Legal Question in Real Estate Law in Maine
Quit Claim
Originally, my sister and I bought our mother's house from her but I have paid the mortgage and repaid her investment long ago. She has agreed to do a quit claim. Do we have to list a purchase price or property value in the quit claim? We just want the ownership in one name not both and don't want to pay a heavy real estate tax transfer burden.
1 Answer from Attorneys
Re: Quit Claim
Even if the property is gifted, there is still a transfer tax to pay when the deed is recorded. The transfer tax will be calculated on the fair market value, which, without having to pay for an appraisal, would be the town tax valuation. The transfer tax is 2.20 per 1,000 for each party, so if the property is valued at 200,000 each side would have to pay $440.
You would be exempt from transfer tax is the gift was between parent-child or spouses, but siblings are not exempt.
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