Montana Quitclaim Deed vs. Warranty Deed: Which One You'll Use and When

If you're buying a home in Montana, you'll receive a warranty deed at closing. If you're transferring a property to your spouse, adding someone to title, or moving property into a trust, you'll use a quitclaim deed. The two instruments serve fundamentally different purposes — and confusing them creates real problems.

Here's exactly what each deed does, when each is used in Montana, and what the Realty Transfer Certificate requirement means for any transaction.

Warranty Deed: The Standard for Home Purchases

A warranty deed is the default instrument for arm's-length real estate purchases in Montana. When a seller transfers property to a buyer using a warranty deed, the seller is making a set of legally enforceable promises about the title:

The covenant of seisin — the seller actually owns the property and has the right to sell it.

The covenant against encumbrances — the title is free of undisclosed liens, easements, or other encumbrances. If a mechanic's lien surfaces later that the seller failed to disclose, the seller is liable.

The covenant of quiet enjoyment — no third party will appear with a superior claim to the property that disrupts the buyer's possession.

The covenant of warranty — if the title turns out to be defective in some way the seller warranted against, the seller must defend the buyer's title and compensate for any losses.

These warranties run with the chain of title historically — a general warranty deed covers the entire history of the property, not just the seller's period of ownership. This is why you pair a warranty deed with title insurance: title insurance covers claims that slip through despite the seller's warranty, including problems that may be impossible for either party to discover before closing (forgery in prior deeds, undisclosed heirs, recording errors).

In Montana's title-and-escrow model, you don't need an attorney to close — a title company handles the transaction and issues the title insurance policy. The warranty deed is prepared by the escrow officer, signed by the seller at closing, notarized, and recorded in the county where the property is located.

Quitclaim Deed: No Warranties Attached

A quitclaim deed transfers whatever interest the grantor holds — nothing more, nothing less. There are no promises about whether that interest is good, whether the title is clear, or whether a third party might assert a competing claim. The grantor simply says: "Whatever I have, I'm giving to you."

This makes quitclaim deeds entirely inappropriate for standard purchases. No buyer paying market value for a home should accept a quitclaim deed. There's no remedy against the grantor if title problems emerge later.

Where quitclaim deeds make sense in Montana:

Adding or removing a spouse from title. When you marry and want to add your spouse to the deed, or when a divorce settlement requires removing a former spouse from title, a quitclaim deed is the standard instrument. Both parties understand the circumstances; the warranties don't add value.

Transferring property into a trust. When an owner transfers their home into a living trust for estate planning purposes, a quitclaim deed is typically used because the transfer is to an entity the owner controls. The warranties are unnecessary since the owner is essentially transferring to themselves.

Family transfers. Parent to child, sibling to sibling, or other intra-family transfers where both parties know the property's history and the warranties would be meaningless.

Corrective deeds. If a prior deed had a name misspelled, an incorrect legal description, or another defect, a corrective quitclaim deed can fix the record.

After foreclosure or tax sale. Government entities and lenders who acquire property through foreclosure or tax sale commonly convey through quitclaim or sheriff's deed because they make no representation about title quality.

One practical note for Montana: because the state is a non-disclosure state for sale prices, the purchase price is not required to appear on the deed or become part of the public record. The price reported on the Realty Transfer Certificate (see below) goes to the Department of Revenue for assessment purposes and is not publicly searchable the way it would be in a disclosure state.

The Realty Transfer Certificate Requirement

Any transfer of real property in Montana — whether by warranty deed, quitclaim deed, or any other instrument — must be accompanied by a Realty Transfer Certificate (RTC) filed with the Montana Department of Revenue.

The RTC captures basic information about the transaction: the names of grantor and grantee, the property's legal description and location, the type of transfer, and the consideration paid (the price). It's filed with the county clerk and recorder at the same time the deed is recorded.

Key points about the RTC:

It applies to quitclaim deeds too. Even a no-consideration family transfer where a parent quitclaims property to a child for $1 requires an RTC. The DOR uses this information to track ownership changes and maintain assessment rolls.

Exemptions exist. Certain transfers are exempt from RTC requirements — transfers in lieu of foreclosure, some trust transfers, and specific government conveyances. The full list is in MCA § 15-7-305. An escrow officer or real estate attorney can confirm whether a specific transfer qualifies for exemption.

It affects assessed value. When the DOR processes an RTC showing a sale at market price, it flags the property for reassessment. This is how the county learns that your $700,000 Bozeman purchase occurred, which may trigger a reassessment before the next cycle if the prior assessed value was significantly lower.

The recording process. In Montana, recording fees are $20 for the first page and $10 for each additional page. For a standard single-page deed plus RTC, expect to pay $30–$50 in recording fees at closing.

What to Expect at Your Closing

At a standard Montana home purchase closing through a title company:

• You'll review and sign the closing documents — the deed isn't typically signed by the buyer (the buyer is the grantee, not the grantor)
• The seller will sign the warranty deed and the RTC in front of a notary
• The escrow officer submits the deed and RTC for recording at the county clerk and recorder's office
• Once recorded, you receive a copy of the recorded deed — the original goes into the county records

For a quitclaim deed outside of a purchase transaction, the process is simpler: the grantor signs a prepared quitclaim deed in front of a notary, and the deed is recorded. An attorney or title company can prepare the deed for a modest fee — trying to prepare one yourself without professional help risks errors in the legal description that create title problems down the road.

The Montana First-Time Home Buyer Guide walks through the full closing process, what each document does, and the questions to ask your escrow officer before signing day.

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