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.
How to File
Filing a quitclaim deed in Vermont is simple when you gather the necessary information and file it with the county clerk. Completing the form correctly ensures a smooth transfer.
Step 1: List the Introductory Details
Begin by listing the name and address of the person preparing the document. The preparer may be you as the grantor or a professional drafter or attorney.
You can also fill out the “After Recording, Return To” information. Identify who you’d like to receive a copy of the recorded quitclaim deed after the town clerk finishes the recording process.
Step 2: Note the Consideration
Report the payment from the grantee to the grantor. Write this number out and include it in numerical form (e.g., “Ten thousand dollars ($10,000)”). If you’re transferring property without the grantee providing consideration, you can put $0 or a nominal amount like $10.
Step 3: Write Both Parties’ Information
Write the grantee’s and grantor’s names and addresses (including the cities, counties, and states for the addresses).
Step 4: Add the Property’s Legal Description
Add the address and information about the property as an identifying legal description. These details can include parcel numbers, language from the original deed, or any other information that clarifies the property being conveyed.
Step 5: Sign the Deed
The grantor should provide an original signature on the deed. If there are multiple grantors, you can add additional signature blocks. A notary public will witness the signing and notarize the document with their notary seal, ID number, and commission expiration date.
Step 6: Complete the Transfer Tax Form
Even if you’re gifting the property to the grantee without payment, Vermont requires every deed to be accompanied by a property transfer tax return. Download and fill out Form PTT-172 and bring it with you when filing.
Step 7: File the Deed
Finally, you’ll need to send the notarized quitclaim deed to the town clerk’s office in the city where the property is physically located. Each town clerk has specific requirements and processes. Hence, it’s a good idea to preemptively contact the office to determine fees, additional documents you may need, and procedures you’ll need to follow.
After the clerk’s office has recorded the quitclaim deed, they’ll mail a copy to you and anyone else who included their information in the “After Recording, Return To” section.
Costs and Fees
Recording a quitclaim deed in Vermont means paying recording fees, and a property transfer tax often applies. Planning for these expenses ahead of time can make the process more efficient and less stressful.
Filing Fees
Per Vt. Stat. Tit. 32 § 1671, town clerks charge $15 per page for filing documents like quitclaim deeds that will become a matter of public records. The tax form that must accompany every quitclaim deed, Form PTT-172, costs an additional $15 to file.
Taxes
In addition to a transfer tax, you may be responsible for federal gift and capital gains taxes.
1. Real Estate Transfer Tax
Per Vt. Stat. Tit. 32 § 9602, the state imposes a tax on the transfer of title to real property. All deeds transferring property (even if the transaction doesn’t involve the exchange of money) require a property transfer tax return (Form PTT-172) to be filed along with the deed to the town clerk.
Who Pays the Transfer Tax?
Generally, the grantee (or the person receiving the property) is responsible for paying the transfer tax in Vermont. This requirement differs from other states in which the grantor is responsible.
Exemptions to Transfer Tax
Vt. Stat. Tit. 32 § 9603 outlines some transfers that are exempt from the transfer tax. Examples include the following:
- Transfers between spouses or direct family
- Transfers to government agencies
- Transfers made only to correct a title defect
- Transfers that change the type of ownership without changing the actual owner
- Transfers made between a subsidiary and its parent corporation
- Transfers made to or by a local development corporation
- Transfers made to a 501(c)(3) nonprofit organization
- Transfers made in lieu of a foreclosure
Tax Rates
The property transfer tax rate is 1.25% of the property’s value or $1.00, whichever is greater. Some exceptions exist. For example, when the grantee plans to use the transferred property as their principal residence, the tax rate is 0.50% for the first $100,000 of the property’s value. Any portion over $100,000 is subject to a tax rate of 1.25% (Vt. Stat. Tit. 32 § 9602).
Furthermore, the state will not impose any tax on the first $110,000 in value of any property transferred if the grantee purchases the property as a principal residence with assistance from the Vermont Housing and Financing Agency (VHFA), Vermont Housing and Conservation Trust Fund (HCTF), or US Department of Agriculture (USDA). Any portion over $110,000 will be subject to a tax rate of 1.25%.
2. US Gift Tax (Form 709)
There is no state gift tax in Vermont, but the grantor must pay federal gift tax in some scenarios when they give property to a grantee for little or no payment. They can use IRS Form 709 to determine the exact amount.
Annual exclusions will apply. For example, in 2024, a grantor can give up to $18,000 of property to each recipient without having to pay gift tax.
3. Capital Gains Tax
Vermonters transferring property through a quitclaim deed may owe both 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, ranging from 3.35% to 8.75%. Some long-term gains may be exempt from capital gains tax. The Vermont Department of Taxes details capital gains exclusions.
Vermont Quitclaim Deed Requirements
A quitclaim deed in Vermont must meet specific legal and formatting rules. Getting every detail right helps you complete your property transfer quickly and without confusion.
Legal Framework
Vt. Stat. Tit. 27, Ch. 5 dictates the legal requirements behind property ownership and transfers in the state.
Legal Description
While Vermont doesn’t specify the exact language or details needed for a legal description of the property being transferred, it generally includes the address, a land survey, and references to lot numbers and monuments. Check the previous deed and copy its legal description exactly to ensure a smooth process when filing your quitclaim deed.
Signing
Per Vt. Stat. Tit. 27 § 301, the state requires a notary public to acknowledge the grantor’s signature on a quitclaim deed.
Terminology
Unlike more stringent states, Vermont doesn’t have many requirements for the specific language a quitclaim deed must have to be valid. An enforceable deed will likely have language that “remises, releases, and quitclaims” the property to the grantee. The deed should also clarify that the grantor is not making any warranties.
Additional Documents
A transfer tax document, Form PTT-172, must accompany your quitclaim deed for the town clerk’s office to accept it. Please ensure to fill out all fields and note if the conditionally required fields apply to your situation.
Filing
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.
Validity and Content Requirements
Vt. Stat. Tit. 27 § 341 cites some requirements for a property deed to be valid. Here are the requirements for your quitclaim deed to be enforceable:
- The grantor’s name and address.
- The grantee’s name and address.
- The consideration amount.
- The property’s address and legal description.
- Details of the property’s ownership (especially if multiple parties will own the property).
- The grantor’s signature.
- A notary’s acknowledgment of the grantor’s signature.
Quitclaim Deeds vs. Other Property Transfer Methods in Vermont
| Quitclaim Deed | Only passes the title that the grantor has at the time of the transfer but doesn't make any guarantees about its quality. |
| Warranty Deed | Guarantees that the grantor has possession of the property and title to the property. Also promises that the property doesn't have undisclosed encumbrances and that the grantor will defend against third-party claims. |
| Limited (Special) Warranty Deed | Similar to a warranty deed but states that the grantor will take no responsibility for the title's state before they acquired it. |
| Easement Deed | Provides the right to use a property for a specific purpose. |
| Deed to a Trust | Lets the current trustee convey property that's currently in a trust. |
| Life Estate Deed | Divides the claim to ownership into two parts: (1) the "life estate," which the current property owner retains and (2) the "remainder interest" that the beneficiary receives after the owner's passing. |
| Lady Bird Deed (Enhanced Life Estate Deed) | Similar to a life estate deed but the owner maintains full control. The beneficiary doesn't receive control until the owner passes away. |
Sample Vermont Quitclaim Deed
View a free example of a Vermont quitclaim deed. Use our document editor to complete the form and download it easily in PDF or Word format.
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.
