A quitclaim is primarily used to remove the name of a person from the property. It transfers the ownership to the spouse, partner on any other person whose name was on the title. It is mainly used in divorce cases, with one party relinquishing his or her interest in the property in favor of others. Although quitclaim deed transfers the title to the new owner, any mortgage running on the property is not transferred.
How Is It Effective?
If you want to legal way to quickly remove your name from the property’s title and terminate your interest, use a quitclaim deed. You can find California quit claim deed form, in various legal forms site. When you start to fill it, you will feel that the deed will not free you from the responsibility of a mortgage and its payments.
The deed is a legal document release any interest the signer may have in the particular piece of the real-estate. It comes into effect instantaneously. It means as soon as you sign the quitclaim deed, you no longer have the rights to it. Even after the deed is signed, the property remains as collateral for debts. It includes the taxes and the mortgage, irrespective of who owns the title.
No Respite from Financial Obligations
If you signed the quitclaim deed under the assumption that it will free you from the financial obligations that you may have, it will release you from the title only and not from the mortgage. You will still be responsible to make the payments. The same is true for encumbrances that are there. These may be construction or the bank liens. While you may not be the owner of the property anymore, you are still under a legal obligation to pay any debts you might have incurred as an owner. If you fail to do so, it can initiate legal action against you.
Pending Taxes Payment Have to Be Done By You Only
Once you signed the quitclaim deed, you will not accumulate the tax debt, and it will be the responsibility of the new owner. However, any unclear taxes before the signing of the deed will have to be cleared by you only. The property may be sold to pay for the pending tax demand. Even you can be sued to pay for the debt. To reduce the tax liability, file the signed deed with the country recorder immediately so that there is no question about signing.
Protection from Liens after Signing the Deed
When a quitclaim deed is signed under the guidance of court order, the judge will give instructions to refinance the property and handle all the outstanding debts. It is in the best interest of both parties to get the mortgage of liens transferred in the name of one person by way of refinancing. For the person signing the quitclaim deed, it’s a way to make sure that he doesn’t has to pay those debts. It benefits the person retaining the title. He or she can remain assured that the property won’t be foreclosed due to failed payments.
How to Create a Quitclaim Deed?
It can easily be created at various legal forms site using California quitclaim deed form. Few details that must be part of the deed are:
• Signature of the grantor, their full legal names, mailing address, and their marital status.
• The grantees, name, mailing address, vesting, and signature is essential as well.
• The deed should have the complete details of the property.
Thus when you are signing a Quitclaim deed, ensure that any mortgage is paid the owner first or it is transferred to the new owner after the deed is signed.
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