Although there are countless legitimate reasons why property is transferred, there really is only one method to effectively and legally do so in the state of Missouri. This process is commonly referred to as conveyance. Understanding the details of the Missouri transfer taxes that are an integral element of property transfer will ensure that you have the information you need on hand to make the right decision with regards to property transfers.
If you are attempting to transfer real estate property in Missouri, you will need to use either a warranty deed or a quitclaim deed. Understanding how and when each particular document is utilized is absolutely critical for the successful transfer of real estate in this state and many others.
The Basics of Conveyance
If you own your own home, a situation may arise eventually in which you wish to transfer ownership of the property to another individual. For example, many older parents choose to transfer ownership of their home to a child before they pass away in order to ensure that their children avoid the lengthy probate process.
As mentioned previously, this process is commonly known as conveyance. In order for the original homeowner to execute this conveyance successfully, they will need to file one of two possible deed forms. These are commonly referred to as a warranty deed and a quitclaim deed. A warranty deed will be used in situations where the original homeowner is transferring the property to another family member, such as their spouse or virtually any other family beneficiary.
Unlike a warranty deed, a quitclaim deed will be used in situations where an individual is either added or removed from ownership without necessarily requiring the original homeowner to forsake their own stake in the property. The comprehensive nature of each of these deeds means that virtually all conveyance scenarios are covered by one or the other.
Information on Quitclaim and Warranty Deeds For Missouri
No matter which particular deed you choose for your real estate transfer, you will need to ensure that this document is properly notarized in order for it to take effect. In fact, your deed transfer will only be legitimized and enacted if the notary witnesses the signing of the deed by both parties involved in the transaction. In a situation where there are more than one owners or sellers, all relevant individuals must be present for the signing of the document.
Specific Details on Missouri Real Estate Transfer Tax
Missouri is one of a handful of states that does not enforce a real estate transfer tax. Because of this, individuals can transfer ownership of a house or other property without incurring a specialized tax based on the transaction. Once the process of notarizing the deed has been finalized, both parties can now ensure that the deed has been successfully accepted by the state.
The final, signed copy of the deed should be filed with the Registry of Deeds in the specific town where the property is located. It is only after this deed has been filed that the change in ownership that has occurred is considered legally valid. Prior to this point, it is entirely possible that competing claims on the property could have hindered the process by which the new owners were able to move in and begin transferring their personal belongings to the house.
Ryan Cockerham is a nationally recognized author specializing in all things innovation, business and creativity. His work has served the business, nonprofit and political community. Ryan's work has been featured at Zacks Investment Research, SFGate Home Guides, Bloomberg, HuffPost and more.