Legal Question in Real Estate Law in Montana

Pay back taxes; quitclaim deed house to me?

My Uncle owes 3 yrs back property taxes & offered to sign over his home that he owns outright, if I pay the back taxes before the county proceeds to take it. Can this be done by simply doing a quitclaim deed? I live in Oregon, will this have any effect? He's disabled & will not be able to afford the future taxes, but will continue to live in the home. Should I have him sign a rental contract, even though he'll only pay utilities? I would appreciate any help you can offer. Thank you.


Asked on 5/03/04, 6:34 pm

1 Answer from Attorneys

Robert Horvat Barg Horvat PC

Re: Pay back taxes; quitclaim deed house to me?

You should definitely have your uncle transfer the house to you via the appropriate form of Montana deed and then have the deed recorded, concurrently with your paying off the back taxes. Before you do so, however, you should (i) obtain a preliminary title report to ascertain the exact state of title to the property, (ii)follow up with the tax authorities to find out what, if any, steps they have taken to foreclose their tax lien and what exactly you need to do to pay the taxes in full and remove that lien of record, and (iii) perform the necessary due diligence to ensure that your uncle's home does not contain any environmental or other problems that may come back to haunt you later, such as underground fuel storage tanks or lead paint problems. All of this should be appropriately documented in a legally-enforceable agreement with your uncle, as should his continuing occupancy rights once title has been transferred to you.

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Answered on 5/04/04, 3:47 pm


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