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Can I Legally Quitclaim Deed My Home to Another Person While I’m Still Paying Off My Mortgage?

Quitclaim deeds are among the most misunderstood legal tools in existence. In essence, quitclaim deeds permit property owners to sign the “rights and interests” in the property over to a “grantee.” This grantee receives all of the benefits of property ownership without some of the financial drawbacks. However, a quitclaim deed may not hold up to close legal scrutiny in certain situations. Although it can be useful for expediting property transfers between family members or friends, it may not be ideal for transferring ownership rights between two unfamiliar parties. In such cases, a classic title transfer is far superior to a quitclaim deed.

If you’re thinking about using a quitclaim deed to transfer the title to your home to another individual or group of individuals, you’ll need to keep several things in mind. First, quitclaim deeds transfer ownership rights and interests. When you use a quitclaim deed to transfer such rights and interests, the recipient will receive all of your equity in the home. However, the quitclaim will not transfer the “mortgaged” portion of the home’s equity. In other words, your mortgage lender will still own a sizable interest in your home.

What’s more, most mortgage contracts stipulate that a home can’t be transferred via quitclaim while its mortgage lien remains in force. In fact, virtually all mortgage contracts require existing mortgage obligations to be paid in full before the quitclaim’s consummation. In your situation, this may be impossible. After all, you’ve probably chosen to quitclaim your home’s deed for financial reasons.

In order to avoid becoming involved in an unpleasant and potentially problematic financial dispute, you must come to an agreement with your quitclaim grantee about what to do with the outstanding balance on the property’s mortgage. It’s highly unlikely that your mortgage lender will enforce the “payoff” clause without just cause. In this case, “just cause” would involve a significant mortgage delinquency. As long as the mortgage on the home doesn’t fall into delinquency, your lender would have no reason to initiate foreclosure proceedings.

Before you use a quitclaim deed to relinquish the title to your home, draw up a written contract with the grantee. This contract should spell out the means by which the mortgage will be paid each month and outline clear restrictions on the sale or further transfer of the property. In addition, you should notify your mortgage lender of the transfer to ensure that it does not foreclose on the property without your knowledge.

How To File A Quickclaim Deed

Sometimes, it seems like courts schedule numerous pointless hearings just so the bureaucrats can collect more money and waste time. When you have real estate, you might want to transfer it quickly to take advantage of some market opportunity. The Quick Claim Deed is a good way to avoid unnecessary hassles and expenses when transferring property. Here is how to file a Quitclaim Deed.

Terminology and Circumstances for Quit Claim Deed

When both the buyer and seller of a property are co-owners or family members, then the Quickclaim Deed is a good option. Unlike other real estate deeds, the Quit Claim offers no warranties that 1) the seller owned the property or 2) that it was free of liens or encumbrances. The legal process can be very time-consuming and expensive in culling through county property records. The Quit Claim means that the seller simply “relinquishes” or “quits any claims” to said property.

Under the Quit Claim terminology, the “Seller” is called the “Grantor” and the “Buyer” is the “Grantee” of the deed. When a property has been inherited by brothers or sisters, the Quick Claim process can be used to settle disputes amicably. The seller may have partial interest in the property and may want to be paid quickly. The normally long process for transfer of a property might not be financially feasible or economically sensible. Furthermore, if both parties know the property characteristics and history, then there is no need for a formal deed process check.

Quick Claim Format

The format for the Quick Claim Deed starts with the naming of the Grantor and Grantee. The transfer of the property must be articulated in terminology similar to “The Grantor for the sum or $10,000, the receipt whereof is hereby acknowledged, does hereby remise, release and quitclaim unto the Grantee forever, all the right, title and interest the Grantor has in the following real estate: ….” After this phrase, a detailed description of the property must be made.

The name and address of both grantor and grantee must be listed on the deed. The street address and legal description of said property must be made. The bottom must be dated and signed. The form must be notarized to make the Quick Claim Deed legal.



This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

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