A Montana Quitclaim Deed is utilized for relinquishing property interests, differing from warranty deeds in not guaranteeing ownership. Typically employed for family or ex-spouse transfers without monetary exchange.
How to File
Filing a quitclaim deed in Montana requires completing the form accurately, signing it properly, and recording it with the county clerk. Taking the right steps helps ensure a smooth property transfer.
Step 1 – Understand Property Titling
When there is more than one grantee, the property can be titled in different ways on a quitclaim deed. The two common forms are:
- Tenants in Common: Each grantee owns a specific share of the property. Shares do not have to be equal, and each owner can sell or transfer their share independently.
- Joint Tenancy with Right of Survivorship: All grantees have an equal share in the property. If one grantee dies, their share automatically passes to the surviving grantees.
Step 2 – Gather Relevant Information
While a quitclaim deed offers a simpler transfer method than warranty or special warranty deeds, it will still need to include all relevant information. You should expect to include:
- The grantor’s name and address
- The grantee’s name and address
- The name and address of the party filling out the quitclaim deed
- The legal description of the property, including its specific location as defined by county records
- Any funds or other property exchanged for the real estate named in the transfer
Expect to fill out the quitclaim deed completely. Without all the information, the deed will not be valid.
You can get the full legal description of a property from the County Clerk and Recorder. The abbreviated version on your property tax bill is due to space limits. For an alternative source, Montana Cadastral offers an online mapping and land ownership database that provides detailed land descriptions.
Step 3 – Fill Out the Paperwork
Montana requires you to use a black or blue pen for any handwritten information included in the quitclaim deed. As you fill out the paperwork, make sure that it includes all relevant details and that you use a standard black or blue ink pen.
Do not sign or date the quitclaim deed as you fill it out. Mont. Code § 70-21-203 requires that the quitclaim deed be notarized. In order to notarize a legal document, the notary will require you to sign and date the deed in front of them. If you sign it ahead of time, you will need to start over by filling out the paperwork.
Do I Have to Submit Additional Forms?
Yes, Montana deeds require a Realty Transfer Certificate (Form RTC). This form, published by the Department of Revenue, provides details about the property transfer, including the sale price (§ 15-7-305(1)).
Certain deeds may be exempt from disclosing the sale price, but the form must note the exemption. The person completing the form must sign it, and both the seller and buyer must review it for accuracy.
Transfer-on-death (TOD) deeds do not require Form RTC at recording (§ 72-6-408). After the owner’s death, the beneficiary must submit Form RTC, the recorded TOD deed, and the death certificate. Some deeds may also need a water rights transfer form.
Step 4 – Have the Document Notarized
Find a notary. Take your government-issued ID with you for proof of identity. The notary will add their seal and signature to the document, which makes it legal. The document also needs to be signed by the grantor.
Step 5 – Take the Quitclaim Deed to the County Clerk and Recorder
Once you have had the document notarized, you can take it to the County Clerk and Recorder (§ 7-4-2611). You should visit the county where the property is located, even if that is different from the county where you live and work, to ensure that the document is filed properly (§§ 7-4-2613(1)(a), 70-21-208).
Make any needed copies of the document, including a copy for all parties involved in the transfer. Having copies on hand will provide you with proof of the transfer if something is lost or does not go through properly.
Plan to pay any fees related to the property transfer as you file the document.
May I Change My Mind About a Quitclaim Deed After It is Filed?
Once a quitclaim deed has been filed with the County Clerk and Recorder, it cannot be revoked unilaterally.
If you change your mind about the transfer, you would need to execute a new deed transferring the property back to the original owner or to a new grantee. This process will involve the same steps as the initial transfer, including notarization and filing.
Step 6 – Register with the County Treasurer’s Office
After the quitclaim deed is filed, the new owner should ensure they are registered with the county treasurer’s office to receive property tax notifications.
It’s important to update the property records to reflect the new ownership so that property tax bills and other important notices are sent to the correct address. You may contact the county treasurer’s office for more information on how to update these records.
Does Montana Allow Electronic Recording?
Yes, but only in counties that have adopted an electronic recording procedure. Not all counties offer this service. Those that do, use third-party vendors who may charge an additional fee. Some counties also provide online access to land records (§§ 30-18-101, et seq).
Counties allowing e-recording include:
Costs and Fees
There are several fees to take into account when transferring property in Montana. Both grantor and grantee can face tax implications in addition to the fees assessed for the property. Consult a tax professional if you have questions about your financial obligations.
Filing Fees
Montana charges a fee of $7 per page for any document filed with the County Clerk and Recorder. If you have a nonstandard document that does not meet the margin, ink color size, and paper size requirements laid out by Mont. Code § 7-4-2636, you can expect to pay an additional $10 fee. Those requirements include:
- Black or blue ink for all handwritten documents
- 8 1/2″ x 11″ or 8 1/2″ x 14″ paper
- 3″ margins at the top of the first page, and 1″ margins for all subsequent pages
- 1″ margins at the bottom of each page
- 1/2″ margins at the sides of each page
Checking your document to make sure that it meets these requirements will help you avoid unnecessary fees.
Taxes
Properly assessing tax implications can ensure that the real estate transfer process goes smoothly and that you do not run into expensive fees later.
Documentary Transfer Tax
While many states require a documentary transfer tax in order to legally transfer property, Montana does not have a real estate transfer tax. However, you will need to fill out a Realty Transfer Certificate as part of the transaction.
US Gift Tax (Form 709)
Form 709 reports any large gifts given, including large property transfers. The gift tax is assessed on any gift given to another party without the expectation of similar value in return.
The gift tax can apply both in situations where the grantor gifts the property to the grantee directly and cases in which the grantor may not charge the full purchase price of the property to the grantee. For example, a parent who sells a property to a child may require the child to pay only a small percentage of the value of the property. In that case, a gift tax would be due on the extra value of the property.
Capital Gains Tax
A capital gains tax is assessed when a property is sold for more than its original purchase price. Real estate values often increase over the time the property is held. When the owner sells the property, they may net a considerable profit. Capital gains taxes would be assessed on the sale price over the initial price of the property.
The IRS does allow some exemptions to the capital gains tax, including cases in which the owner of the property has lived in that property as their primary residence for at least two out of the last five years.
Members of the Uniformed Services, the Foreign Service, or the intelligence community may also have the right to exemptions when they have orders that put them more than 50 miles from their property for at least 90 days, or they must live, on orders, in government housing for at least 90 days. Working with an accountant can help you determine whether you qualify for an exception to the capital gains tax.
Montana Quitclaim Deed Requirements
There are several distinct legal requirements for filing a quitclaim deed in Montana. Making sure you are aware of those requirements can protect you and ensure the legality of the property transfer.
Specific Requirements
Mont. Code § 7-4-2636 lays out several specific requirements that recorded documents, including quitclaim deeds, must follow. These include:
- The names of the grantor and grantee on the first or second page of the document, if it contains more than one page
- A legal description of the property, including its specific location and description in county records
- All signatures, initials, dates, and handwriting in black or blue ink
- The name and address of the party to whom the document will be returned after it is filed
Failure to follow these requirements may mean that the state will not accept the document, which means that your property transfer may not be legalized.
Signing and Notarization
In order to be legal, Mont. Code § 70-21-203 notes that a quitclaim deed must be signed and dated in the presence of a notary.
Filing and Recording
In order to file a quitclaim deed, Montana Code § 70-21-208 notes that parties must take it to the County Clerk and Recorder of the county where the property is located. In addition to filing the deed, the grantee should expect to pay a filing fee.
Transfer Tax
Montana, unlike most other states, does not have a transfer tax to transfer property with a quitclaim deed.
Additional Documents
In addition to the quitclaim deed, Mont. Code § 15-7-305 notes that it is necessary to file a Realty Transfer Certificate with the County Clerk and Recorder. Parties transferring real estate who do not file this form can face fees up to $500.
Validity Requirements
In order to be considered valid, a Montana quitclaim deed needs to:
- Include all relevant information, including names and addresses of the grantor and grantee as well as a legal description of the property
- Be filled out with all handwritten information in black or blue ink
- Include a stamp and signature from a notary
- Be filed with the County Clerk and Recorder’s Office of the county where the property is located
If the document is not filled out correctly or does not contain all relevant information, the document may not be valid, which means the property transfer may not be complete.
Quitclaim Deeds vs. Other Property Transfer Methods in Montana
There are three options available for Montana residents who want to transfer a piece of property. Each one has its own advantages and disadvantages, and choosing the right one is essential to protecting the grantor and grantee in a Montana real estate transaction.
| Quitclaim Deed | Quick and simple property transfers between relatives or within interconnected entities, such as during a divorce, transferring property between parent and child, between corporations, adding a spouse to a title, or correcting a title defect, offer speed and simplicity but do not provide warranty protection for the new buyer. |
| Special Warranty Deed | Transfers property with a warranty limited to the duration the grantor owned the property, often utilized in foreclosures or bank-owned situations, provide a faster alternative to full warranty deeds. This method offers the new buyer some protection, ensuring warranty coverage exclusively for the period the previous owner held the property. |
| Warranty Deeds | Traditional property transfers used in standard sales offer more protection for new buyers through full disclosure, but may decelerate the property transfer process. |
The key difference in Montana property transfer methods is the warranty. A full warranty ensures that there are no liens or encumbrances on the property, while a special warranty clears only the time when the grantor owned the property. Without the warranty, any problems that come up after the property transfer will be the responsibility of the new owner.
Sample Montana Quitclaim Deed
View a free sample Montana quitclaim deed below. Customize the document with your details and download it in PDF or Word format.
Frequently Asked Questions
What are the main differences between a quitclaim deed and a warranty deed in Montana?
A quitclaim deed offers no guarantees about the property’s title, only transferring the grantor’s interest, if any. A Warranty Deed, however, provides the grantee with guarantees against any title defects, including those that may have arisen before the grantor owned the property.
When there is more than one grantee, how is property titled on a quitclaim deed?
Any document that leads to a change in property ownership must include the names of all the grantees. In Montana, the predominant methods for multiple owners to possess title to real property are as tenants in common or as joint tenants with the right of survivorship.
When a quitclaim deed grants real property to several grantees without specifying the manner of holding, it is presumed that the ownership is held as “tenants in common,” unless the quitclaim deed expressly states otherwise.
What is the meaning of joint tenancy with right of survivorship on a quitclaim deed?
Rather than being designated as tenants in common, multiple grantees can indicate to the grantor their preference for the title to be held as a joint tenancy with right of survivorship (JTWROS). This arrangement ensures that upon the death of one joint tenant, the remaining joint tenant(s) automatically inherit the deceased’s share of the real property.
For instance, if three people hold property as joint tenants and one passes away, the remaining two would each own a 50 percent interest. Furthermore, opting for a joint tenancy with right of survivorship can bypass the probate process, a benefit not available when property is held as tenants in common.
