Legal Question in Real Estate Law in Florida

Quitclaim Deed

I own property in South Florida with a mortgage in my name. If I decide to Quitclaim Deed the property to another party:

1) am I still legally liable for the mortgage?

2) or does the financial obligation transfer to the grantee, even if my name remains on the mortgage?

I just want to know the risks of doing this.


Asked on 6/26/03, 3:13 pm

2 Answers from Attorneys

Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Quitclaim Deed

1. Yes

2. Sort of. But in any event , other than a pay-off, you will be liable. This is true evn if your grantee pays the mortgage...in which case you would be responsible if the grantree does not pay.

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Answered on 6/26/03, 3:37 pm
Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: Quitclaim Deed

You would remain liable under the mortgage (and promissory note), otherwise anyone who wanted to escape responsibility for a mortgage would simply transfer title to the property. The grantee/transferee would indirectly become obligated under the mortgage because it would be an encumbrance on his/her property, but you would also remain obligated for paying the mortgage regardless of who you quit-claim it to. Also, most mortgages have a "due on sale or transfer" clause that states that if you transfer an interest in the property without the lender's knowledge and prior consent, the entire unpaid balance of the mortgage/note becomes due. The "due on sale" clause is typically not enforced and most lenders would never know if you transferred title unless they performed a title search, but you should be aware of this issue because it may arise and you should be prepared for the possible consequences.

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Answered on 6/27/03, 1:29 am


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