What is a Quitclaim Deed in Montana?
In Montana, a quitclaim deed is used to transfer property from an owner (“Grantor”) to a new owner (“Grantee”), without any promises or guarantees about the property’s title. Quitclaim deeds are a quick way to transfer property but they offer the lowest security among real estate deeds in Montana.
The most common use of quitclaim deeds is between parties with high levels of trust, such as family members or close friends.
What is the Difference Between a Quitclaim Deed and a Warranty Deed in Montana?
The main difference between quitclaim deeds and warranty deeds in Montana is that a quitclaim deed provides less security to the Grantee.
A warranty deed provides legal protection to the new owner because it confirms that the Grantor owns the property and has the right to make a transfer.
Warranty deeds are mostly used for real estate transactions in Montana. Quitclaim deeds, on the other hand, are used for transfers between family and friends.
How Do Quitclaim Deeds Work in Montana?
Laws surrounding quitclaim deeds are found under Title 70 of the Montana Code, titled Property.
Quitclaim deeds in Montana must state that the Grantor intends to “Remise, release and forever quitclaim ” the property to the Grantee. The term “grant” is not used in a Montana quitclaim deed as it implies warranty.
Once prepared, the quitclaim deed must be filed at the Clerk and Recorder’s Office in the county where the property is located.
Can You Prepare Your Own Quitclaim Deed in Montana?
You can prepare your own quitclaim deed in Montana. A professional drafter is not legally required.
Montana Quitclaim Deed Requirements
Formatting standards in Montana have been standardized through both statute and county processes, which have been uniformly adopted and standardized throughout the state.
Formatting Requirements
Formatting requirements for quitclaim deeds in Montana include:
- Paper size: must be between 8.5×11 (letter) or 8.5x 14 (legal).
- Paper color: must be white.
- Font size: minimum 10-point.
- Text color: black or blue only.
- Text: color must be dark and clearly reproducible.
- Text should be printed or typed only.
- Margins:
- Top margin: First page minimum 3 inches; remaining pages 1 inch.
- Bottom margin: minimum 1 inch on all pages.
- Side margins: minimum o.5 inches on all pages.
- Except for page number, no markings on margins.
Content Requirements
Remaining content requirements for quitclaim deeds in Montana include:
- The Grantor’s name and address.
- The Grantee’s name and address.
- Return name and address must be on the top left of the first page.
- The title “Quitclaim.”
- The property address.
- Property’s homestead status.
- Property’s legal description.
The guidelines for drafting a legal description are as follows:- The property description must contain the proper descriptors, including metes and bounds such as section, township, and range, subdivision, each different tract, unit, or block.
- Mention visible boundaries, or landmarks over measurements like lines or angles whenever possible; lines and angles are preferred over surface measurements.
- Granting clause – a statement describing the transfer the parties have agreed to.
- Consideration clause – the value or the amount of money exchanged.
Who Signs a Quitclaim Deed in Montana?
For a quitclaim deed to be legally valid in Montana, it must be signed by the Grantor. The Grantor’s signature must be acknowledged by a notary public.
If the Grantor is married and the property is registered as a homestead, both spouses must sign the quitclaim deed. Alternatively, a spousal waiver of homestead rights can be signed and attached.
How to File a Quitclaim Deed in Montana
Here’s how to file a quitclaim deed in Montana:
- Prepare the quitclaim deed with the required information.
- Montana Realty Transfer Certificate.
- All transfers of real estate must be accompanied by a completed Realty Transfer Certificate (Form RTC) which discloses the amount of consideration paid.
- The Certificate is submitted to the county clerk along with the quitclaim deed.
- Some transfers typically filed under quitclaim deeds are exempt from the requirement to file the Certificate, including:
- Instruments confirming, correcting, modifying, or supplementing a previously recorded instrument without added consideration.
- Transfers of decedents’ estates.
- Transfers as gifts.
- Transfers between spouses or between parents and children with only nominal consideration.
- Instruments transferring the property to the same parties.
- Transfers under court decrees.
- Transfers due to mergers, consolidations, or reorganizations of corporations, partnerships, or other business entities.
- Once the quitclaim deed is executed, ensure the Grantor’s signature is acknowledged before a notary public.
- Finally, the quitclaim deed must be filed at the Clerk and Recorder’s Office in the county where the property is located.
How Much Does it Cost to File a Quitclaim Deed in Montana?
In Montana, the minimum charges for filing a quitclaim deed are as follows:
- Fee per page: $8.
- Additional fee per page (non-compliant deeds): $10.
- Fee for filing a map or plat: $25.
What Taxes Are Owed on Quitclaim Deeds in Montana?
In Montana, property transfers, including transfers through quitclaim deeds, are not subject to real estate transfer taxes. However, annual property taxes may still apply.
Moreover, federal taxes such as Gift Tax and Capital Gains Tax may also be applicable.
How Long Does a Quitclaim Deed Take to be Recorded in Montana?
The time it takes to record a quitclaim deed in Montana varies based on the county, however, most offices process the deed within two to four weeks.
What Happens After a Quitclaim Deed is Recorded in Montana?
When a quitclaim deed is submitted to the County Clerk’s and Recorder’s Office, it undergoes an initial check to ensure the accuracy of the necessary information. Once verified, the deed is endorsed, indexed, and scanned to be stored in the state system of records.
After all processing is complete, the Clerk’s Office sends recorded documents back to the party listed in the upper left corner of the document.
How Long Are Quitclaim Deeds Valid For in Montana?
There is no expiration for quitclaim deeds in Montana. However, the statute of limitations to recover property in Montana is 10 years.
Sources
- 1 Henningsen v. Stromberg, 221 P.2d 438 (1950)
-
Keeping in mind the foregoing principles of law and the statutory provisions, we find the deed under consideration from Dorais, Avare and Kirk, and their respective wives, to Butte Copper King Mining Company, in its granting clause, provides: “Remise, release and forever quitclaim unto the party of the second part, and to its successors and assigns forever, all the following described property,
Source Link - 2 Mont. Code § 70-20-304 (1)
-
Implied covenants – free from encumbrance… The use of the word “grant” in any conveyance by which an estate of inheritance or fee simple or possessory title… that prior to the time of the execution of the conveyance the grantor has not conveyed the same estate or any right.. at the time of the execution of the conveyance free from encumbrances done, made, or suffered by the grantor or any person claiming under the grantor…
Source Link - 3 Mont. Code § 70-21-208
-
In What County To Be Recorded.. In what county to be recorded. Instruments entitled to be recorded must be recorded by the county clerk of the county in which the real property affected thereby is situated.
Source Link - 4 Mont. Code § 7-4-2636
-
Standards for recorded documents.. be legibly printed or typed in blue or black ink on white paper that is either 8 1/2 x 11 inches or 8 1/2 x 14 inches in size.. have margins that are clear of all markings in the following dimensions… at least 3 inches at the top of the first page and at least 1 inch at the top of the second and any subsequent pages.. at least 1 inch on the bottom of each page;
Source Link - 5 Content Requirements
-
“..provide the names of the parties to the conveyance on the first or second page of any document with more than one page… provide a description of the property if the document conveys an interest in real property;
Addresses Required To Record Certain Documents.. The county clerk shall not receive for recording any deed, mortgage, or assignment of mortgage unless the post-office address of the grantee, mortgagee, or assignee of the mortgagee, as the case may be, is contained therein. This requirement shall not affect the validity of the record of any instrument which has been or may be recorded.
- 6 Mont. Code § 7-4-2636 (1)(f)
-
..include the name and mailing address of the person to whom the document is to be returned in the upper left-hand corner of the first page between the 1/2-inch side margins of each document submitted and may include legibly printed or typed transactional information..
Source Link - 7 Mont. Code § 70-20-201
-
Rules for construing description. The following are the rules for construing the descriptive part of a conveyance of real property … certain definite and ascertained particulars in the description..permanent and visible or ascertained boundaries or monuments are inconsistent with the measurement, either of lines, angles, or surfaces, the boundaries or monuments are paramount.
Source Link - 8 Mont. Code § 70-21-203
-
Acknowledgment of instruments required… before the instrument can be recorded, its execution must be acknowledged .. Execution of the instrument must be acknowledged, as acknowledgment is defined in 1-5-602: (a) by the person executing it.. Proof of execution as provided for in this subsection must be notarized as provided in Title 1, chapter 5.
Source Link - 9 Mont. Code § 70-32-301
-
How conveyed or encumbered — instrument. The homestead of a married person cannot be conveyed or encumbered unless the instrument by which it is conveyed or encumbered is executed and acknowledged by both husband and wife.
Source Link - 10 Mont. Code § 15-7-305
-
Realty transfer certificate required..The county clerk and recorder shall require the parties to the transaction or their agents or representatives to complete a certificate declaring the consideration paid or to be paid for the real estate transferred.. An instrument or deed evidencing a transfer of real estate may not be accepted for recordation until the certificate has been received by the county clerk and recorder..
Source Link - 11 Mont. Code § 115-7-307
-
Certificate – exceptions… the certificate filed for the following transfers need not disclose the consideration paid or to be paid for the real estate transferred… an instrument that (without added consideration) confirms, corrects, modifies, or supplements a previously recorded instrument.. a transfer of decedents’ estates.. a transfer between husband and wife or parent and child with only nominal actual consideration for the transfer…
Source Link - 12 Fees
-
Fees for recording documents.. the fee for recording a standard document that meets the requirements of 7-4-2636 is $8 for each page or fraction of a page…Except as provided in 7-2-2803(4), the fee for recording a document that does not meet the requirements of 7-4-2636 is the fee specified in subsection (1) plus $10.
Fees of county clerk.. the county clerks shall charge, for the use of their respective counties.. for filing and indexing each writ of attachment, execution, certificate of sale, lien, or other instrument required by law to be filed and indexed.. for filing of subdivision and townsite plats, $25 plus:
- 13 Mont. Code § 70-19-302
-
Statute of limitations for state actions concerning real property. The state will not sue any person for or in respect to any real property or the issues or profits thereof by reason of the right or title of the state to the same unless… (1) such right or title shall have accrued within 10 years before any action or other proceeding for the same is commenced..
Source Link
