Adding a Person to a Deed Using a Quit Claim Deed

One of the most common incorrect assumptions in real estate is that someone can be added to a deed. If one person owns a piece of real estate and wants to bring on another owner, this means that the current owner would give up their interest in the property to themselves and the other person. Both people would acquire their interest in the property at the same time in the chain of title. The chain of title in real estate has been established so that an interest in real estate cannot be valued by the amount of time an owner has been in possession of the real estate.

Using a quit claim deed is often the simplest method of bringing on another owner. The current owner – the person giving away their rights to the property – would be the grantor in the quit claim deed. The current owner would also be one of the grantees, the persons receiving the grantor’s rights to the property. The new person acquiring an interest in the property would also be a grantee.

One thing to be careful of in this situation is title insurance coverage. If the current owner received title insurance on the property when they came into possession, they may want to contact the company that wrote the policy to make sure that a deed will not affect the policy.

Note also that if there is an outstanding mortgage on the property, the owner must review the terms to see if there is a notification requirement. If so, the change in title might trigger an obligation to repay the remaining debt in full, or demand a refinancing agreement to add the new owner to the note.