How to Transfer Property Title in Utah

Transferring property title is one of the most significant legal transactions you'll undertake. Whether you're selling your home, adding a family member to your deed, or handling property matters after a divorce, understanding the process ensures a smooth transition and protects your interests.

Utah's property transfer process is relatively straightforward compared to many states, particularly because Utah imposes no real estate transfer tax. However, the stakes remain high—mistakes in deed preparation or recording can create title defects that may take years and thousands of dollars to resolve.

After facilitating property transfers across Utah for nearly 60 years, Prospect Title has developed this comprehensive guide to help you navigate the title transfer process with confidence, whether you're handling the transfer yourself or working with professionals.

What Are the Basic Steps for Transferring Property Title in Utah?

Every property title transfer in Utah follows a fundamental process, though the details vary based on your specific situation. Here's the basic framework:

1. Determine the appropriate deed type: Different situations call for different deeds—warranty deeds for sales, quitclaim deeds for family transfers, special warranty deeds for estate sales, etc.
2. Obtain the property's legal description: You'll need the exact legal description from the current deed or property tax records
3. Prepare the deed: The deed must include all required elements and proper formatting for recording
4. Execute the deed: The grantor (current owner) signs the deed in the presence of a notary public
5. Record the deed: Submit the executed deed to the county recorder's office with the recording fee
6. Update property tax records: Verify that the county assessor updates ownership information
7. Obtain title insurance: For purchase transactions, title insurance protects the new owner's interests

While this might seem straightforward, each step has important nuances. Missing details, incorrect legal descriptions, or improper execution can invalidate your deed or create future title problems.

What Documents Do You Need to Transfer Title in Utah?

The specific documents required depend on your transfer scenario, but certain items are universal:

Essential Documents for All Transfers

• The deed itself: Properly prepared using the appropriate deed form for your situation
• Current deed or legal description: You need the exact legal description of the property, typically found on the most recent recorded deed
• Government-issued ID: The notary will require photo identification from the grantor
• Recording fee payment: Cash, check, or credit card to pay the county recorder's fee

Additional Documents for Purchase Transactions

• Purchase agreement: The signed contract between buyer and seller
• Title commitment: The title company's report on the property's title status and any issues that must be resolved
• Payoff statements: If the seller has a mortgage, you'll need the exact payoff amount
• Settlement statement: The HUD-1 or Closing Disclosure showing all financial transactions
• Deed of trust: If the buyer is financing, they'll execute a deed of trust giving the lender security interest
• Title insurance policies: Both owner's and lender's policies (if applicable)

Documents for Other Transfer Types

Specific scenarios require additional documentation:

• Inheritance transfers: Death certificate, letters testamentary or letters of administration, potentially a probate court order
• Divorce transfers: Final divorce decree specifying the property division
• Trust transfers: The trust document showing the trustee's authority
• Gift transfers: While not legally required, a gift letter documenting the transfer can be valuable for tax purposes

How Much Does It Cost to Transfer Property Title in Utah?

One of Utah's significant advantages is the absence of a real estate transfer tax or documentary stamp tax. Many states charge a percentage of the sale price—sometimes 1% or more—but Utah property owners avoid this expense entirely.

However, property transfers still involve costs:

For non-purchase transfers (gifts, adding spouse to title, inheritance), costs are minimal—often just the recording fee and potentially title company services if you choose to use them. A simple quitclaim deed between family members might cost under $100 if you prepare it yourself, or $300-$500 if a title company prepares it.

How Do You Transfer Title When Selling Property in Utah?

The traditional property sale is the most common title transfer scenario. Here's how the process typically unfolds in Utah:

Step 1: Negotiate and Sign a Purchase Agreement

Once a buyer and seller agree on terms, they execute a purchase agreement (often called a REPC—Real Estate Purchase Contract—in Utah). This contract specifies the price, closing date, contingencies, and other terms. Most Utah transactions use the standard form prepared by the Utah Association of Realtors.

Step 2: Open Escrow with a Title Company

The parties select a title company to handle the transaction. The title company opens an escrow account, orders a title search, and begins the closing process. In Utah, buyers typically choose the title company, though this is negotiable.

Step 3: Title Search and Examination

The title company searches public records to verify the seller owns the property and identify any liens, judgments, easements, or other encumbrances. They produce a title commitment outlining the current state of the title and any issues that must be resolved before closing.

Step 4: Resolve Title Issues

If the title search reveals problems—unpaid liens, judgment against the seller, gaps in the chain of title—these must be addressed. The seller typically pays off liens from the sale proceeds. Other issues might require quitclaim deeds from third parties, corrective documents, or court action.

Step 5: Prepare Closing Documents

The title company prepares all closing documents, including the warranty deed, settlement statement, deed of trust (if buyer is financing), and title insurance policies. Documents are reviewed by all parties before closing.

Step 6: Close the Transaction

At closing, the seller signs the deed and other documents, and the buyer provides the purchase funds (usually by wire transfer). The title company reviews all documents, ensures everything is properly executed, and coordinates the exchange.

Step 7: Record and Disburse

After closing, the title company records the deed and deed of trust (if applicable) with the county recorder. Once recording is confirmed, the company disburses funds—paying off the seller's existing mortgage, paying real estate commissions, and distributing the remaining proceeds to the seller.

This entire process typically takes 30-45 days from contract to closing, though all-cash transactions can close in as little as a week if necessary.

What's the Process for Transferring Title Through Inheritance?

When someone dies owning Utah real estate, how the property transfers depends on the deceased person's estate planning and whether the estate requires probate:

Transfer Through Will (Probate)

If the deceased left a will naming specific beneficiaries for the property, the personal representative (executor) must go through probate—the court process that validates the will and authorizes distribution of assets. For real estate transfers, this involves:

1. Opening probate in the district court of the county where the deceased lived
2. Getting appointed as personal representative by the court
3. Obtaining letters testamentary (the court document proving authority to act)
4. Preparing a deed from the estate to the beneficiary
5. Recording the deed along with the death certificate and letters testamentary

Transfer Without Probate

Several mechanisms allow Utah property to transfer without probate:

• Joint tenancy with right of survivorship: The property automatically transfers to the surviving joint tenant. Record an affidavit of survivorship with the death certificate.
• Transfer-on-death deed: Utah allows TOD deeds where the owner names a beneficiary who automatically receives the property at death. The beneficiary records the deed with the death certificate.
• Living trust: Property in a revocable living trust transfers according to the trust terms without probate. The successor trustee executes a deed from the trust to the beneficiaries.
• Small estate affidavit: For estates valued under $100,000 with no real property or estates with only homestead property under $100,000, Utah allows a simplified affidavit process after 30 days.

Handling Inherited Property from Out-of-State

If you inherit Utah property but live elsewhere, the process is the same—Utah law governs real property located in Utah regardless of where you live. You may need to travel to Utah to handle certain aspects, though many title companies can accommodate remote signings.

How Do You Transfer Title During or After Divorce in Utah?

Divorce often requires transferring property from joint ownership to one spouse. The process depends on how the divorce decree addresses the property:

When the Decree Orders Transfer

If the divorce decree specifically awards the property to one spouse and orders the other to execute a deed, the process is:

1. Prepare a quitclaim deed from both spouses to the spouse receiving the property
2. Both spouses sign the deed (or the court can order signature if one spouse refuses)
3. Record the deed along with a certified copy of the divorce decree

Refinancing Considerations

If the property has a mortgage in both names, the spouse keeping the property should refinance to remove the departing spouse from the loan. Simply removing someone from the deed doesn't remove their obligation on the mortgage—the lender must release them through a refinance or assumption.

Many divorce decrees require the spouse keeping the property to refinance within a specified timeframe. If they fail to do so, the decree often provides for sale of the property and division of proceeds.

Handling Equity Division

When one spouse receives the property but must compensate the other for their equity share, this can happen through:

• A cash payment to the departing spouse at the time of transfer
• Offsetting the equity against other marital assets
• A promissory note from the receiving spouse to the departing spouse
• Recording a deed of trust in favor of the departing spouse to secure their equity share

What's Involved in Gifting Property to Family Members?

Gifting property to children, grandchildren, or other family members is common for estate planning purposes. The title transfer process is simpler than a sale, but important considerations apply:

The Transfer Process

To gift property in Utah:

1. Decide whether to use a warranty deed or quitclaim deed (quitclaim is typical for gifts)
2. Prepare a deed from the donor to the recipient
3. Have the donor sign the deed before a notary
4. Record the deed with the county recorder
5. Consider preparing a gift letter documenting that no payment was exchanged

Tax Implications of Gifting Property

Property gifts have important tax consequences:

• Federal gift tax: Gifts exceeding the annual exclusion ($18,000 per person in 2024) count against your lifetime gift and estate tax exemption. You must file a gift tax return but likely won't owe tax unless you've exhausted your lifetime exemption.
• Basis considerations: Unlike inherited property, gifted property doesn't receive a stepped-up basis. The recipient takes your original basis in the property, which could result in significant capital gains tax if they later sell.
• Property tax reassessment: Some transfers to children may qualify for exemption from property tax reassessment under certain circumstances, though Utah handles this differently than states like California.

Alternatives to Outright Gifting

Instead of gifting property during your lifetime, consider these alternatives:

• Transfer-on-death deed: You retain full ownership during life, but the property automatically transfers to your chosen beneficiary at death with a stepped-up basis
• Life estate deed: You retain the right to live in and use the property for life, while giving the remainder interest to your children
• Revocable living trust: Transfer the property to your trust, maintaining full control during life while providing for smooth transfer at death

Each approach has different tax, legal, and practical implications. Consult with an estate planning attorney before making significant property transfers.

What Role Does a Title Company Play in Property Transfers?

While Utah doesn't require title companies for property transfers, using one provides substantial benefits and protections:

Services Title Companies Provide

• Title search and examination: Comprehensive review of public records to identify any title issues
• Title insurance: Protection against losses from title defects, both known and unknown
• Deed preparation: Professionally prepared deeds that meet all legal requirements and include proper legal descriptions
• Escrow services: Neutral third-party holding of funds and documents until all conditions are satisfied
• Closing coordination: Managing the entire closing process, ensuring all documents are properly executed
• Recording services: Submitting documents to the county recorder and ensuring proper recordation
• Disbursement: Distributing funds to all parties according to the settlement statement
• Problem resolution: Addressing title issues, liens, and other complications that arise

When You Absolutely Need a Title Company

Certain situations make title company involvement essential:

• Any transaction involving mortgage financing (lenders require title insurance)
• Purchases from sellers you don't know personally
• Properties with complex title histories
• Commercial real estate transactions
• Transactions involving out-of-state parties
• Properties with known or suspected title issues

Why Choose an Experienced Utah Title Company

Not all title companies are equal. Established Utah companies like Prospect Title bring advantages that newer or out-of-state companies can't match:

• Local expertise: Deep knowledge of Utah property law, county recording requirements, and common title issues in different areas
• Relationships: Established connections with county recorders, attorneys, and other professionals that can expedite problem resolution
• History: Decades of experience means they've encountered virtually every title situation and know how to resolve issues efficiently
• Resources: Access to comprehensive title plants and historical records that might not be available to newer companies

Since 1967, Prospect Title has been helping Utah property owners navigate title transfers of all types. Whether you're buying your first home, transferring property to children, or handling an estate, experienced guidance protects your interests and ensures the transfer is done correctly the first time.