Is it a must to sign a quit claim deed if my husband wants to refinance the house? He bought the house years ago (before we married), now he told me I need to sign to quit claim deed coz he wants to refinance the house. Is it true and is it a must?
1 Answer from Attorneys
Lenders will want you to sign a quit claim deed so that, at least on paper, you have no right to the real property. Legally, whether you sign the quit claim deed may have no bearing on what your financial interest may be in the real property due to community property law.
The lender wants you to sign the documents so that the lender does not have to worry about having to sue you if the lender wants to foreclose on the property.
The husband may have bought the house before the marriage. However, he likely is paying the mortgage, property taxes, and other expenses of the real property during marriage using community property funds. If community property funds are expended on the real property, the marital community likely has a financial interest in the real property.
As always, you should review all documents, preferably with your attorney, carefully before signing them.