Legal Question in Real Estate Law in California

Re: Quit Claim mortaged property

You can quit claim any property to anybody, but that does not relieve you of liability to the mortgage holder. In other words, why would you give up ownership of the property while still being liable for the mortgage?

Re: Quit Claim mortaged property

You can quit claim a property to anyone but the question is why you would want to do this. First of all, the decision is usually irreversible. Second, the transferee (the person you give it to) takes it subject to the mortgage, will still have to pay it and the property can be foreclosed if it is not. Third, you trigger all types of tax consequences, including a reassessment and possibly gift taxes. Fourth, it is a violation of the due on sale cause in the mortgage and could give the lender grounds to foreclose even if you remain current on the debt. Finally, any foreclosure will be a mark on your record, not the transferees, if he or she fails to pay the loan.

You should speak to a real estate or probate attorney. Often there are much smarter ways to accomplish your goals rather than just signing a quit claim deed.

Re: Quit Claim mortaged property

The Quitclaim Deed transfers what rights the title owner has in the property to the new owner, but the original owner will still be primarily responsible for the existing mortgage and the new owner takes subject to the existing mortgage.

If passing the subject property to a family member for tax benefits is the desire, please feel free to contact our office to assist you in designing a family or business trust. We can be reached at (626) 578-0708 or online at No-Probate.com.

Re: Quit Claim mortaged property

All of the previous answers are correct and you should consider each point raised. An additional matter should be brought up that may or may not affect your situation. Some people try to transfer assets to family members to avoid their creditors, or to establish eligibility for certain MediCal benefits or the like. Such transfers are reversible if discovered since they are considered fraudulent.

Re: Quit Claim mortaged property

Yes, yes, in that order. Quit claim deeds are but one type of conveyance instrument that transfers title to real estate. It transfers only such interest as the Grantor possesses with no warranty of title. If conveyance is made without payment of full value a gift is being made and a federal gift tax return must be filed. If it is not a gift but a convenience for some reason, with real ownership intended to remain in the grantor until death, it may prove an invalid transfer. You don't give enough information to give any meaningful advice.