A Missouri quitclaim deed is a straightforward way to transfer real property without providing any warranties about the property title. Essentially, the grantor relinquishes their interest in the property to the grantee without making any legally binding assurances regarding claims or liens against the property. This type of deed is commonly employed in situations such as divorce or property transfers among family members.
Laws & Requirements
Statute: Chapter 442 Titles and Conveyance of Real Estate: Missouri statutes don’t provide a sample quitclaim deed, but including the term “quitclaim” is recommended for clarity. Also, note § 442.130 requires the grantor’s marital status to be specified if they are an individual.
Signing Requirements: § 442.130: The grantor’s signature must be notarized, while witnesses are not obligatory for a quitclaim deed. Another authorized officer can also acknowledge the grantor’s signature.
Recording Requirements: § 442.400: A quitclaim deed should be recorded with the County Recorder of Deeds. This process requires payment of a recording fee. Additionally, under § 59.310, specific formatting guidelines must be met, such as using one-sided printed pages, legible font, proper paper weight, and margins, among other requirements.
Transfer Tax: No
Additional Documents: Some counties, like Boone County, require that a cover page be included with the deed recording.
How to File
- Download Form: Obtain a Missouri-specific quitclaim deed form online to ensure adherence to state guidelines.
- Fill Out Details: Input the document preparer’s and return address details at the top of the deed.
- Identify Parties: Add the grantor’s and grantee’s names, marital statuses, and addresses.
- Describe Property and Consideration: Clearly describe the property and state the payment amount from grantee to grantor.
- Sign and File: Have the grantor (and spouse, if needed) sign before a notary, then file the deed with the relevant county recorder, including payment of any fees.
Costs and Fees
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Filing Fees in Missouri:
- Base fee: $5 for the first page and $3 for each additional page, as specified in Mo. Rev. Stat. § 59.310.
- Counties may impose higher fees; check with the local county recorder’s office for precise charges.
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Taxes Associated with Quitclaim Deeds:
- Documentary Transfer Tax (DTT): Missouri does not levy a real estate transfer tax on property conveyances, making it less costly in terms of taxes compared to many other states.
- US Gift Tax: No state-specific gift tax in Missouri. However, the federal government requires a gift tax on properties transferred with little to no payment, with the specifics outlined in IRS Form 709.
- Capital Gains Tax: Both Missouri and the federal government impose capital gains taxes on property transfers. In Missouri, a short-term capital gains tax applies if the property was owned for less than a year before selling. Federal details are found in IRS Topic No. 409 and Publication 551.
Frequently Asked Questions
How Does a Quitclaim Deed Work in Missouri?
In Missouri, quitclaim deeds transfer property without a warranty of title, meaning they convey the property “as is.”
This is typically used among parties who know each other, such as family members, divorcing couples, or business partners, because it does not provide the grantee with any guarantee about the property’s title quality. The deed must meet specific requirements and be filed correctly to avoid future issues.
When Should You Use a Quitclaim Deed in Missouri?
Quitclaim deeds in Missouri are commonly used in non-commercial transactions where the parties have an existing relationship, like transferring property to a family member, between spouses after a divorce, or when transferring property to a trust or business entity owned by the grantor.
They are generally not used in transactions where the buyer expects some assurance of clear title.
Can a Quitclaim Deed be Used to Transfer Property to a Trust in Missouri?
Yes, a quitclaim deed can be used to transfer property to a trust in Missouri. This is a common practice for property owners who wish to avoid probate by placing their property title in a living trust.
The use of a quitclaim deed for this purpose ensures that the property can be managed according to the trust’s terms without going through probate upon the owner’s death.
Is Title Insurance Necessary When Acquiring Property via a Quitclaim Deed in Missouri?
While not mandatory, obtaining title insurance is highly recommended for those acquiring property through a quitclaim deed in Missouri. Since a quitclaim deed comes with no guarantees regarding the property’s title, title insurance offers protection against potential title issues.
It ensures that any financial loss due to title problems is covered, providing peace of mind to the new owner.
