Real Estate News From Around The World February 9, 2012

Can A Quit Claim Deed End My Loan Obligation? Question: Will a quitclaim deed end my obligation to re-pay a loan? Answer: No. In general terms, a quitclaim deed is a device used to transfer title without guarantees. However, if Smith owes $100,000 to a lender and transfers property title to Brown with a quitclaim deed, Smith's obligation to the lender does not end. Smith still owes $100,000 -- but now Smith no longer has title to the property. Owners should not provide a quitclaim deed to anyone for any purpose without first consulting with an attorney or legal clinic. As well, be certain to speak with a tax professional regarding the tax consequences associated with a quitclaim deed. Written by Peter G. Miller. © 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices. Click here for a printer-friendly version of this article. Click here to translate this page to another language. Copyright © 2012 Realty Times. All Rights Reserved. Send Us Your Comments