When you request an estimate from us for a deed project, we typically send it as 2 options — 1) “Deed prep only” — a flat fee to prepare the deed, and 2) “Full service” — the total cost of the deed PLUS recording fees PLUS any applicable transfer and recordation taxes PLUS processing the recording. You would be surprised at all that goes into even the simplest of title/deed changes. Full service covers everything.
Our estimates typically look like this:
Deed prep only: $x — We prepare the deed and send to the client electronically. No additional services are provided.
Full service: $y — We prepare the deed, we prepare supporting documents as needed, we prepare the land intake sheet and assemble the recording package, and then we handle all aspects of the recording process and payment, often through the SimpliFile online platform.
Below is an overview of the main issues we address in a deed prep project.
Identifying the property
The first step is to confirm the property information and find and pull most the recent recorded deed to the property. If the property was transferred within the past few decades and that deed includes the full property interest, this step is fairly easy as it just involves a quick search of the tax and local land records. However, if the latest deed relates to only a portion of the property (a percentage interest less than 100% or a single parcel out of several the client wishes to transfer) then the most recent deed would not suffice… more title research would be required.
Confirming the current owners
Once we identify the property, we then need to ascertain who is/are the current owners of the property. This requires us to determine the current status of all of the owners of record. Is everyone named still living? Are there heirs or successors to deal with? And so on.
Let’s look at this aspect of the process through a hypothetical. Imagine that a married couple takes title to a property as tenants by the entirety. The husband then dies. His death and this particular tenancy election results in the surviving spouse becoming the 100% owner of the property. This surviving tenant scenario is fairly common in title chains.
But with the same hypothetical property let’s say rather than a married couple it is two (2) siblings that take title to the property as tenants in common. Due to that tenancy election, we will end up with a completely different result when one owner passes away. Upon the death of one sibling, that interest would pass to the decedent’s heirs. However, in both MD and DC such a transfer does not happen automatically but rather through the probate process. The death leaves 50% owned by the surviving sibling and 50% owned by the estate of the deceased sibling. A Personal Representative would need to be appointed by the probate court to sign a deed for that 50% interest.
Dealing with transfer taxes
Another factor in the cost analysis would be the identification and satisfaction of applicable transfer and recordation tax exemptions. In Maryland there are 3 types of deed taxes/stamps and in DC there are 2.. If you are claiming an exemption from any of the taxes, the deed and paperwork submitted with the recording need to cite to the correct State/County/City code and you may need to document proof of the exemption via notarized affidavits, copies of fully executed supporting documents, etc.
Calculating the full cost of the deed recording
If we are retained to take care of a deed preparation project as a “full-service” endeavor, we handle the recording of the deed, including the calculation and submission to the clerk of all funds needed to accomplish the transfer. Many intra-family transfers involve the full or partial application of exemptions. So while a transfer may be exempt from state transfer and/or state recordation taxes, it may not be exempt from county transfer taxes OR it may be partially exempt from some or all. We do all the math and confirm figures with the clerk prior to submission.
A note about ground rent redemption deeds
Ground rent redemption deeds require both chains of title (leasehold and fee) to be researched. What occurs in the redemption process is that the leasehold and fee interests are merged together as one and the ground rent is forever extinguished. Tracking down the original ground lease can significantly increase the work required to do this. You may need to search back to the mid-1800s to find that lease and that can involve deciphering old, handwritten instruments. We cannot adequately estimate a ground rent redemption request until completing at least a preliminary review of both chains of title. And if a ground rent is not registered, redemption may not even be possible by deed… the SDAT redemption process could be the only route. That can take upwards of 1 year.
Deed preparation only projects
A good estimate for a “deed preparation only” project is $175-350. That’s just 30-60 minutes of attorney time. Call around and you’ll find that to be very reasonable. With a “deed prep only” project, the client would be responsible for preparing and processing the recording… which at a minimum requires completing a land intake sheet and dealing with the clerk. Most clients elect “full-service” when they discover how much work the recording process entails.