Are you wondering, “How do I file a quitclaim deed in North Carolina?” Perhaps you need to understand its purpose and how it works within the state.
Typically, a quitclaim deed acts as a conveyancing document that transfers your interest (grantor’s interest) in a property to another party (grantee). It is an official renunciation against a legal claim to that property.
What Is the Purpose of a Quitclaim Deed?
Quitclaim deeds are usually used to transfer property even when no money changes hands, such as when a parent wants to leave a home to a child or during a divorce when you want to give the home to your ex-spouse. You can also use it to correct previous real estate deeds that had defects or transfer the property to a trust or any other beneficiary.
However, it contains no warranties, thus not offering any protection to the grantee or any future buyer. You will not have any assurance of having a property title if someone offers you this kind of deed.
Quitclaim Deeds and Mortgages
You may be wondering, “Does a quitclaim deed remove me from the mortgage?” The answer is no, it does not.
Simply relinquishing an interest in a property does not relieve someone of their mortgage payment responsibilities. So, what happens when you have a quitclaim deed but are still on the mortgage documents?
In that case, you must take steps to relieve yourself of the responsibility of paying the mortgage. Otherwise, you could be held legally responsible when you stop making payments.
Read More: How to Transfer Ownership of a Real Estate Property
Quitclaim Deed Mortgage Assumption
Once you sign a quitclaim deed, the grantee who now owns an interest in the property can embark on a mortgage assumption process.
The person to whom you signed over your interest will reach out to the lender and let them know they are willing to take over the mortgage payments. And if the lender is amenable, the grantee will take over the mortgage payments after fulfilling any conditions they have been given. After that, you won’t have to keep up with the monthly mortgage payments.
It is usually easier to force the grantee to assume the mortgage responsibilities if you present the lender with a divorce decree and a quitclaim deed.
Quitclaim Deed Mortgage Modification
The mortgage modification process involves the change in the home loan payment terms. The lender can engage in this process with the grantee when the latter is assuming the mortgage payments.
You can also embark on a mortgage modification process, such as refinancing, if the deal you had with the grantee fell through and you struggle to pay. Once the mortgage agreement is restructured, your payments should become more manageable since you will get a longer payment period or be charged lower interest.
Read More: What Is a Property Transfer?
How to Fill Out a Quitclaim Deed in North Carolina
You must obtain a state-specific quitclaim deed form for North Carolina. If possible, try to obtain a form for your particular county. You can download and print such forms from template sites online, create your own using available templates or buy them from your local stores that sell such products. Always ensure it contains the proper description of the property, and if you are not sure about the quitclaim form, you may want to consult a North Carolina attorney.
Reach out to all the parties that have an interest in the property you want to hand over. They must agree with your decision.
Book an appointment with a notary public on a day that is suitable for all parties, including the grantee. Be prepared to pay a fee, which is usually $5 for each acknowledgement. So, the more grantors there are and the more pages the document has, the more you will pay.
Every party who is required to do so should fill their parts of the quitclaim deed and sign them. And then, let the notary public append their signature and seal. You must ensure the document is dated.
Ensure you gather other documents required, such as a legal property description document or mortgage deed of trust and take all of them to the county register of deeds. Also, take with you a means to pay for the recording.
Register your quitclaim deed with the county register of deeds office so it becomes part of public records after paying the required recording fee, which varies in each state and county.
For example, when filing a quitclaim deed in Wake County, NC, the deed of trust and mortgages will cost $64 for the first 35 pages and an additional $4 for extra ones; all other documents or instruments will cost $26 for the first 15 pages and $4 for any extra ones. You may not want to pay, but without registration, your deed will be invalidated. And remember, the order in which registration is done establishes the priority of the documents in question.
Ask the abstractor concerning the quitclaim record and pay attention to the book and page number. Documents that appear first have higher priority. And having such information is helpful for future references.
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- LegalZoom: What Is a Quitclaim Deed?
- EForms: North Carolina Quit Claim Deed Form
- Thomson Reuters: Assumption of Mortgage
- DeedClaim: Removing a Spouse from a Mortgage After Divorce
- The Mortgage Reports: What is mortgage loan modification, and is it a good idea?
- LegalTemplates.Net: Free North Carolina Quitclaim Deed
- NationalNotary.Org: 2022 Notary Fees By State
- Deeds: North Carolina Quit Claim Deed Information
- NCleg.Net: § 161-10. Uniform fees of registers of deeds.
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