A Maryland quitclaim deed transfers whatever ownership interest the grantor currently holds in a property to the grantee, with no promises that the title is valid or free of liens. That makes it fundamentally different from a warranty deed, where the seller guarantees clear ownership. Maryland law recognizes quitclaim deeds, and they work well for transfers between family members, moves into a living trust, and adding or removing a spouse on a title. Because a quitclaim offers no title protection for the recipient, the legal formalities, recording costs, and tax consequences all deserve attention before the document is signed.
What a Quitclaim Deed Actually Transfers
A quitclaim passes only whatever interest the grantor happens to hold at the time of signing. If the grantor owns the property free and clear, the grantee gets full ownership. If the grantor has no interest at all, the grantee gets nothing and has no legal claim against the grantor for that. Speed and simplicity in exchange for zero guarantees.
That absence of guarantees has practical bite. Because a quitclaim contains no covenants or warranties, many title insurance companies will not issue a new policy based solely on a quitclaim transfer. An existing owner’s title policy may also terminate after a quitclaim transfer, since those policies often require the insured to retain liability through deed covenants. If you are receiving property this way, consider paying for a title search yourself before recording. The cost is modest compared with discovering a lien or a competing ownership claim later.
Quitclaims make the most sense when the parties already trust each other and the title history is well known: transfers between spouses, deeding property to or from a revocable living trust, removing an ex-spouse from a title after divorce, or gifting property to a child.
Legal Requirements for a Valid Maryland Quitclaim Deed
Maryland Real Property Code § 4-101 sets a straightforward bar. The document must contain the full names of the grantor and grantee, a property description specific enough to identify the parcel with reasonable certainty, and a clear statement of the interest being transferred.1Maryland General Assembly. Maryland Code Real Property 4-101 – What Deeds Sufficient; Seal or Attestation Not Required The description typically uses the metes and bounds or the lot, block, and subdivision information from the most recent recorded deed. Including a reference to the book and page (or liber and folio) of that prior deed helps maintain the chain of title.
The deed must be acknowledged before a notary public. Section 4-101 specifies that a deed is sufficient only when “executed, acknowledged, and, where required, recorded.”1Maryland General Assembly. Maryland Code Real Property 4-101 – What Deeds Sufficient; Seal or Attestation Not Required The grantor signs in front of a notary, who verifies identity, applies a seal, and notes the commission expiration date. Without a valid acknowledgment, the clerk will reject the deed.
Every deed recorded in Maryland must also carry a certificate of preparation. Under Real Property Code § 3-104(f), the deed cannot be recorded unless it bears either the certification of a Maryland-licensed attorney that the document was prepared by or under the attorney’s supervision, or a certification by a party named in the deed that the party prepared it.2Maryland General Assembly. Maryland Code Real Property 3-104 – Prerequisites to Recording The certificate must be signed. Formatting matters too: at least a three-inch top margin on the first page and one-inch side margins throughout, reserved for the clerk’s recording stamps.
The granting language is what distinguishes a quitclaim from a warranty or special warranty deed. State that the grantor “quitclaims” or “remises, releases, and quitclaims” the property. Include residential addresses for both grantor and grantee.
The Land Instrument Intake Sheet
Before the clerk will accept the deed, you must submit a completed Land Instrument Intake Sheet with it. Real Property Code § 3-104 requires the intake sheet with every land instrument submitted for recording, with limited exceptions for documents like mortgage releases and powers of attorney.3Maryland Courts. Instructions for the State of Maryland Land Instrument Intake Sheet The form is available from the Maryland Judiciary website or at the circuit court clerk’s office in the county where the property is located.
The intake sheet asks for the property’s account identification number, the consideration paid (even if zero for a gift), and whether the property is a principal residence. You will also need the district, subdivision, and lot number, transcribed exactly as they appear on the most recent tax bill. Any mismatch between the intake sheet and the deed itself can send the whole package back for corrections. You can look up your account number through the Maryland Department of Assessments and Taxation’s Real Property Data Search tool to make sure the information matches state records.4Maryland Department of Assessments and Taxation. Finding Your Property Information Online
Recording Fees and Taxes
Once the deed, intake sheet, and a copy of the deed for the Department of Assessments and Taxation are assembled, you file the package with the Clerk of the Circuit Court in the county where the property sits. Filing can be done in person, by mail, or through authorized electronic recording services.
Recording Fees
Every instrument recorded in the land records carries a base fee of $20 for documents of nine pages or less, plus a $40 surcharge, bringing the standard recording fee to $60.5Maryland Courts. Recording Fees and Taxes Documents over nine pages incur additional per-page charges, and there may be a small fee for the copy submitted to the assessment office.
Recordation Tax
Maryland imposes a recordation tax on deeds based on the consideration paid or the value of the debt secured. State law authorizes the tax, but each county sets its own rate. For fiscal year 2026, those rates range from $2.50 per $500 of consideration in Baltimore County and Howard County to $7.00 per $500 in Charles County and Frederick County.6Maryland Department of Legislative Services. 2026 County Local Tax Rates Montgomery County applies $8.90 per $1,000 on the first $500,000, with a higher rate above that. Converted to a per-$1,000 figure, the recordation tax across Maryland runs roughly from $5 to $14 per $1,000 of consideration.
When a quitclaim involves no monetary consideration, such as a gift between family members, the tax is calculated on the stated consideration, which may be zero or a nominal amount. The intake sheet is where you declare that figure, so accuracy matters.
State Transfer Tax
Separately from the recordation tax, Maryland charges a state transfer tax of 0.5% of the consideration. First-time Maryland homebuyers purchasing a principal residence pay a reduced rate of 0.25%.7Maryland Courts. Recording Fees and Taxes
Family Transfer Exemptions
Many quitclaim transfers between family members qualify for exemptions from both the recordation and the transfer tax. Maryland Tax-Property Code § 12-108 exempts certain transfers from recordation tax, including transfers between a parent and a child and transfers between spouses or former spouses connected to a divorce or separation decree.8Maryland General Assembly. Maryland Code Tax-Property 12-108 – Exemptions Section 12-108 also contains broader provisions for transfers between relatives and between spouses or domestic partners. The transfer tax exemption under § 13-207 tracks the same categories, so a transfer exempt from recordation tax is typically also exempt from transfer tax.9Maryland General Assembly. Maryland Code Tax-Property 13-207
If you claim an exemption, cite the specific code section on the deed itself. Skip that and the clerk will charge standard rates, and chasing a refund afterward is a headache.
Effect on an Existing Mortgage
A quitclaim transfers ownership interest but does nothing to the mortgage. If the property has an outstanding loan, the original borrower stays fully responsible for the payments. Deeding your house to a family member does not remove your name from the loan.
Most residential mortgages include a due-on-sale clause that lets the lender demand full repayment when ownership changes. Federal law limits when that clause can actually be enforced. Under the Garn-St. Germain Act, a lender on a residential property with fewer than five units cannot trigger the due-on-sale clause for several common quitclaim scenarios:
- Adding a spouse to the deed or deeding the home to your children.
- A transfer to a spouse under a divorce decree, legal separation, or property settlement agreement.
- Moving the property into a revocable trust where the borrower remains a beneficiary, as long as occupancy rights don’t change.
- Transfers by inheritance or upon the death of a joint tenant.
These protections apply to residential properties with fewer than five dwelling units.10Office of the Law Revision Counsel. 12 USC 1701j-3 – Preemption of Due-on-Sale Prohibitions Transfers outside these categories, such as deeding property to an unrelated person or to a business entity where the borrower is not a beneficiary, can legitimately trigger the due-on-sale clause. When in doubt, contact the lender before recording.
Federal Gift Tax and Capital Gains Consequences
When a quitclaim transfers property without payment at fair market value, the IRS generally treats it as a gift. Two tax issues follow, and most people overlook both.
Gift Tax Reporting
If the value of the gifted property exceeds the annual gift tax exclusion, which is $19,000 per recipient for 2026, the person making the gift must file IRS Form 709, even if no gift tax is actually owed.11Internal Revenue Service. Gifts and Inheritances Since most real estate is worth far more than $19,000, nearly every quitclaim gift triggers the filing. The form is due by April 15 of the year after the transfer. No tax is usually owed because the excess applies against the lifetime gift and estate tax exemption, but skipping the filing can create problems with the IRS later.
Carryover Basis
When property is gifted during the owner’s lifetime, the recipient inherits the original owner’s cost basis rather than the property’s current market value. This is called carryover basis, and it can produce a much larger capital gains tax bill when the recipient eventually sells. If a parent bought a home for $100,000 and quitclaims it to a child when it is worth $400,000, the child’s basis is $100,000. Selling for $400,000 creates a $300,000 taxable gain.
Property received through inheritance, by contrast, typically gets a stepped-up basis to market value at the date of death. That distinction matters for estate planning. For high-value properties, transferring by quitclaim during the owner’s lifetime instead of through a will or trust at death can cost the recipient tens of thousands of dollars in avoidable capital gains tax. Talk to a tax professional before recording a quitclaim as a gift if the property has appreciated significantly.
Medicaid Look-Back Period
Transferring property by quitclaim for less than fair market value can disqualify the grantor from Medicaid long-term care benefits. Federal law establishes a 60-month look-back period: when someone applies for Medicaid-funded nursing home care, the state reviews all asset transfers made during the five years before the application date.12Office of the Law Revision Counsel. 42 USC 1396p – Liens, Adjustments and Recoveries, and Transfers of Assets
If the state finds that the applicant gave away property, including through a quitclaim, for less than market value during that window, the applicant faces a penalty period of ineligibility. The length is calculated by dividing the uncompensated value of the transferred asset by the average monthly cost of nursing facility care in the state. For a property worth several hundred thousand dollars, that penalty can stretch for years. Anyone considering a quitclaim who might need Medicaid within the next five years should consult an elder law attorney first.
Non-Resident Withholding on Sales
If the grantor is not a Maryland resident and the transfer involves consideration (a sale rather than a pure gift), Maryland requires income tax withholding at the time of recording. As of 2026, the withholding rate for non-resident individuals is 8.75% of the consideration, and non-resident entities pay 8.25%.13Maryland Comptroller. Tax Alert – Rate Change to Withholding on Sale of Real Property by a Nonresident The withholding is remitted at closing and applied toward the grantor’s Maryland income tax return for that year. Transfers with no consideration, such as gifts, generally do not trigger withholding, but the intake sheet must accurately reflect that the consideration is zero.