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.
Laws & Requirements
Statute MCA Title 70, Chapter 21: § 7-4-2636 outlines recording criteria, including party names on the first/second page, property description, signatures in blue/black ink, and specific page margins.
Signing Requirements § 70-21-203: The quitclaim deed must be signed in the presence of a notary public and acknowledged.
Recording Requirements § 70-21-208: Parties must record the quitclaim deed with the County Clerk and Recorder of the county where the property is. There will be a recording fee along with the deed.
Transfer Tax: No
Additional Documents § 15-7-305: Parties must file a Realty Transfer Certificate with the County Clerk and Recorder along with the quitclaim deed. Failure to file this certificate can result in a penalty of up to $500.
How to File
- Determine the Ideal Deed Method: Montana recognizes quitclaim, special warranty, and warranty deeds. Quitclaim deeds are quicker but offer less protection against liens or encumbrances, making other deed types potentially more beneficial for those with concerns about property claims.
- Gather Relevant Information: For a quitclaim deed, include the grantor’s and grantee’s names and addresses, the party completing the deed, the property’s legal description, and details of any exchange. Omitting information invalidates the deed.
- Fill Out the Paperwork: Use black or blue ink for any handwritten sections of the quitclaim deed. Do not sign or date the document yet, as it must be notarized to be valid, which requires signing in the presence of a notary.
- Have the Document Notarized: Find a notary and bring a government-issued ID. The notary will verify your identity, witness your signature, and seal the document, making it legally binding.
- Take the Quitclaim Deed to the County Clerk and Recorder: File the notarized deed at the County Clerk and Recorder’s office where the property is located. Bring necessary copies for all parties and be prepared to pay any filing fees to complete the property transfer process.
Costs and Fees
- Tax Implications and Fees: Both the grantor and grantee may face tax implications and are advised to consult a tax professional regarding their financial obligations related to the property transfer.
- Filing Fees: Montana charges $7 per page for documents filed with the County Clerk and Recorder. A nonstandard document incurs an additional $10 fee. Requirements to avoid this fee include using black or blue ink, using specific paper sizes, and adhering to margin guidelines (§ 7-4-2636).
- Documentary Transfer Tax: Unlike many states, Montana does not impose a real estate transfer tax. However, a Realty Transfer Certificate is required for property transactions.
- US Gift Tax (Form 709): Large property transfers might be subject to the gift tax if the property is given without an expectation of a return of similar value. This includes underpriced sales, such as a parent selling property to a child for less than its value.
- Capital Gains Tax: This tax applies to profits from selling property for more than its purchase price. There are exemptions, notably for properties used as the primary residence for two of the last five years, and for certain service members under specific conditions. Consulting with an accountant is advised to explore possible tax exemptions.
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.
