The Basics of a Quitclaim Deed

A quitclaim deed is used when an owner of a piece of property wants to eliminate his or her ownership interest in it immediately. As the name implies, the owner immediately quits his or her claim to the property. 

The quitclaim deed is commonly used when couples file for a divorce. For example, if one of the individuals is going to leave, while the other spouse is going to continue living in the house, the one that is leaving could sign a quitclaim deed. This will immediately take the departing spouse off of the deed to the property. He or she will no longer have any ownership right in the property.

However, when signing a quitclaim deed, you should understand that you are not necessarily getting out of the responsibility of the mortgage. In order to get out of the mortgage, you have to refinance it, and the other individual that owns the property must be the only person on the new mortgage. This process often takes place with the signing of a quitclaim deed. Once the quitclaim deed is signed, the individual who signed it will no longer have any right to the profit from the property if it is sold in the future. 

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