How does a quitclaim deed work
How does a quitclaim deed work?
A quitclaim deed works as a legal document for transferring property. If someone has several real estate properties and if he wants to transfer or gift his share of property to his siblings or spouse or child then he can use a quitclaim deed. As it is already said that a quitclaim deed does not assures that the title of the property is clear from any kind of liens, so quitclaim deed is not used in the time of selling or buying a property.
The person who is quitting his claim from the property is called Grantor and the person who is getting the property is called Grantee. Generally the grantor needs to sign on the quitclaim deed but the Grantee does not need to sign on the quitclaim deed but to make the quitclaim deed valid the grantee needs to notarized and then record the deed in the Recorder’s office of his state within a certain period of time. The time period of recording a deed varies from one state to another.
What if you have a Mortgage against the property?
Now the question is What if you have a Mortgage against the property? Can you still then transfer the property to another person or entity by using a quit claim deed? If I transfer the property will I still be liable to pay the mortgage? Now if you have a mortgage against the property that you want to transfer then you should inform the lender before transferring the property and take his consent. Now you can transfer the property using the quitclaim deed but you will still be liable for the mortgage payments. So it is better if the Grantee can refinance the mortgage on his or her name when the property is transferred to his or her name.