Legal Question in Real Estate Law in California

There are enough issues in that little question to write a book about. It is just about one of the biggest mistakes you could ever make for at least a dozen reasons. Just for starters, it would make the loan due and payable immediately in full, and would allow the lender to foreclose. It could make you liable for gift tax on the equity. It will get the property reappraised for tax purposes which could raise the taxes significantly. If you no longer have enough assets to pay your debts in full, including any law suit claims against you, then you AND the person you quitclaim to (it's "quit claim" not "quick claim" because you are quitting your claim to own the property) could be sued for making a fraudulent conveyance. Those are just the top five.

Aside from what Mr. McCormick correctly states, of what advantage is it to you to do so. You are still liable to the same extent for the loan and you are giving up any equity you might have in the property.

Is this is a case where unmarried persons have co-purchased a property (e.g., boyfriend and girlfriend, parent and child) and the relationship has gone sour or the co-ownership is for some reason no longer desirable? There are ways to unwind these entanglements without serious consequences and with fair results to all. Many factors, including the consequences of a due-on-sale clause in the loan, reassessment, gift taxes, etc. need to be considered, but are not necessarily barriers to unwinding the co-ownership successfully and fairly. Feel free to contact me directly with details of your situation and I may be able to offer some (free) further advice.