South Dakota Quitclaim Deed

Introduction

Key Things to Know

1. 1

   A quitclaim deed transfers only the interest you actually have. It passes whatever ownership you hold in the property to the grantee and makes no promise that the title is clear, or even that you own anything. A warranty deed, by contrast, guarantees the title, which is why a quit claim deed is used mainly between people who trust each other.

2. 2

   Record it with the register of deeds. Under SDCL Section 43-28-1 an instrument affecting title is recorded by the register of deeds of the county in which the real property is situated. Recording protects the grantee against a later buyer under the state's race-notice priority rule (SDCL Section 43-28-17).

3. 3

   You must sign before a notary. SDCL Section 43-25-26 allows a duly acknowledged deed to be recorded. Acknowledgment means the grantor signs before a notary, and it is the standard way to make a South Dakota quitclaim deed recordable.

4. 4

   No witnesses are required when the deed is notarized. Under SDCL Section 43-25-26 a subscribing witness is only an alternative route to recording a deed that is not acknowledged. Because a quitclaim deed is normally notarized, no attesting witnesses are needed.

5. 5

   Pay the real estate transfer fee. SDCL Section 43-4-21 imposes a fee of $0.50 for each $500 of value, or fraction of it, on transferring title to real property, and the fee is paid by the grantor. A Certificate of Real Estate Value must accompany the deed at recording under SDCL Section 7-9-7(4).

6. 6

   South Dakota has a statutory quitclaim form. SDCL Section 43-25-7 sets out a standard short-form quitclaim deed whose operative words convey and quitclaim all interest in the described real estate. Using it carries no warranty of title, unlike the warranty-deed form in the same chapter.

7. 7

   Both spouses must sign to convey a homestead. SDCL Section 43-31-17 makes a conveyance of a homestead valid only if both spouses sign, whether by one joint instrument or separate instruments, even if only one spouse holds title. Common quitclaim uses include divorce transfers and moving a home into a living trust.

South Dakota Requirements for Quitclaim Deed

• Sign Before a Notary Public

  To record a South Dakota quitclaim deed, the grantor must acknowledge it before a notary public. SDCL Section 43-25-26 lets a duly acknowledged deed be recorded; acknowledgment before a notary is the standard way to make the deed recordable with the register of deeds.

• No Witnesses Are Required When Notarized

  South Dakota does not require attesting witnesses when the deed is acknowledged. Under SDCL Section 43-25-26 a subscribing witness is only an alternative way to record a deed that is not acknowledged, so a notarized quitclaim deed needs no witnesses.

• Record With the Register of Deeds

  Record the signed, notarized deed with the register of deeds of the county where the property is situated (SDCL Section 43-28-1). Recording protects the grantee against a later buyer under South Dakota's race-notice priority rule (SDCL Section 43-28-17).

• Pay the Real Estate Transfer Fee

  SDCL Section 43-4-21 imposes a real estate transfer fee of $0.50 for each $500 of value, or fraction of it, on transferring title to real property. The fee is paid by the grantor and is collected by the register of deeds when the deed is recorded.

• File a Certificate of Real Estate Value

  SDCL Section 7-9-7(4) requires a Certificate of Real Estate Value (Dept. of Revenue form PT-56) to accompany the deed at recording. It states the buyer and seller, the legal description, the actual consideration exchanged, the parties' relationship, and the terms of payment.

• Transfer Fee Exemptions for Gifts and Family

  Some transfers are exempt from the real estate transfer fee under SDCL Section 43-4-22, including absolute gifts, transfers for which no consideration was given, transfers between spouses or between parent and child for nominal consideration, and deeds correcting a previously recorded deed. State the exemption on the deed.

• Use the Statutory Quitclaim Form

  South Dakota provides a statutory short-form quitclaim deed at SDCL Section 43-25-7 whose operative words convey and quitclaim all interest in the described real estate. The form carries no covenants or warranty of title, unlike the warranty-deed form set out in the same chapter.

• Both Spouses Must Sign to Convey a Homestead

  SDCL Section 43-31-17 makes a conveyance or encumbrance of a homestead valid only if both spouses concur and sign, whether by a joint instrument or separate instruments, even when only one spouse holds title. A homestead quitclaim signed by one spouse alone may be invalid.