A Utah quitclaim deed is a legal instrument for property conveyance, enabling the owner (grantor) to transfer real estate to a recipient (grantee) without making promises about the quality of the ownership or the presence of encumbrances. This document includes the buyer’s and seller’s details, consideration amount (if applicable), and property description.
Laws & Requirements
Statute: Utah Code § 57-1-13 provides the statutory form for quitclaim deeds. It implements the word “quitclaim” for clarity. If a boundary line agreement operates as a quitclaim deed, it must meet the requirements in Utah Code § 10-9a-524 or Utah Code § 17-27a-523 (whichever is applicable).
Signing Requirements: The grantor must sign the quitclaim deed and have a notary public acknowledge it with their stamp and seal (Utah Code § 57-3-101).
Recording Requirements: The grantor must record their quitclaim deed with the local County Recorder’s Office in the county where the property is located (Utah Code § 57-3-101).
Transfer Tax: No.
Additional Documents: The grantor must submit a Water Rights Addendum with the deed even if there are no rights to water on the property (Utah Code § 57-3-109).
How to File
- Reference the Original Deed: Access the original deed to learn the property’s legal description.
- Consult an Attorney: Ask an attorney for guidance to ensure you properly fill out and file the deed.
- Complete the Quitclaim Deed: Use our template to fill out all required sections.
- Complete the Water Rights Addendum: Complete the Water Rights Addendum so you can add it to your quitclaim deed.
- Sign and Notarize: Sign the finished deed before a notary public.
- File with the County Recorder: File your deed with the county recorder. Ensure to use the office in the relevant county.
Costs and Fees
Filing Fees:
- Recording fees: The recording fee is $40 per instrument with no page limit (Utah Code § 17-21-18.5(1)(b)).
Taxes:
- Real Estate Transfer Tax: Utah doesn’t charge a tax when conveying real estate.
- US Gift Tax (Form 709): While Utah doesn’t impose a state-level gift tax, a conveyance via a quitclaim deed may be subject to US federal gift taxes if the grantee didn’t provide consideration for the property.
- Capital Gains Tax: At the state level, Utah charges capital gains tax as ordinary income, meaning it’s subject to a rate of 4.65%. Parties must pay applicable federal capital gains tax, too, which the IRS discusses in Topic no. 409.
Frequently Asked Questions
What Are the Potential Liabilities That Using a Quitclaim Deed in Utah May Present?
Potential liabilities can include undisclosed heirs, unrecorded encumbrances, and inaccurate property descriptions. You can safeguard against these issues by conducting a thorough title search and securing title insurance before conveying the property.
When Should I Use a Quitclaim Deed in Utah?
Consider using a quitclaim deed in Utah when you don’t sell the property for significant value. For example, you may use it when conveying property to family members, removing/adding a spouse from a title, or transferring property into a trust. You may also use it to clarify the property’s boundary lines.
How Does a Quitclaim Deed Affect a Mortgage in Utah?
A quitclaim deed conveys property without affecting the underlying mortgage. If the property has a mortgage, the original borrower must still pay the debt. The grantee only becomes responsible for the mortgage if they have specifically agreed with the lender to do so.
