A Vermont quitclaim deed is a legal instrument enabling a property owner (the grantor) to transfer their ownership stake to a buyer (the grantee). This deed assumes but doesn’t confirm that the grantor has the legal right to renounce a title, interest, or claim to the property.
It’s most common in arrangements where the grantor and grantee have a pre-established relationship with each other. The deed involves no promises, as it only records the details of a property transfer.
Laws & Requirements
Statute: Vermont Statutes Tit. 27, Ch. 5 dictates the legal requirements behind property ownership and transfers in the state.
Signing Requirements: The state requires a quitclaim deed to be signed by the grantor and acknowledged by a notary public (Vt. Stat. Tit. 27 § 301).
Recording Requirements: Per Vt. Stat. Tit. 27 § 341, the grantor must submit a signed and notarized quitclaim deed to the town clerk’s office where the property rests. Unlike other states, Vermont has no county recording system, so the relevant town or city records all documents.
Transfer Tax: Yes (Vt. Stat. Tit. 32 § 9602).
Additional Documents: A transfer tax document, Form PTT-172, must accompany your quitclaim deed for it to be valid.
How to File
- List the Introductory Details: List the preparer’s information and the “Return To” details.
- Note the Consideration: Report the payment from the grantee to the grantor.
- Write Both Parties’ Information: Write the grantee’s and grantor’s names and addresses.
- Add the Property’s Legal Description: Reference the original deed to get the full legal description.
- Sign and Notarize: Sign your name before a notary public so they can authenticate your signature.
- Fill out the Transfer Tax Form: Fill out Form PTT-172 to attach to your deed.
- File the Deed: Visit the appropriate town clerk’s office to file your deed.
Costs and Fees
Filing Fees:
Per Vt. Stat. Tit. 32 § 1671, town clerks charge $15 per page for filing quitclaim deeds. The tax form that must accompany every quitclaim deed, Form PTT-172, costs an additional $15 to file. These fees apply unless otherwise provided by local laws.
Taxes:
- Real Estate Transfer Tax: The real estate transfer tax is 1.25% of the property’s value or $1.00, whichever is greater. Some exceptions exist per Vt. Stat. Tit. 32 § 9602.
- US Gift Tax: A grantor can use IRS Form 709 to determine whether they owe federal gift tax for giving property to a grantee for little to no payment.
- Capital Gains Tax: Vermonters transferring property through a quitclaim deed may owe state and federal capital gains taxes. IRS Topic No. 409 and IRS Publication 551 describe the federal capital gains tax. Within Vermont, capital gains are usually subject to regular personal income tax rates, though long-term gains may be exempt. Capital gains exclusions are detailed on the Vermont Department of Taxes website.
Frequently Asked Questions
When Should a Grantor Consider a Quitclaim Deed in Vermont?
A quitclaim deed could be an effective way for a grantor to convey property when they have a less-than-complete title, or they’re unsure of the title’s quality.
Can I Use a Quitclaim Deed to Transfer a Property with an Existing Mortgage in Vermont?
Yes, but the original owner will remain responsible for the financial obligation of the mortgage unless the lender agrees to take it on through a separate process, such as refinancing or loan assumption.
Can I Use a Vermont Quitclaim Deed to Transfer Property to Anyone?
Yes, but it’s advisable to only use this deed to transfer property to people you know well. You should also ensure they understand the implications of accepting property via this document type.
