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The Realty Transfer Certificate, commonly known as Form 488, serves as a vital document in the transfer of real property in Montana. This form must be filed by any party involved in a real estate transaction, whether the transfer is formalized through a deed or occurs by other means. It encompasses a range of property types, including land, buildings, and fixtures, ensuring that all aspects of the transfer are properly documented. One crucial aspect of the form is its requirement for the reporting of any potential income taxes that may arise from the transfer, as any gain from the sale is considered Montana source income. The form must be submitted to the County Clerk and Recorder at the time of recording the deed or instrument, or, if the transfer occurs by operation of law, to the local Department of Revenue Office. It includes various sections that capture essential details such as the date of transfer, the identities of the buyer and seller, a description of the property, and the nature of the transfer. Additionally, it addresses any exceptions to providing sales price information, ensuring that all necessary disclosures are made regarding the financial aspects of the transaction. The completion of this form is not only a legal requirement but also a means to maintain accurate ownership records and facilitate the proper assessment of taxes related to real estate transactions.
Common mistakes
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Incorrect Date of Transfer: Entering the wrong date can lead to confusion about when the property officially changed hands. Ensure the date matches the execution date of the deed or instrument.
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Inaccurate Names: Names of the seller and buyer must be entered exactly as they appear on the transferring document. Any discrepancies can cause issues with ownership records.
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Missing Addresses: Not providing complete mailing addresses for both parties can delay processing. Ensure both the current and permanent addresses are included.
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Omitting SSN or FEIN: Failure to include the Social Security Number or Federal Employer Identification Number for individuals or entities can hinder identification and tax compliance.
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Incomplete Property Description: The legal description of the property must be accurate. Omitting details or providing incorrect information can complicate the transfer process.
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Incorrect Type of Transfer: Selecting the wrong type of transfer can lead to legal complications. Carefully check the applicable boxes to reflect the correct transfer method.
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Ignoring Exceptions: If any exceptions apply to the transfer, failing to check the appropriate line in Part 5 can result in unnecessary completion of Section 6.
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Sale Information Errors: Providing incorrect sale price information or failing to include personal property values can lead to misreporting and potential tax issues.
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Missing Signatures: The preparer’s signature is required. Not signing or dating the form can render it invalid, delaying the transfer process.
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Dos and Don'ts
When filling out Form 488, it is important to follow specific guidelines to ensure accuracy and compliance. Here are six things you should and shouldn't do:
- Do enter the date of transfer accurately. This should reflect the date the deed was signed or executed.
- Don't use abbreviations or nicknames for names of the seller and buyer. Enter names exactly as they appear on the transferring document.
- Do provide complete mailing addresses for both the seller and buyer. This includes current and permanent addresses.
- Don't leave any sections blank. If a section does not apply, indicate that it is not applicable instead of skipping it.
- Do attach any necessary supporting documents if the transfer is by operation of law, such as a death certificate or court decree.
- Don't forget to sign and date the form. The preparer's signature is required to validate the information provided.
Similar forms
The Form 488, known as the Realty Transfer Certificate, is similar to the Quit Claim Deed. A Quit Claim Deed is a legal instrument that transfers a person’s interest in a property to another person. Unlike a warranty deed, it does not guarantee that the grantor has any ownership interest to convey. Both documents are essential in real estate transactions, but the Quit Claim Deed specifically focuses on transferring ownership without warranties, while the Realty Transfer Certificate includes tax implications and is filed for recordation with the county clerk.
Another document that shares similarities with Form 488 is the Warranty Deed. This type of deed provides a guarantee from the seller to the buyer that the property is free from any claims or liens. Like the Realty Transfer Certificate, a Warranty Deed is used in real estate transactions to formalize the transfer of property ownership. However, the Warranty Deed offers more protection to the buyer, as it assures them of clear title, whereas the Realty Transfer Certificate primarily serves tax purposes and ownership record updates.
In order to formalize your vehicle transaction, it is important to utilize a professional Vehicle Purchase Agreement template that can provide you with all necessary details. You can find a suitable one here: customizable Vehicle Purchase Agreement form template.
The Affidavit of Title is another document akin to the Realty Transfer Certificate. This affidavit is a sworn statement by the seller affirming their ownership of the property and the absence of liens or encumbrances. While both documents are used to clarify property ownership, the Affidavit of Title is often used in conjunction with other closing documents to provide additional assurance to the buyer, whereas the Realty Transfer Certificate focuses on tax obligations and record-keeping.
The Deed of Trust is also similar to the Realty Transfer Certificate. This document secures a loan by transferring the title of the property to a trustee until the borrower repays the loan. Both documents involve the transfer of property rights, but the Deed of Trust is primarily a financial instrument, while the Realty Transfer Certificate is concerned with tax reporting and ownership verification.
The Bill of Sale, while primarily used for personal property, shares a functional similarity with the Realty Transfer Certificate in that both documents serve to formalize a transfer. A Bill of Sale is used to transfer ownership of tangible personal property, while the Realty Transfer Certificate is specifically for real property. Both documents may include details about the parties involved and the items or property being transferred.
The Assignment of Lease is another document that parallels the Realty Transfer Certificate. This document transfers a tenant’s rights and obligations under a lease to another party. While the Realty Transfer Certificate deals with real estate ownership transfers and tax implications, the Assignment of Lease focuses on the rental rights associated with a property. Both documents require proper filing and notification to relevant parties to ensure legal compliance.
The Property Transfer Disclosure Statement is similar in that it provides essential information about the property being transferred. This document requires the seller to disclose known issues or defects with the property to the buyer. While the Realty Transfer Certificate is primarily focused on tax reporting and ownership records, both documents aim to protect the interests of the parties involved in a real estate transaction.
The Easement Agreement also shares some characteristics with the Realty Transfer Certificate. An Easement Agreement grants one party the right to use another party's property for a specific purpose. While the Realty Transfer Certificate is used to update ownership records and tax information, both documents involve the transfer of rights related to real estate. They both require clear documentation to avoid future disputes.
Lastly, the Certificate of Compliance is similar in that it verifies that a property meets specific legal standards or regulations. This certificate is often required before a property can be sold or transferred. Like the Realty Transfer Certificate, it serves to ensure that all necessary legal and tax obligations are met, providing peace of mind to both the buyer and seller in the transaction.
Instructions on How to Fill Out 488
Filling out the 488 form is an important step when transferring real property. Once completed, this form needs to be filed with the County Clerk & Recorder or the local Department of Revenue Office, depending on the nature of the transfer. Follow the steps below to ensure you fill out the form correctly.
- Part 1 - Date of Transfer: Enter the date when the deed or instrument was signed.
- Part 2 - Parties: Fill in the names of the seller (grantor) and buyer (grantee) as they appear on the deed. Include their mailing addresses, Social Security Numbers (SSN) or Federal Employer Identification Numbers (FEIN), and daytime phone numbers.
- Part 3 - Property Description: Provide the legal description of the property being transferred. You may attach additional documentation if necessary.
- Part 4 - Type of Transfer: Check the appropriate boxes to indicate whether the transfer is by recorded instrument or by operation of law. Attach any required documentation for transfers by operation of law.
- Part 5 - Exception from Providing Sales Price Information: If applicable, check the appropriate box for any exceptions that apply to your transfer.
- Part 6 - Sale Information: If no exceptions apply, complete this section with the total purchase price, financing details, and any personal property included in the sale.
- Part 7 - Water Rights Disclosure: This section must be completed and signed by the seller or their agent regarding any water rights associated with the property.
- Part 8 - Preparer Information: The preparer must sign and date the form, confirming that the information provided is accurate.
Documents used along the form
When completing the Realty Transfer Certificate (Form 488), several additional forms and documents may be necessary to ensure compliance with state regulations. Each of these documents serves a specific purpose in the property transfer process, helping to clarify ownership and legal obligations. Below is a list of commonly used forms that often accompany Form 488.
- Form 608 - Water Right Ownership Update: This form is used to update the ownership records of water rights associated with the property being transferred. It is essential for ensuring that the new owner is recognized as the holder of any existing water rights.
- Hold Harmless Agreement Form: When engaging in high-risk activities, consider utilizing a comprehensive Hold Harmless Agreement template to protect against liabilities and claims that may arise.
- Death Certificate: If the transfer involves the termination of a joint tenancy due to death, a death certificate must be submitted. This document provides proof of the decedent's passing and is necessary for legal proceedings.
- Court Decree: In cases where a property transfer is mandated by a court order, a copy of the court decree is required. This document confirms the legal authority for the transfer and outlines any conditions that must be met.
- Affidavit of Appointment: For transfers involving a personal representative or conservator, this affidavit verifies the individual’s authority to act on behalf of the deceased or incapacitated person. It is crucial for maintaining transparency in the transaction.
- Plan of Reorganization: If the transfer is part of a merger, consolidation, or other business reorganization, a plan detailing the reorganization must be included. This document outlines how the business structure will change and its implications for property ownership.
- Secretary of State Documents: In cases of name changes or business entity changes, documents filed with the Secretary of State must be provided. This ensures that all parties are aware of the current legal names involved in the transaction.
These documents play a vital role in the property transfer process. They help protect the rights of all parties involved and ensure compliance with legal requirements. Understanding each document's purpose can facilitate a smoother transaction, providing peace of mind for both buyers and sellers.
Misconceptions
1. Everyone must file Form 488 for every property transfer. This is incorrect. Only parties transferring real property, regardless of whether it’s evidenced by a deed or instrument, need to file. This includes sellers, buyers, and anyone presenting a deed for recording.
2. Form 488 is only for sales. Many believe this form is exclusive to sales. However, it also applies to gifts, barters, and other types of property transfers. It’s essential to understand the various scenarios where this form is required.
3. You don’t need to report gains on property transfers. In fact, any gain from a property transfer is considered Montana source income. This income should be reported to the Department of Revenue on the appropriate income tax return.
4. Filing Form 488 is optional. Some people think that filing this form is a choice. In reality, Montana law mandates its completion. Failure to file can result in penalties of up to $500.
5. Only individuals need to provide Social Security Numbers. This misconception overlooks that business entities must provide their Federal Employer Identification Numbers (FEIN) as well. Accurate identification is crucial for compliance.
6. The property description can be vague. It’s a common belief that a simple address suffices. However, the form requires a detailed legal description of the property, which can include attachments if necessary.
7. You can skip the water rights disclosure if you’re unsure. Many people think they can avoid this section if they lack clarity. However, the water rights disclosure is mandatory and must be completed accurately, as it protects both parties involved in the transaction.
8. Once filed, Form 488 cannot be amended. This is false. If errors are found after filing, amendments can be made. It’s important to ensure that all information is correct to avoid complications later.
Example - 488 Form
FORM 488(RTC)REVISED 7/06
REALTYTRANSFERCERTIFICATE
CONFIDENTIAL TAX DOCUMENT
WHO MUST FILE: Any party transferring real property regardless of whether the transfer is or is not evidenced by deed or instrument or any party presenting an instrument or deed evidencing a transfer of real estate for recordation. Real estate includes land, growing timber, buildings, structures, fixtures, fences, and improvements affixed to land.
YOU MAY OWE INCOME TAXES: Any gain on this transfer is Montana source income and should be reported to the Department of Revenue on the appropriate income tax return.
WHEN AND WHERE TO FILE:
The completed Realty Transfer Certificate must be filed with the County Clerk & Recorder when the instrument or deed evidencing a transfer of real estate is presented for recording.
If the transfer is by operation of law, then a Realty Transfer Certificate with the required supporting documentation should be filed with the local Department of Revenue Office where the property is located. Please see Part 4 for further detailed information.
The Department of Revenue will change the ownership record when this form is fully and accurately completed and signed.
PART 1 – DATE OF TRANSFER (SALE)
This should be the date on which the instrument or deed was executed (the date the instrument or deed was signed by the Seller (Grantor) and Buyer (Grantee) unless otherwise specified in the deed or date of decedent’s death). Contracts for Deed and Notices of Purchaser’s Interest should use the date the contract or notice was initially signed, not the date the contract was finalized.
PART 2 – PARTIES
Seller (Grantor)/ Buyer (Grantee): Enter the names of the seller (grantor) and buyer (grantee) exactly as they appear on the transferring document. Business organizations, corporations, trusts, etc. should enter their name(s) exactly as it appears on the transferring document.
Addresses: For the seller (grantor) enter the current mailing address. For the buyer (grantee) enter the permanent mailing address. If the tax notice is to be sent to a different mailing address, please complete the additional mailing information.
SSN or FEIN: For individuals, list the social security number of all legal owners named in the transferring document. Business organizations, corporations, trusts, etc. list the federal ID number(s) of the legal entity(ies) named in the transferring document, §
Daytime Phone: Enter phone numbers for both the seller (grantor) and buyer (grantee).
PART 3 – PROPERTY DESCRIPTION
This section identifies the parcel that is being transferred by location and is the legal description found on the instrument or deed conveying the real estate or the abstract to the real estate.
The property description may be provided on an attachment, and be identified by checking the applicable box.
PART 4 – TYPE OF TRANSFER (Please refer to “When and Where to File” above.)
Transfer by Recorded Instrument: Check the box(es) that apply to the type of transfer for which an instrument has been recorded with the County Clerk and Recorder.
Transfer by Operation of Law: Check the box(es) that apply to the type of transfer. A copy of the following applicable documentation must be attached to the Realty Transfer Certificate.
•Termination of Joint Tenancy by Death – death certificate and deed that created the joint tenancy with right of survivorship.
•Court Decree -
•Personal Representative, Special Administrator or Public Administrator – death certificate, order of appointment and letters of administration and an affidavit that their appointment has not been terminated.
•Conservator – Order of Appointment and letter of conservatorship or copy of the order terminating the conservatorship.
•Merger, consolidation or other business reorganization – plan of reorganization.
•Name change only – documents filed with the Secretary of State to accomplish the name change.
PART 5 – EXCEPTION FROM PROVIDING SALES PRICE INFORMATION
If any of the exceptions listed apply to this transfer, please check the appropriate line and do not complete Section 6. If you are unsure whether this transaction should be defined as an exception, or if you have any other questions concerning exception status, please request a determination from your local Department of Revenue Office.
PART 6 – SALE INFORMATION (If there is no exception checked in Part 5, you must complete this section.)
CONFIDENTIALITY: Sale information is confidential and only for official use by the Department of Revenue.
Enter the total purchase price paid for the sale parcel. This should include cash, mortgages, property traded, liabilities assumed, leases, easements and personal property.
Financing: if you paid cash for the entire sale parcel, check the box in front of Cash. If you financed the property by receiving a loan indicate the type by checking the appropriate box; Federal Housing Administration (FHA) Loan, Veterans Administration (VA) Loan or Conventional. If this was a contract for deed or trust indenture, indicate by checking the box in front of Contract. If there was some other type of financing used such as a Montana Board of Housing Loan, trade of property, etc. please indicate by checking the box in front of Other. Also, indicate whether this was a new loan or an assumption of an existing loan.
Personal Property: Enter the dollar amount of any personal property included with the sale of this parcel. Personal property includes furniture and fixtures, business and farm equipment, livestock, recreational vehicles, leases and easements, and mobile homes. Anything that is permanently attached to the real estate should not be included. Negligible personal property included in a residential sale need not be reported.
SID (Special Improvement District – liens levied against the property for amenities like street paving, sewers, water systems, etc.): Please answer the questions by checking the appropriate boxes, also include the amount of the SID paid or assumed.
Value of Inventory: Please provide the value of any business inventory that was included in the sales price.
Value of Licenses: Please provide the value of any licenses included in the sales price i.e. liquor licenses, gambling licenses, etc.
Value of Good Will: Please provide the value of Good Will included in the sale price. (Good Will is defined as “the economic advantage over competitors that a business has acquired by virtue of habitual patronage of customers”.)
PART 7 – WATER RIGHTS DISCLOSURE – This disclosure must be completed and signed by the seller or the seller’s legally appointed agent. Refer to the back of this page (page 2) for further information about the disclosure.
PART 8 – PREPARER INFORMATION
All Realty Transfer Certificates must be signed and dated by the preparer. By his/her signature the preparer indicates the information provided is true and correct to the best of his/her knowledge, that the seller (grantor) and the buyer (grantee) have examined the completed Realty Transfer Certificate and agree the information contained within is correct and accurate.
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WATERRIGHTDISCLOSUREINFORMATION
The Water Right Disclosure is required by Montana Law. Legislators decided it is important for both the buyer and seller of property to know what the water right situation is — whether any water rights exist, and whether they are being transferred with or withheld from the property.
A water right is a legally protected right to beneficially use water in priority that was obtained in accordance with Montana law. Buyers should be careful to investigate whether water being used on a piece of property amounts to a valid water right, or is merely an unauthorized and unprotectable use of water. In Montana all irrigation water rights must have a valid DNRC water right number to be of record. However, existing rights for livestock and individual domestic, as opposed to municipal uses, based on an instream flow or groundwater source before July 1, 1973, do not need a DNRC water right number. If a water right does not have a DNRC number, and does not fall within the above narrow exception, then there is no water right.
Once the water rights appurtenant to a piece of property have been identified, the investigation of water right should not stop there.Although a water right may have a valid DNRC water right number, it may still be subject to final adjudication in Montana’s general stream adjudication. The Montana Water Court is currently adjudicating all Statements of Claim for
If there are water rights which have been historically used on the property being transferred, but are not going to be transferred in the sale of land, the deed must specifically reserve those water rights. Otherwise, if the deed is silent, the water rights automatically pass with the land by operation of law.
The following descriptions may be of some help in determining which box to mark in Part 6, Water
Rights Disclosure. If further assistance is needed, you may want to seek legal advice.
Seller (Grantor) has water rights on record with DNRC and some or all transfer to Buyer means there are water rights on file with the Department of Natural Resources & Conservation that apply to the land being sold. Either some or all of those water rights will transfer to the buyer.An Ownership Update form (Form #608) must be filed to update the ownership of the water right. Use the buff colored form attached to this RTC packet or the form can be found on the Internet at http://www.dnrc.mt.gov/wrd/water_rts/wr_general_info/wrforms/wr_forms.asp.
Seller (Grantor) does not have water rights on record with DNRC means that there are no water rights on file with the Department of Natural Resources & Conservation that apply to the land being sold. If water is used on the land, please contact your local regional office for assistance.
Seller (Grantor) is exempt from this disclosure requirement means the seller is exempt from the Water Right disclosure requirement because the property is served by a public water supply or the deed was in escrow prior to January 1, 1998.
Contact the DNRC for information if water is used on the property other than described above.
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REALTYTRANSFERCERTIFICATE CONFIDENTIALTAXDOCUMENT
The information contained in this certificate is confidential by Montana law. Unauthorized disclosure of this information is a criminal offense.
Form 488 (RTC) Revised 7/06
GEOCODE(S) _______________________________________
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ASSESSMENT CODE(S) _______________________________
PART 1 - DATE OF TRANSFER (SALE) |
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assessmentandtaxationofrealpropertywhenthisformisfullyandaccuratelycompletedand |
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PART 2 - PARTIES |
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Minor SSN_______________________ |
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Mailing Address ____________________________________________________ |
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Mailing Address ____________________________________________________ |
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Transfer to Trustee, Custodian, or |
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Trust FEIN_______________________ |
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PART 3 - PROPERTY DESCRIPTION |
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Legal Description: __________________________________________________________________________________ Attachment
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Add/Sub __________________________________________Block _________________________ Lot _________________________
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PART 4 |
Please complete fully, more than one may apply. |
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Transfer by Recorded Instrument |
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Sale |
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Barter |
Part of 1031 or 1033 exchange |
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PART 5 - EXCEPTIONS FROM PROVIDING SALES PRICE INFORMATION |
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Transfer in contemplation of death without consideration |
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Transfer between husband/wife or parent/child for nominal Foreclosure (include trustee transfer under trust indenture and
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Land eligible for Agricultural Classification |
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instrument, no additional consideration |
Transfer to a revocable living trust |
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Termination of joint tenancy by death |
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PART 6 - SALE INFORMATION |
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Actual Sale Price: $ ________________ |
Was an SID payoff included in the sale price? |
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Financing: Cash FHA VA |
Contract Other |
Did the buyer assume a SID? |
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Terms: New loan OR Assumption of existing loan |
Amount of SID paid or assumed: $ ______________ |
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Value of personal property included in sale $ ______________ |
Was a mobile home included in the sale? |
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Value of inventory included in sale $ _______Value of license(s) included in sale $ _______Value of Good Will included in sale $ ______
PART 7 - WATER RIGHT DISCLOSURE (See page 2 for important information about this section)
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PART 8 - PREPARER INFORMATION |
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Daytime Phone __________________________________ |
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Clerk and Recorder Use Only
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Warranty |
Trust Deed |
Recording Information: |
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Interest |
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Notice of Purchaser's Interest |
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Statement of Acknowledgment |
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Termination of Joint Tenancy |
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Decree |
Tax Deed |
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Department of Revenue Copy |
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REALTYTRANSFERCERTIFICATE CONFIDENTIALTAXDOCUMENT
The information contained in this certificate is confidential by Montana law. Unauthorized disclosure of this information is a criminal offense.
Form 488 (RTC) Revised 7/06
GEOCODE(S) _______________________________________
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ASSESSMENT CODE(S) _______________________________
PART 1 - DATE OF TRANSFER (SALE) |
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TheDepartmentofRevenuewillchangethenameonownershiprecordsusedforthe |
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Assessment Code Or Parcel # |
Main Geocode: |
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assessmentandtaxationofrealpropertywhenthisformisfullyandaccuratelycompletedand |
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_____________________ (MM/DD/YYYY) |
signed.(Pleasereadtheattachedinstructionsforassistanceincompletingandfilingthisform.) |
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Montanalawrequiresthisformbecompletedandmayimposeuptoa$500penaltyfor |
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PART 2 - PARTIES |
Please complete this section in full, if additional space is required, please attach a separate page. |
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SELLER (Grantor) |
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SSN or FEIN |
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City_________________________ST ______ Zip ___________ |
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Mailing Address ____________________________________________________ |
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Mailing Address ____________________________________________________ |
other Representative: |
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for Tax Notice |
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Trust FEIN_______________________ |
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PART 3 - PROPERTY DESCRIPTION |
Please complete fully, if additional space is required, please attach a separate page. |
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Legal Description: __________________________________________________________________________________ Attachment
________________________________________________________________________________________________
Add/Sub __________________________________________Block _________________________ Lot _________________________
County |
____________________________ City/Town ___________________ Section _______ Township _______ Range ________ |
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PART 4 |
Please complete fully, more than one may apply. |
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Transfer by Recorded Instrument |
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Sale |
Gift |
Barter |
Part of 1031 or 1033 exchange |
Transfer is subject to a reserved life estate |
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Transfer by Operation of Law |
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Termination of joint tenancy by |
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Termination of life estate by |
Court decree |
Merger, consolidation, or other |
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death |
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death |
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business entity reorganization |
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PART 5 - EXCEPTIONS FROM PROVIDING SALES PRICE INFORMATION |
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Please complete fully, more than one may apply. |
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Gift |
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Transfer pursuant to court decree |
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Transfer in contemplation of death without consideration |
Tax deed or sheriff’s deed |
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Transfer between husband/wife or parent/child for nominal Foreclosure (include trustee transfer under trust indenture and
consideration |
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deed in lieu of foreclosure) |
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Transfer of property of the estate of a decedent |
Merger, consolidation or reorganization of business entity |
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Transfer to governmental agency |
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Sale of producing Timber land |
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Correction, modification, or supplement of previously recorded |
Land eligible for Agricultural Classification |
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instrument, no additional consideration |
Transfer to a revocable living trust |
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Termination of joint tenancy by death |
Purchaser and seller are identical parties |
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Termination of life estate by death |
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Other (specify type)________________ |
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PART 6 - SALE INFORMATION |
Please complete fully, more than one may apply. |
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Actual Sale Price: $ ________________ |
Was an SID payoff included in the sale price? |
Yes |
No |
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Financing: Cash FHA VA |
Contract Other |
Did the buyer assume a SID? |
Yes |
No |
Terms: New loan OR Assumption of existing loan |
Amount of SID paid or assumed: $ ______________ |
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Value of personal property included in sale $ ______________ |
Was a mobile home included in the sale? |
Yes |
No |
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Value of inventory included in sale $ _______Value of license(s) included in sale $ _______Value of Good Will included in sale $ ______
PART 7 - WATER RIGHT DISCLOSURE (See page 2 for important information about this section)
Seller (Grantor) has water rights on record |
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Seller (Grantor) does not have water rights Seller (Grantor) is exempt from this |
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with DNRC and some or all transfer to Buyer |
on record with DNRC |
disclosure requirement |
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Seller (Grantor) signature_________________________________________ |
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PART 8 - PREPARER INFORMATION |
Preparer's signature is required |
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Name/Title |
_____________________________________ (please print) |
Company Name _________________________________ |
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Mailing Address |
_______________________________________________ |
Signature_______________________________________ |
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City _____________________ ST ______ Zip ____________ |
Daytime Phone __________________________________ |
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Clerk and Recorder Use Only
Type of Instrument: |
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Warranty |
Trust Deed |
Recording Information: |
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Quit Claim |
Interest |
Document # _______________________________________ |
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Grant |
Notice of Purchaser's Interest |
Book _____________________Page___________________ |
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Contract For Deed |
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Statement of Acknowledgment |
Date _____________________________________________ |
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Bargain & Sale Deed |
Termination of Joint Tenancy |
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Decree |
Tax Deed |
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_______________________ |
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Buyer/Seller Copy |
Page 4 |
Form 608 Revised 7/06
DNRCWATERRIGHT OWNERSHIPUPDATE
File in WR #:_______________________________________
GEOCODE(S) _______________________________________
_______________________________________
_______________________________________
_______________________________________
ASSESSMENT CODE(S) _______________________________
PART 1 - DATE OF TRANSFER (SALE) |
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Assessment Code Or Parcel # |
Main Geocode: |
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SEEIMPORTANTINFORMATION |
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ON THE BACK OF THIS FORM |
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PART 2 - PARTIES |
Please complete this section in full, if additional space is required, please attach a separate page. |
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SELLER (Grantor) |
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SSN or FEIN |
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(if different) |
City_________________________ST ______ Zip ___________ |
Minor SSN_______________________ |
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Name |
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_______________________________ |
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Mailing Address ____________________________________________________ |
_______________________________ |
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(Permanent) |
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Daytime Phone ___________________ |
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City _________________________ST ______ Zip ___________ |
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BUYER (Grantee) |
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SSN or FEIN |
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Name |
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_______________________________ |
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Mailing Address ____________________________________________________ |
_______________________________ |
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(Permanent) |
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____________________________________________________ |
Daytime Phone ___________________ |
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City_________________________ST ______ Zip ___________ |
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Transfer to Trustee, Custodian, or |
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Mailing Address ____________________________________________________ |
other Representative: |
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for Tax Notice |
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____________________________________________________ |
Trust FEIN_______________________ |
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PART 3 - PROPERTY DESCRIPTION |
Please complete fully, if additional space is required, please attach a separate page. |
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Legal Description: __________________________________________________________________________________ Attachment
________________________________________________________________________________________________
Add/Sub __________________________________________Block _________________________ Lot _________________________
County |
____________________________ City/Town ___________________ Section _______ Township _______ Range ________ |
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PART 4 |
Please compl te fully, more than one may apply. |
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Ownership Update Filing Fee: $50.00 for 1 water right and $10.00 for each additional right up to a maximum of $300.00. |
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Transfer by Recorded Instrument |
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Sale |
Gift |
Barter |
Part of 1031 or 1033 exchange |
Transfer is subject to a reserved life estate |
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A. WATER RIGHT(S) TO UPDATE |
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Transfer by Operation of Law |
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List all water rights which need to have ownership updated. Attach a list if additional space is needed. Attachment |
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Termination of joint tenancy by |
Termination of life estate by |
Court decree |
Merger, consolidation, or other |
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death Statement of Claim No. |
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death |
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business entity reorganization |
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PART |
SALES PRICE INFORMATION |
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Please complete fully, more than one may apply. |
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Gift Provisional Permit No. |
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Transfer pursuant to court decree |
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Transfer in contemplation of death without consideration Tax deed or sheriff’s deed
Exempt Right No. __________________________________________________________________________
Transfer between husband/wife or parent/child for nominal Foreclosure (include trustee transfer under trust indenture and
Powder River Declaration No. _________________________________________________________________
considerationdeed in lieu of foreclosure)
Transfer Otherof property of the estate of a decedent |
Merger, consolidation or reorganization of business entity |
Transfer to governmental agency |
Sale of producing Timber land |
Correction, modification, or supplement of previously recorded |
Land eligible for Agricultural Classification |
B.SELLER (person relinquishing the water right): If all seller’s signatures are not available, attach a copy of the recorded
Transfer to a revocable living trust
instrument showing conveyance of the property from the seller to the buyer. If the seller listed is not the person
Termination of joint tenancy by death Purchaser and seller are identical partiesinstrument, no additional consideration
identified as the water right owner in the DNRC records, attach copies of the recorded documents showing
Termination of life estate by death Other (specify type)________________
chain of title including the legal description. |
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PART 6 - SALE INFORMATION |
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Please complete fully, more than one may apply. |
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Yes |
No |
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Did the buyer receive 100% of the seller’s interest in the water rights shown above? If no, |
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Actual Sale Price: $ ________________ |
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Was an SID payoff included in the sale price? |
Yes |
No |
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Financing: Cash |
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attach a map showing buyer’s property. |
Yes |
No |
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FHA VA |
Contract |
Other |
Did the buyer assume a SID? |
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Yes |
No |
NA |
If the sale |
on a contract for deed, does the seller want to remain listed as an owner of the |
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Terms: |
New loan |
OR |
Assumption of existi |
g loan |
Amount of SID paid or assumed: $ ______________ |
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water right? |
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Was a mobile home included in the sale? |
Yes |
No |
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Value of personal property included in sale $ |
______________ |
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Value of inventory included in sale $ |
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Value of license(s) included in sale $ _ ___Value of Good Will included in sale $ _____ |
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Seller Signature: |
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Date: |
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PART 7 - WATER RIGHT DISCLOSURE (See page 2 for important information about this section)
Seller Signature: _____________________________________________Date:___________________________
Seller (Grantor) has water rights on record |
Seller (Grantor) does not have water rights |
with DNRC and some or all transfer to Buyer |
on record with DNRC |
C.FOR QUESTIONS or CLARIFICATION, WHO SHOULD THE DNRC CONTACT? Seller (Grantor) signature_________________________________________
Seller (Grantor) is exempt from this disclosure requirement
Name _____________________________ Address_______________________________ Phone #_____________
PART 8 - PREPARER INFORMATION Preparer's signature is required
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FOR DEPARTMENT USE ONLY |
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Company Name |
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Date Rec’d |
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Name/Title |
_____________________________________ (please print) |
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_________________________________ |
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Mailing Address |
_______________________________________________ |
Signature |
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_______________________________________ |
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Fee Rec’d |
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Check No. |
TLMS Receipt Nbr. |
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City _____________________ ST ______ Zip ____________ |
Daytime Phone |
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__________________________________ |
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Clerk and Recorder Use Only |
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Payor |
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Type of Instrument: |
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Warranty |
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Trust Deed |
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Recording Information: |
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Rec'd By |
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Refund |
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Date |
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Quit Claim |
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Interest |
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Document # |
_______________________________________ |
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Grant |
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Notice of Purchaser's Interest |
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Coder |
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RO# |
OUID# Book _____________________Page___________________ |
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Contract For Deed |
Statement of Acknowledgment |
Date |
_____________________________________________ |
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Bargain & Sale Deed |
Termination of Joint Tenancy |
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For Complete Information. See File |
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Decree |
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Tax Deed |
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COMPLETE AND SEND THIS FORM TO YOUR LOCAL WATER RESOURCES REGIONAL OFFICE
_______________________
See back for regional office addresses
Page 5
DEPARTMENT OF NATURAL RESOURCESAND CONSERVATION
AND MONTANAWATER COURT
IMPORTANTINFORMATION
Montana law requires this form be filed by the seller within 60 days after recording a change in ownership of real property which has water rights on record with the DNRC.
Do not file this form if your only use of water is from an irrigation district, municipal system, water users association, or other public water supply.
Water rights in Montana, including all irrigation water rights, must have a valid DNRC water right number to be of record. However, existing rights for livestock and individual domestic as opposed to municipal uses based on an in stream flow or groundwater source appropriated before July 1, 1973, do not need a DNRC water right number. If the water use does not have a DNRC water right number and does not fall within the above narrow exception, then you do not have a water right. Contact the DNRC for information on how to acquire a water right.
Described below is further explanation of exempt rights or water rights which are valid without a DNRC water right number.A DNRC water right number is not required for the following if the use began:
prior to January 1, 1962: groundwater used for individual domestic use, as opposed to municipal use;
prior to January 1, 1962: groundwater used for stock;
between January 1, 1962 through June 30, 1973: groundwater used for stock or domestic purpose anda GW1, GW2, or GW3 form is properly filed in the courthouse; or
prior to July 1, 1973: instream surface water used for stock or domestic purposes.
If a water right does not have a DNRC number, and does not fall within the above exceptions, then there is no water right.
IFYOU HAVEQUESTIONSCALLYOUR LOCALWATERRESOURCESREGIONALOFFICE.
BILLINGS |
HELENA |
Airport Business Park |
1424 NinthAve |
1371 Rimtop Drive |
PO Box 201601 |
Billings, MT |
Helena, MT |
Phone: |
Phone: |
Big Horn, Carbon, Carter, Custer, Fallon, Powder River, |
Beaverhead, Broadwater, Deer Lodge, Jefferson, Lewis and |
Prairie, Rosebud, Stillwater, Sweet Grass, Treasure, and |
Clark, Powell, and Silver Bow Counties |
Yellowstone Counties |
KALISPELL |
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BOZEMAN |
109 Cooperative Way, Suite 110 |
2273 Boot Hill Court, Suite 110 |
Kalispell, MT |
Bozeman, MT 59715 |
Phone: |
Phone: |
Flathead, Lake, Lincoln, and Sanders Counties |
Gallatin, Madison, and Park Counties |
LEWISTOWN |
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GLASGOW
222 Sixth Street South PO Box 1269 Glasgow, MT 59230 Phone:
Daniels, Dawson, Garfield, McCone, Phillips, Richland, Roosevelt, Sheridan, Valley, and Wibaux Counties
HAVRE
210 SixthAve Havre, MT
Blaine, Chouteau, Glacier, Hill, Liberty, Pondera, Teton, and Toole Counties
613 NE Main, Suite E Lewistown, MT
Cascade, Fergus, Golden Valley, Judith Basin, Meagher, Musselshell, Petroleum, and Wheatland Counties
MISSOULA
1610 S. Third St. W., Suite 103 PO Box 5004
Missoula, MT
Phone:
Granite, Mineral, Missoula, and Ravalli Counties
The Montana Water Court is currently adjudicating all Statements of Claim. For the current status of the claim(s) specified on the ownership update or if you have questions for the Water Court, call
http://dnrc.mt.gov/wrd/default.asp
FILING FEE: $50.00 for one water right and $10.00 for each additional right up to a maximum of $300.00.
Page 6
Understanding 488
What is Form 488?
Form 488, also known as the Realty Transfer Certificate, is a document required in Montana for any party transferring real property. This includes any transfer that is or is not evidenced by a deed or instrument. It is essential for recording ownership changes with the County Clerk & Recorder.
Who is required to file Form 488?
Any party involved in the transfer of real property must file Form 488. This includes sellers (grantors) and buyers (grantees), as well as any party presenting a deed or instrument for recording. Real estate encompasses land, buildings, structures, and other improvements affixed to the land.
When and where should Form 488 be filed?
The completed Realty Transfer Certificate must be filed with the County Clerk & Recorder at the time the deed or instrument is presented for recording. If the transfer occurs by operation of law, the form should be submitted to the local Department of Revenue Office where the property is located.
What information is required on Form 488?
Form 488 requires several pieces of information:
- Date of Transfer: The date the deed or instrument was executed.
- Parties: Names and addresses of the seller and buyer, including their Social Security Numbers or Federal Employer Identification Numbers.
- Property Description: A legal description of the property being transferred.
- Type of Transfer: Indicate whether the transfer is by recorded instrument or operation of law.
- Sale Information: Include the sale price and any financing details.
What are the exceptions for providing sales price information?
There are specific circumstances under which the sales price does not need to be reported. These include:
- Gift transfers
- Transfers between family members for nominal consideration
- Transfers of property from an estate
- Transfers to governmental agencies
If you believe your transaction qualifies for an exception, consult your local Department of Revenue Office for clarification.
What is the confidentiality of the information on Form 488?
The information provided in Form 488 is confidential under Montana law. Unauthorized disclosure of this information is considered a criminal offense. Only the Department of Revenue may access this information for official use.
What should I do if there are water rights associated with the property?
If there are water rights associated with the property, the seller must complete the Water Rights Disclosure section of the form. This section confirms whether water rights are being transferred or if they are being withheld. Buyers should ensure they understand the water rights situation before finalizing the transaction.
What happens if Form 488 is not filed?
Failure to file Form 488 may result in penalties, including a fine of up to $500. It is crucial to complete and submit this form accurately to avoid any legal issues related to the transfer of property.