Michigan Requirements for Quitclaim Deeds

Quitclaim deeds—also called quit claim deeds in the Michigan legislature—are one of several types of deeds allowed under Michigan law. They are the easiest and least expensive deeds to use for transferring property because they don't require you to conduct a title search. Immediate family members most commonly use quitclaim deeds because there's a level of trust between the parties. Family is one thing, but in general, it’s best to only accept a quitclaim deed if you know or trust the grantor.

Other types of deeds offer more protection for the grantee—such as a warranty deed, which may represent  that the title is good, the property doesn't have liens or undisclosed easements, or other matters. In a warranty deed, the grantor is generally on the hook if any of the representations made in the deed turn out not to be true, which incentivizes them to do due diligence to clear the deed and disclose any possible issues. Understanding the laws regarding quitclaim deeds in Michigan will help you transfer property to your grantee with confidence.

What is a quitclaim deed?

A quitclaim deed is a legal document that allows you to transfer the title of a property faster, but with a higher risk. In a quitclaim, the grantor—or person who transfers the property—transfers the deed to the grantee—or person who receives the property.

However, unlike warranty deeds, a quitclaim deed doesn't guarantee you have a valid title, as it transfers only the part of the property the grantor actually owns. If the grantor owns one-fourth of the property, that's all they can transfer to the grantee.

Quitclaim deeds at a glance

• A legal document that allows a grantor to transfer interest in real property to a grantee
• The process is faster and easier than a warranty deed, but offers less protection
• The grantor doesn't guarantee that their interest in the property is actually valid
• A quitclaim deed is a permanent transfer of ownership between the grantor and grantee
• Rules and regulations for quitclaim deeds are state specific

Most common uses for a quitclaim deed

Quitclaim deed transfers are most commonly used for:

• Transferring property between immediate family members
• Transferring property between spouses
• Transferring property in the event of divorce
• Transferring ownership of property to a living trust during an estate plan
• Fixing errors on an existing title

How to fill out a quitclaim deed in Michigan

To simplify the process of filling out a quitclaim deed, Michigan online forms can be located at your county’s Register of Deeds website. The steps outlined below will walk you through how to personally fill out a Michigan quit claim deed form through the Register of Deeds. 

That said, transferring property through a deed is a delicate and major transaction. LegalZoom’s quit claim deed form service further simplifies the process for you, while ensuring your deed is legally infallible. 

1. Locate your county's form

Michigan uses Quit Claim Deed Form 863, which is different in each county. You can locate the appropriate Michigan quitclaim deed form at the office or website of the Register of Deeds in the county where the property is located. Although there are other Michigan "quit claim" deed forms that don't contain a number, all acceptable forms contain language that the grantor relinquishes ownership interest in the property.

2. Gather the required information

Each Michigan quit claim statutory form requires the same basic information, including the names and addresses of the grantee and grantor, the property description (which you can get from a prior deed to the property or from the county Register of Deeds Office), and the amount of money being exchanged for the property.

3. Fill out the quitclaim deed 

Make sure you describe the property exactly as it is on prior deeds. In order to comply with contract law, you must include the dollar amount of money being exchanged, even if it's only one dollar, which is usually the amount paid when property is being given to a close family member or friend. 

4. Sign and date your deed

Sign and date the quitclaim deed in a notary's presence, then file it with the county Register of Deeds Office in the property's county, not the county where you live. Once the deed is filed and recorded, the transfer is deemed legal. If you're not sure how to fill out a quitclaim deed, you can use LegalZoom’s online service to prepare a quitclaim deed for you.

Quitclaim deed requirements in Michigan

According to Michigan legislature, the state requirements to complete a quit claim statutory form are pretty straightforward.

You will need to include the following:

• A phrase indicating that the grantor "quit claims" to the property (Section 565.152)
• A legal description of the property (Section 565.152)
• The sum of money that the property title is exchanged for (can be arbitrary) (Section 565.152)
• Names and addresses of the grantor and the grantee (Section 565.201)
• The signatures of both parties involved, made in the presence of a notary public (Section 565.8).

In addition to the information you need to include in your quit claim deed form, Michigan legislature Section 565.201 also outlines some rules for the document itself. Michigan only accepts deeds that meet the following requirements:

• Appears on standard or legal size paper (8.5 x 11 inches or 8.5 x 14 inches)
• Is written in black ink
• Is written in 10-point or larger font
• Has 2.5-inch margins at the top of the first page
• Has 0.5-inch minimum for margins on the rest of the page
• Displays a legible title on the first printed line describing what the document is

These requirements are important for the County Recorder's Office to be able to file your deed correctly and produce legible copies for future reference.

Quitclaim deed transfer tax in Michigan

Before the grantor or grantee records the deed, the grantor must pay transfer taxes in Michigan. Transfer taxes include those imposed by both the state and the county in which the property is located. If the county Register of Deeds Office allows you to file the deed, this shows that the grantor paid all transfer taxes or that the transfer is exempt from taxes.

When you transfer real estate, the state and county charge a fee based on a percentage of the sales price. The grantor is responsible for paying this fee, unless agreed otherwise. You file this fee through a document called the "Real Estate Transfer Valuation Affidavit" for no additional filing charge. In Michigan, State tax is $7.50 per $1000; county tax is $1.10 per $1000.

That said, there are many exemptions in Michigan, including the following tax exempt transfers:

• Transfers from one spouse to the other
• Transfers from a parent to a biological child, stepchild, or adopted child
• Transfers from a grandparent to a grandchild, step-grandchild, or adopted grandchild
• The money being exchanged in the deed is less than $100
• Estates prohibited from taxation by federal statutes
• Transfers between business entities or members of the same business entity

Because the County Register's Office cannot give you legal advice, you may want to speak with an attorney or financial adviser to find out if you can claim any exemptions.

What is the statute of limitations on a quitclaim deed in Michigan?

Michigan has several statutes that permit challenging a quitclaim deed. For example, challenging a quitclaim deed given by a close family member or a court-ordered sale has a five year statute of limitations. The statute for bringing a lawsuit based on fraud or on a contract in Michigan is six years. However, if two people claim title to the same property, the statute of limitations is fifteen years.

If you're the grantee or grantor of a quitclaim deed, you have a limited amount of time to bring a lawsuit against the other party if there are any issues. Many states allow only two years for this challenge, after which you lose the right to sue. Check with an attorney for the limitation period if you want to sue the grantor or grantee of the deed.

Transferring property with a quitclaim deed after divorce

In the event of divorce, couples (or courts) typically choose to divide marital property in one of two ways:

1. By selling the property and dividing the proceeds evenly between both parties
2. By awarding the property to one spouse

It's common to use a quitclaim deed in a divorce settlement when one spouse gives property to the other. Divorcing spouses might choose to use a quitclaim deed for property transactions for the following reasons:

• Spouses know the history of the property's title and know the title's legitimate.
• Quitclaim deeds transfer the entire property to the other spouse while removing the grantor's name from the deed, allowing the parties to sever their relationship.
• Transfer process is quick, easy, and avoids probate.
• Quitclaim deeds work well in conjunction with refinancing mortgages to remove one spouse’s liability.

However, it's important to note that transferring property through a quitclaim deed doesn't affect the status of an existing mortgage. As long as both spouses’ names are on the mortgage, the grantor (transferring spouse) remains legally obligated to pay the mortgage even if they use a quitclaim deed to transfer their interest in the property to the other spouse. 

Other types of deeds in Michigan

Quitclaim deeds in Michigan can give the grantee different types of rights depending on the specific type of deed being offered.

Full rights of survivorship deed

A quitclaim deed can include full rights of survivorship if the grantor gives the deed to another person as a joint tenant. In this case, the quitclaim deed should state that the grantor conveys, or transfers, the property as a “joint tenancy with full rights of survivorship."

Joint tenants equally own the property by quitclaim deed as long as they include full rights of survivorship. Full rights of survivorship means that if one person passes away, the property passes to the survivor without the need to go to probate court.

The Lady Bird deed

Another type of deed, known as a life estate or Lady Bird deed, allows the grantor to enjoy the property during their lifetime, with the property passing to the grantee upon the grantor's death. Only a few states, including Michigan, recognize Lady Bird deeds.

If you're using a quitclaim deed, follow the above steps to record the deed and make sure you claim a tax exemption if you're entitled to it. Despite the risks that sometimes come with using a quitclaim deed, it remains one of the most often-used deeds in Michigan because of its simplicity and affordability.

Warranty deed

A warranty deed also transfers real property, but comes with more protection for the grantee. Unlike a quitclaim deed, a warranty deed is a guarantee by the grantor that they hold clear title—meaning there are no liens, conditions, or restrictions on that property—and has the right to sell it to the grantee.

Covenant deed

A covenant deed provides protection only for the time that the grantor owned the property. Under a covenant deed, the grantor guarantees that they didn't cause any title issues while they owned the property. However, the grantor doesn't offer any warranties regarding what may have occurred before personally acquiring the property's title.

Despite the risks that sometimes come with using a quitclaim deed, it remains one of the most often-used deeds in Michigan because of its simplicity and affordability. If you're using a quitclaim deed, follow the steps here to record the deed and make sure you claim a tax exemption if you're entitled to it.

FAQs 

Do you need a lawyer to create a quitclaim deed?

No, Michigan doesn't legally require you to work with a lawyer to create and file a quitclaim. That said, a legal expert who's familiar with state regulations as well as your individual case can be an invaluable asset in ensuring a smooth and legally valid transfer of property ownership.

How much does a quitclaim deed cost?

A quitclaim costs $30 to file in Michigan, according to Section 600.2567 of Michigan legislature. This is the basic fee to file any deed—including a quitclaim deed—in Michigan. There are other optional additional costs, such as a $5 fee to certify a recorded document and a $1 per page fee for copies of the certified deed document.

Is a quitclaim deed permanent?

Yes, once a quitclaim deed is registered with the County Register of Deeds, the transfer is permanent. This is why it’s important to have complete confidence when transferring or receiving property with a quitclaim deed. It’s a good idea to consult an attorney to ensure the process is smooth and fair.

Ronna L. DeLoe, Esq. contributed to this article.