Will a quitclaim deed end my obligation to re-pay a loan?
August 27th, 2008 By Peter G. Miller
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 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 possible tax consequences associated with a quitclaim deed.
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