Quitclaim Deed with a Mortgage 2026: Legal Risks, Due-on-Sale & Refinance Rules
Adding or removing someone from your deed? Understand the risks before you file. Learn how quitclaim deeds interact with mortgages, Due-on-Sale clauses, and when you must refinance.
⚠️ Critical: A Quitclaim Deed Does NOT Transfer the Mortgage
The #1 mistake people make: they think filing a quitclaim deed also transfers the mortgage. It does not. The person who signed the mortgage remains 100% legally responsible for the loan — even after giving away their ownership interest in the property. If the new owner stops paying, the original borrower's credit is destroyed and the lender can foreclose.
Before filing a quitclaim, understand your refinance options to protect yourself.
Quitclaim Deed vs Warranty Deed: What's the Difference?
| Feature | Quitclaim Deed | Warranty Deed |
|---|---|---|
| Title Guarantee | NONE — transfers only what the grantor owns | Full warranty of clear title |
| Protection for Buyer/Grantee | None — buyer assumes all risk | Seller guarantees against all claims |
| Common Use | Family transfers, divorce, adding spouse, trust transfers | Standard real estate sales |
| Title Insurance | May be voided — check with insurer | Maintained with new owner |
| Liens/Encumbrances | Buyer inherits any existing liens | Seller clears all liens before transfer |
| Cost | $50–$500 (filing + optional attorney) | $500–$2,000+ (title search + attorney) |
Need to Refinance After a Deed Transfer?
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Compare Refinance Lenders →📜 Garn-St. Germain Act: Which Transfers Are Protected from Due-on-Sale?
The Garn-St. Germain Depository Institutions Act of 1982 prohibits lenders from enforcing the Due-on-Sale clause for certain exempt transfers. Here's what's protected and what's not:
| Transfer Type | Due-on-Sale Protected? | Details |
|---|---|---|
| Transfer to spouse | ✅ Yes — Exempt | Adding spouse to deed, divorce transfer to spouse |
| Transfer to children | ✅ Yes — Exempt | Gift or inheritance to direct descendants |
| Transfer to revocable trust | ✅ Yes — Exempt | Estate planning — grantor remains beneficiary |
| Transfer upon death | ✅ Yes — Exempt | Inheritance via will or intestate succession |
| Transfer upon divorce decree | ✅ Yes — Exempt | Court-ordered property division in divorce |
| Transfer to non-family member | ❌ NOT Exempt | Lender CAN call the loan due — refinance required |
| Sale to third party | ❌ NOT Exempt | Standard sale triggers Due-on-Sale — buyer must get new loan |
| Transfer to LLC or corporation | ❌ NOT Exempt | Lender can enforce Due-on-Sale — refinance in entity name |
This table is for educational purposes only and does not constitute legal advice. Consult a real estate attorney for your specific situation.
📝 How to File a Quitclaim Deed with a Mortgage: 5 Steps
Step 1: Obtain a Quitclaim Deed Form
Get a state-specific quitclaim deed form from your county recorder's office, an attorney, or an online legal service. Each state has different formatting requirements.
Step 2: Complete the Deed
Fill in: grantor name (current owner), grantee name (new owner), property legal description (from your current deed), and consideration amount (often $1 or "love and affection" for family transfers).
Step 3: Sign in Front of a Notary
The grantor must sign the deed in the presence of a notary public. Some states also require witnesses. The grantee does not need to sign.
Step 4: Record at County Recorder's Office
File the notarized deed at the county recorder where the property is located. Pay the recording fee ($10–$100) and any required transfer taxes.
Step 5: Notify Your Insurance & Tax Assessor
Update your homeowner's insurance policy to reflect the new ownership. The county tax assessor may reassess property taxes based on the transfer.
🏠 Common Quitclaim + Mortgage Scenarios
Scenario 1: Adding a Spouse After Marriage
Situation: You bought the house before marriage and want to add your spouse to the deed.
Solution: File a quitclaim from yourself to "you and spouse as joint tenants with right of survivorship." Exempt from Due-on-Sale. Mortgage stays in your name only.
To also add spouse to mortgage: You must refinance with your spouse as co-borrower.
Scenario 2: Divorce — Removing Ex-Spouse
Situation: Divorce decree awards you the house. Ex-spouse is on both deed and mortgage.
Solution: Ex-spouse signs quitclaim deed transferring their interest to you. This removes them from the DEED only. To remove them from the MORTGAGE, you must refinance or seek a mortgage novation.
See our guide: Remove Ex-Spouse from Mortgage Without Refinancing
Scenario 3: Transferring to a Trust for Estate Planning
Situation: You want to transfer your home into a revocable living trust.
Solution: File a quitclaim deed from yourself to "Your Name, Trustee of the [Name] Revocable Trust." Exempt from Due-on-Sale under Garn-St. Germain. Mortgage remains unchanged. Notify your lender and insurance company.
Scenario 4: Adding an Adult Child to the Deed
Situation: You want to add your adult child to the deed for estate planning or to avoid probate.
Solution: File a quitclaim deed adding the child as joint tenant. Exempt from Due-on-Sale. Warning: This creates a gift tax implication if the property value exceeds the annual gift exclusion, and the child's creditors can place liens on the property. Consider a trust instead.
Top Refinance Lenders for Deed Transfers in 2026
| Lender | Best For | Min. Credit | Action |
|---|---|---|---|
National Lender NetworkTop Pick | Divorce refinance, adding/removing co-borrowers | 620+ | Check Rates → |
| Cash-Out Refinance Lenders | Buyout ex-spouse's equity share | 620+ | Compare → |
Frequently Asked Questions About Quitclaim Deeds with Mortgages
Can I use a quitclaim deed if the property has a mortgage?
Yes, you can file a quitclaim deed on a property with an existing mortgage. The quitclaim transfers ownership interest in the property but does NOT transfer or affect the mortgage loan. The original borrower remains fully responsible for the mortgage payments. The lender is not notified when a quitclaim is filed, but the transfer may trigger the Due-on-Sale clause in the mortgage contract.
Check refinance options for deed transfer →Does a quitclaim deed trigger the Due-on-Sale clause?
Technically yes, but the Garn-St. Germain Depository Institutions Act of 1982 provides exemptions that protect most transfers. Transfers to a spouse, children, revocable trust, or upon divorce do NOT trigger Due-on-Sale enforcement. However, transfers to non-family members or unrelated parties CAN trigger the lender to demand full loan repayment. Always check your mortgage contract's Due-on-Sale clause before filing.
How do I add my spouse to the deed if I have a mortgage?
File a quitclaim deed transferring the property from yourself to yourself and your spouse jointly (e.g., "John Doe grants to John Doe and Jane Doe as joint tenants"). This is exempt from Due-on-Sale enforcement under the Garn-St. Germain Act. Record the deed at your county recorder's office. The mortgage remains in your name only — your spouse is not added to the loan.
How do I remove my ex-spouse from the deed and mortgage after divorce?
Removing your ex from the DEED is easy — file a quitclaim deed from your ex to you. However, removing them from the MORTGAGE requires refinancing the loan in your name only, or obtaining a mortgage assumption/novation from your lender. The quitclaim alone does not remove loan liability. See our guide on removing an ex-spouse from a mortgage without refinancing for alternatives.
Compare refinance lenders →What are the risks of a quitclaim deed with a mortgage?
Key risks include: (1) The grantor (person giving up interest) is still liable for the mortgage — if the grantee stops paying, the grantor's credit is destroyed, (2) Due-on-Sale clause may be triggered for non-exempt transfers, (3) Title insurance may be voided, (4) The grantee receives no warranty of clear title — they inherit any liens or encumbrances, (5) Property tax reassessment may be triggered in some states.
Do I need to refinance after a quitclaim deed?
Not always. If the transfer is exempt under Garn-St. Germain (spouse, divorce, trust, inheritance), you typically do not need to refinance. However, if you want to add the new owner to the mortgage (not just the deed), or if the transfer is non-exempt, refinancing is necessary. Many people refinance after divorce to remove the ex-spouse from both the deed and the loan simultaneously.
How much does it cost to file a quitclaim deed?
Filing costs vary by county but typically include: recording fee ($10–$100), documentary stamp tax or transfer tax ($0.50–$4 per $1,000 of value in some states), and optional attorney fees ($200–$500) if you want legal review. Some states require a preliminary change of ownership report. Total cost is usually $50–$500 depending on your state and county.
📚 Related Legal & Mortgage Guides
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