare the quitclaim deed with the required information.
- Residential Property Transfer Declaration Affidavit.
- All instruments transferring real estate ownership in New Mexico must be accompanied by a Residential Property Transfer Declaration Affidavit.
- The form can be completed by the Grantor, Grantee, or a representative and filed at the county assessor’s office within 30 days of filing the quitclaim deed.
- Many transfers generally filed under quitclaim deeds are exempt from requiring to file the Affidavit, including:
- Quitclaim deeds resolving title issues.
- Instrument confirming or correcting a previously recorded deed.
- Instrument between family members with nominal consideration.
- Deeds for nonresidential property transfers.
- Deeds for easement on real property.
- Court-ordered property conveyance.
- Instrument for joint tenancy creation.
- Instrument for gift or estate distribution.
- Once the quitclaim deed is executed, ensure the Grantor’s signature is acknowledged before a notary public.
- Once prepared, the quitclaim deed must be filed at the Office of the County Clerk in the county where the property is located.
How Much Does it Cost to File a Quitclaim Deed in New Mexico?
In New Mexico, the fees charged for filing a quitclaim deed are as follows:
- Base recording fee: $25.
- Each additional block of 10 indexed entries: $25.
What Taxes Are Owed on Quitclaim Deeds in New Mexico?
In New Mexico, property transfers, including those made through quitclaim deeds, are not subject to transfer taxes. However, annual property taxes may still apply and the new owner is responsible for notifying the County Assessor of the purchase and transfer of ownership.
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 New Mexico?
The time it takes to record a quitclaim deed in New Mexico varies based on the county and its workload; however, most offices will process the deed within a few business days.
What Happens After a Quitclaim Deed is Recorded in New Mexico?
When a quitclaim deed is presented at the county clerk’s office, it undergoes a compliance check. The office then scans, documents, and indexes the deed and sends a copy to the county Assessor’s Office for future property tax assessments. Finally, the original deed is mailed back to the address on file.
How Long Are Quitclaim Deeds Valid For in New Mexico?
There is no expiration for quitclaim deeds in New Mexico. However, the statute of limitations for breaching a written contract is 6 years.
