What is a Quitclaim Deed in South Dakota?
In South Dakota, a quitclaim deed transfers property from an owner (“Grantor”) to a new owner (“Grantee”) with a limited warranty. The Grantor promises that during their period of ownership, the property was not transferred to anyone else and is free from any legal claims or burdens at the time of the transfer.
A quitclaim deed without covenants, on the other hand, transfers property without a guarantee on the property’s title.
The most common use of quitclaim deeds without covenants is between parties with high levels of trust, such as family members or close friends.
What is the Difference Between Quitclaim Deeds and Warranty Deeds in South Dakota?
The main difference between quitclaim deeds and warranty deeds in South Dakota is that a quitclaim deed provides less security to the Grantee.
Warranty deeds ensure the Grantor’s complete ownership of the property, free from any title issues throughout its history.
Special Warranty Deeds
In South Dakota, a special warranty deed is similar to a quitclaim deed in that both instruments involve the Grantor promising that the deed is free from title issues caused by them during their period of ownership.
Warranty deeds are mostly used for real estate transactions in South Dakota.
How Do Quitclaim Deeds Work in South Dakota?
Laws surrounding quitclaim deeds are found under Chapter 43 of South Dakota’s Codified Laws titled Property.
A quitclaim deed without covenant in South Dakota must clearly state that no warranties are included in the transfer. The deed must state that the Grantor “conveys and quitclaims the property without covenants of title and disclaiming all expressed or implied warranty under the law of South Dakota.
The term “grant” is not used in South Dakota quitclaim deed without covenant as it implies warranty.
Once prepared, the quitclaim deed must be filed at the Register of Deeds in the county where the property is located.
Can You Prepare Your Own Quitclaim Deed in South Dakota?
You can prepare your own quitclaim deed in South Dakota. A professional drafter is not legally required.
The name and address of the individual who prepared the deed, however, must be mentioned under “Prepared by.”
South Dakota Quitclaim Deed Requirements
For a quitclaim to be legally valid in South Dakota, the deed must follow certain state-specific rules.
Formatting Requirements
Formatting requirements for quitclaim deeds in South Dakota include:
- Paper size: must be between 8.5 x 11 (letter) and 8.5 x 14 (legal).
- Paper quality: 20 lbs; white color only.
- Font: minimum size 10-point type; black or blue.
- Text: printed, typed, or computer-generated in black ink.
- Margins should be as follows:
- First page: right side must have a minimum of 3 inches on the top for official use.
- The left side of the margin (above) must have the preparer’s information.
- All remaining pages and sides must be 1 inch.
Content Requirements
Remaining content requirements for quitclaim deeds in South Dakota include:
- The Grantor’s name and address.
- The Grantee’s name and address.
- The Grantor’s marital status, and spouse’s name (if any).
- The Grantee’s marital status, and spouse’s name (if any)
- Return name and address.
- Preparer’s name and address.
- The title “Quitclaim.”
- If the transfer is tax-exempt, the basis of the exemption must be on the first page.
- The property address.
- The property’s homestead status.
- Property’s legal description.
- Granting clause – a statement describing the transfer the parties have agreed to.
- Consideration – the value or the amount of money exchanged.
Who Signs a Quitclaim Deed in South Dakota?
For a quitclaim deed to be legally valid in South Dakota, it must be signed by the Grantor. The Grantor’s signature must be acknowledged by a notary public or a subscribing witness.
If the Grantor is married, and if the property is a homestead, both spouses must sign the quitclaim deed.
How to File a Quitclaim Deed in South Dakota
Here’s how to file a quitclaim deed in South Dakota:
- Prepare the quitclaim deed with the required information.
- Certificate of Real Estate Value.
- All quitclaim deeds transferring property in South Dakota must be accompanied by a certificate of real estate value (Form PT 56)
- The Certificate must be submitted with the deed when filing.
- Property Disclosure Statement.
- All quitclaim deeds used for the sale and transfer of residential real estate ownership must be accompanied by a Property Disclosure Statement.
- Many transfers generally filed under quitclaim deeds are exempt from the requirement to file the Disclosure, including:
- Transfers between co-owners.
- Transfers to family members in a direct line of descent.
- Transfers between spouses due to divorce or separation agreements.
- Transfers that fix errors in previously recorded deeds without changing ownership.
- Ensure the Grantor signs and executes the quitclaim deed before a notary public, justice, or commissioner. Once prepared, the quitclaim deed must be filed at the Register of Deeds in the county where the property is located.
How Much Does it Cost to File a Quitclaim Deed in South Dakota?
In South Dakota, the minimum charges for filing a quitclaim deed are as follows:
- Fee for the first 50 pages: $30.
- Fee for each additional page: $2.
What Taxes Are Owed on Quitclaim Deeds in South Dakota?
In South Dakota, the transfer of property using a quitclaim deed triggers the following tax:
Real Estate Transfer Fee:
- Tax rate: $0.50 per $500, or fractional part thereof.
- The tax (or ‘Fee’) is calculated based on the value of the property.
- The Grantor is responsible for paying the transfer tax when recording the quitclaim deed at the Register of Deeds.
- Many transfers that are generally filed under quitclaim deeds are exempt from South Dakota’s Property Transfer Tax, including:
- Deeds confirming or correcting a previously recorded deed.
- Transfers between spouses or between parents and children with nominal consideration.
- Deeds drawn during partition proceedings.
- Transfers resulting from corporate mergers, consolidations, or reorganizations.
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 South Dakota?
The time it takes to record a quitclaim deed in South Dakota Varies by county; however, most Register of Deeds offices process the document within a few business days or weeks.
What Happens After a Quitclaim Deed is Recorded in South Dakota?
When a quitclaim deed is submitted to the county Register of Deeds, it undergoes an initial check to ensure compliance with regulations. If the deed is clear of any previous filings, the document is stamped, indexed by assigning a book and page number, and entered into the state system of records.
Finally, the original deed is mailed back to the address on file, and a public record of the transfer of the property’s ownership is officially established.
How Long Are Quitclaim Deeds Valid For in South Dakota?
There is no expiration for quitclaim deeds in South Dakota. However, the statute of limitations for a breach of a written contract is 6 years.
Sources
- 1 South Dakota Codified Laws §43-25-11
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From the use of the words “remise,” “release,” or “quitclaim” in any conveyance by which an estate or interest in real property is to be passed, the following covenants on the part of the grantor to the grantee, his heirs, or assigns, are implied…. That previous to the time of the execution of such conveyance the grantor has not conveyed the same estate or any right, title, or interest therein to any person other than the grantee; and.. That such estate is at the time of the execution of such conveyance free from encumbrances made, done, or suffered by the grantor.
Source Link - 2 SDCL §43-25-6
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Every such instrument duly executed as required by law shall be a conveyance in fee simple of the premises described to the grantee.. with covenants on the part of the grantor.. that he is lawfully seized of the premises in fee simple, and has good right to convey the same.. That the premises are free from all encumbrances;
Source Link - 3 SDCL §43-25-7
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Quitclaim deed–Standard form. The standard form of quitclaim deeds in this state is as follows: QUITCLAIM DEED.. grantor, of county.. for and in consideration of … conveys and quitclaims to..
Source Link - 4 SDCL §43-25-10
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From the use of the word “grant” in any conveyance by which an estate of inheritance or fee simple is to be passed, the following covenants…are implied unless restrained by express terms contained in such conveyance.. That previous to the time of the execution of such conveyance, the grantor has not conveyed the same estate, or any right, title, or interest therein, to any person other than the grantee…
Source Link - 5 SDCL §43-28-1
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Recording of instruments affecting real estate with register of deeds… Any instrument affecting the title to or possession of real property may be recorded as by law provided.
Instruments entitled to be recorded must be recorded by the register of deeds of the county in which the real property affected thereby is situated.
Source Link - 6 SDCL §7-9-1
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“…Any document presented for recording with the register of deeds shall contain a typed, stamped, or printed legend stating the words, prepared by, followed by the name, address, and telephone number of the preparer..”
Source Link - 7 SDCL §43-28-23
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Any real estate document recorded with the register of deeds, except for plats, shall… Consist of one or more individual sheets measuring no larger than 8.5 inches by 14 inches and no smaller than 8.5 inches by 11 inches…black ink and the print type of the document may not be smaller than 10-point type..
Source Link - 8 Content Requirements
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I. SDCL §7-9-7
No register of deeds may accept for record in the office of the register of deeds.. Any deed, .. or affidavit for succession to real property pursuant to… that does not include the names of the grantor and the grantee or the lessor and the lessee, the names of the joint tenant, the post office address of the grantee or lessee, and a legal description of the property conveyed or leased..
II. SDCL §43-28-19
Recitals as to the marital status of parties to the instrument, or as to the homestead status of the property, or as to the identity of parties named in instruments in the chain of title, in any conveyance or other instrument affecting title to real estate in this state, which has been, or hereafter shall be, recorded in the office of the register of deeds for the county…
- 9 SDCL §43-4-23
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Exempt transfers to be marked… Each transfer of title not subject to the fee as provided in § 43-4-21, shall have the words “exempt from transfer fee” stated thereon and indicate the applicable subdivision of § 43-4-22 under which the exemption is claimed.
Source Link - 10 Acknowledgement
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“… a paper document that is to be recorded or filed in the register of deeds’ records as provided in this section or other applicable law shall contain the original signatures of the parties who execute the document … original signatures of the notary public, witnesses or other officer taking an acknowledgment….”
II. ASDCL §43-25-26
The execution of a grant of an estate in real property, other than an estate at will or for a term not exceeding one year, if it is not duly acknowledged, must, to entitle the grant to be recorded, be proved by a subscribing witness, or as otherwise provided in §§ 43-28-8 and 43-28-10…
- 11 SDCL §43-31-17
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A conveyance or encumbrance of a homestead by its owner, if married and both husband and wife are residents of this state, is valid if both husband and wife concur in and sign or execute such conveyance or encumbrance either by joint instrument or by separate instruments…
Source Link - 12 SDCL §7-9-7
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Names, addresses, and descriptions required in recorded instruments–Certificate of value… No register of deeds may accept for record in the office of the register of deeds.. Any deed, affidavit terminating joint tenancy or life estate interests, or oil, gas, or other mineral lease, or affidavit for succession to real property pursuant..
Source Link - 13 SDCL §43-4-38
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The seller of residential real property shall furnish to a buyer a completed copy of the disclosure statement before the buyer makes a written offer. If after delivering the disclosure statement to the buyer or the buyer’s agent and prior to the date of closing for the property or the date of possession of the property…
Source Link - 14 SDCL §43-4-43
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Transfers pursuant to court order…transfers between spouses resulting from a judgment of dissolution of marriage or legal separation… Transfers made to a spouse, a child, a parent, a sibling, a grandchild, or a grandparent;
Source Link - 15 SDCL §7-9-15
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The register of deeds shall charge and receive the following fees.. For recording deeds, mortgages, and all other instruments not specifically provided for in this section or this code, the sum of thirty dollars for the first fifty pages plus two dollars for each additional page..
Source Link - 16 SDCL §43-4-21
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A fee is hereby imposed at the rate of fifty cents for each five hundred dollars of value or fraction thereof upon the privilege of transferring title to real property in the State of South Dakota, which fee shall be paid by the grantor.
Source Link - 17 SDCL §43-4-22
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The fee imposed by § 43-4-21 does not apply to any transfer of title.. Which confirms or corrects a deed previously executed and recorded… Between husband and wife, or parent and child with only nominal actual consideration therefor…. On partition…
Source Link - 18 SDCL §28-01-16
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The following actions must be commenced within six years after the claim for relief has accrued:…an action upon a contract, obligation, or liability, express or implied, subject to the provisions of sections.. ..An action for trespass upon real property.. An action for taking, detaining, or injuring any goods or chattels, including actions for the specific recovery of personal property.
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