Deed Tax Corrective Deeds
A corrective deed is a deed that serves to correct and negate a mistake made between parties that have contracted an original deed agreement.
The minimum Deed Tax is due on the recording of a quit claim deed given for the purpose of correcting an error or omission in an original deed.
The quit claim deed used in this situation is sometimes called a “corrective deed.” To qualify as a corrective deed, the quit claim deed must only make changes in the language and content of the original deed on record that would cloud the title if not changed.
Examples:
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If the property sold was not accurately described in the original deed on record, the error must legally be corrected or else the title remains clouded.
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If the grantor’s legal name is not listed on the original deed on record or the grantor does not sign with his or her legal name, the error must legally be corrected or else the title remains clouded.
When there is no additional consideration over $3,000 for executing and delivering the corrective deed over and above the consideration already taxed for the original deed, only the minimum deed tax of $1.65 is charged on the quit claim deed.
