Be Cautious When Using Quit Claim Deed
REM #A711
By Ilyce R. Glink
Summary: A reader purchased a house with his girlfriend and now they are splitting up. Ilyce explains why a quit claim deed is only part of the solution for cleaning up the couple's finances.
Q: My girlfriend and I recently bought a house together. Six months later she
decided she wants out.
People have recommended a quit claim deed as a solution.
Will this work or is there is a better solution? Does the quit claim deed relinquish her of her responsibility for the mortgage? I would greatly appreciate any advice you can give me
A: A quitclaim deed transfers any interest you may have in a property to someone else. The key word in that sentence is “may.” I can transfer my interest in the Brooklyn Bridge to you by using a quitclaim deed. But unless I actually own a piece of that bridge, the quitclaim deed is worthless.
In your case, your girlfriend can quit claim her interest in the property to
you. However, if she quitclaims the house to you, it does not relieve her of
her responsibility to the mortgage – and it will put her in a really difficult
position down the line. She will owe on the mortgage (and have her credit tied
up with it), but not own any part of the property. She will lose any leverage
she has to make sure you make your mortgage payments on time so her credit doesn’t
get wrecked.
The question you must ask yourself is this: can you afford to refinance the
mortgage in your name only? That is the only way to get her name off of the
loan. If not, then she is going to have to live with the consequences of her
poor decision to buy this house with you, without thinking through the long-term
ramifications of that decision.
You should speak to a real estate attorney about what your options are and what
is the best way to proceed.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
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