Glendale, AZ asked in Real Estate Law and Probate for Arizona

Q: From Glendale AZ. Quit Claim a home to a non-family member.

From Glendale AZ. My son passed, single, with no will, and no children but a live-in girlfriend. All his belongings, including the home, go to his father and me. He made a dying declaration that he wanted the house to go to his girlfriend. We would like to honor that wish. It is my understanding that the home can be quit claimed to his father and me. Can we then quit claim it to his girlfriend, or does she then have to qualify for a new loan?

Related Topics:
1 Lawyer Answer

A: A quit claim deed passes title to property to the grantee of the deed. There is no “loan” required. Title passes subject to all existing liens, assessments, and encumbrances.

If your son is the borrower on a loan which is secured by a mortgage or deed of trust giving his creditor a security interest in the property, your son’s estate remains responsible to repay the loan (subject to any applicable exemptions) and the property continues to serve as collateral for that loan until it is repaid despite the quit claim deeds.

Your son’s loan agreement may or may not require it to be repaid in full by his estate upon his death depending on the language of the loan agreement. If it does not, as long as the loan is paid according to its terms, the creditor cannot take action against the collateral.

That means neither you nor the girlfriend personally have any obligation to repay the loan but, as long as someone does, the creditor cannot “foreclose” on its security interest.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.