Understanding the Purpose of a Quit Claim Deed

A quitclaim deed is a term used in property law to describe a document by which a person gives up any interest that person may have in a piece of real property and passes that claim to another person.  Quitclaim deeds are typically used for transfers between family members, to move property in or out of a trust, as a gift, or to eliminate certain problems with the title of the property.

A quitclaim deed does not release the party signing the deed from their obligations under any mortgage or other lien secured against said property. Therefore, when used in the context of most family law matters such as a divorce, it is commonly recommended that a quitclaim deed only be signed when arrangements have been made to relieve the executing party from liability for the property as well. 

One of the easiest means of being released from one's obligations under a mortgage pursuant to the execution of a quitclaim deed is through refinancing. The party to whom the property was conveyed must refinance the property using their own income, assets and credit, and may not use the income; assets or credit of the party who has quit claimed the property.