How do I get a quitclaim deed prepared and recorded to transfer a property interest for a mortgage or loan in my name? – North Carolina

Short Answer

In North Carolina, a quitclaim deed can transfer whatever ownership interest the current owner has, but it does not “refinance” a loan or automatically move a mortgage into a different person’s name. To make the transfer effective against third parties, the deed must be properly signed, notarized, and recorded with the Register of Deeds in the county where the property sits, and the applicable deed transfer tax and required transfer information typically must be handled at recording. Because lenders often require more than a quitclaim deed (and may restrict transfers), it is common to coordinate the deed with the lender before recording.

Understanding the Problem

In North Carolina, can a property owner use a quitclaim deed to transfer an ownership interest so that a mortgage or loan ends up “in one person’s name,” and what steps are required to prepare and record that deed with the county Register of Deeds? This question focuses on the ownership transfer and the recording process, including what must be on the document for the Register of Deeds to accept it. The question also raises the timing trigger that matters most: the deed is not fully effective for notice purposes until it is recorded in the proper county.

Apply the Law

North Carolina law allows an owner (the grantor) to convey an interest in real property to someone else (the grantee) by deed, including by quitclaim deed. A quitclaim deed generally conveys only the interest the grantor actually has (if any) and does not promise clear title. Recording the deed with the Register of Deeds in the county where the property is located places the public on notice of the transfer and is a key step in protecting the grantee’s interest. Separately, mortgages and deeds of trust are their own recorded instruments; changing who is responsible for the loan is typically a lender issue and not something a quitclaim deed can accomplish by itself.

Key Requirements

Correct deed content: The deed must identify the grantor and grantee, clearly describe the property, and state what interest is being conveyed (for a quitclaim deed, that is typically “all right, title, and interest,” without title promises).
Proper execution and acknowledgment: The grantor must sign, and the signature must be properly acknowledged (notarized) so the Register of Deeds can record it.
Recording package completed: The deed must be delivered to the correct county Register of Deeds for recording, and the recording fees and any applicable deed transfer tax and transfer-reporting information must be handled at submission.

What the Statutes Say

N.C. Gen. Stat. § 105-228.30 (Excise tax on conveyances) – Imposes a deed transfer (excise) tax on instruments conveying an interest in real property and generally requires the transferor to pay it to the Register of Deeds before recording.
N.C. Gen. Stat. § 105-317.2 (Report on transfers of real property) – Requires specific transfer information to be included in deeds conveying real property to help counties with tax appraisal; failure to include it generally does not void a duly recorded deed.

Analysis

Apply the Rule to the Facts: Because no specific facts are provided, the main variables are (1) whether there is an existing mortgage/deed of trust, and (2) whether the goal is a change in ownership, a change in loan responsibility, or both. If the goal is only to transfer ownership (for example, adding or removing a co-owner), a quitclaim deed can be an appropriate instrument if drafted and recorded correctly. If the goal is to make the mortgage or loan “in one person’s name,” a quitclaim deed alone usually does not accomplish that; the lender typically must approve an assumption, release, refinance, or similar loan change, and the deed transfer may also trigger lender restrictions.

Process & Timing

Who files: Typically the grantee, the grantor, or the closing/recording agent. Where: The Register of Deeds in the North Carolina county where the property is located. What: A properly prepared quitclaim deed with a notarized acknowledgment, plus any county-required cover sheets or submission information, and payment of recording fees and any applicable excise tax. When: As soon as the parties sign and notarize the deed and any lender-required conditions are satisfied.
Review and acceptance: The Register of Deeds reviews the document for recordability (including execution/acknowledgment and required transfer information). If something is missing, the Register may reject the deed or require correction before recording. Processing time can vary by county and by whether recording is done in person, by mail, or electronically (if offered).
Recording and confirmation: Once accepted, the Register records the deed in the public records and returns a recorded copy or receipt (depending on the submission method). The recorded deed becomes part of the chain of title used by lenders, title insurers, and future purchasers.

Exceptions & Pitfalls

Thinking a quitclaim deed changes the loan: A quitclaim deed can change ownership, but the promissory note and deed of trust usually stay in place unless the lender agrees to a change. People can end up transferring title while remaining personally responsible for the loan, or transferring title in a way that violates loan terms.
Due-on-sale and lender consent issues: Many deeds of trust restrict transfers without lender approval. Even a transfer to a family member or co-owner can create problems if not coordinated with the lender.
Incorrect legal description or missing execution details: A deed with an incomplete property description, misspelled names, or a defective notary acknowledgment may be rejected for recording or create title problems later.
Transfer tax and transfer-reporting errors: The excise tax can apply to conveyances of an interest in real property, and deeds usually must include transfer-reporting information for county tax administration. Misstating consideration/value or skipping required fields can delay recording.
Unintended title consequences: A quitclaim deed provides no title promises. If the grantor has liens, judgments, or no valid ownership interest, the grantee may receive less than expected.

Conclusion

In North Carolina, a quitclaim deed can transfer whatever ownership interest the grantor has, but it does not, by itself, put a mortgage or loan into a different person’s name. A recordable quitclaim deed generally must identify the parties and property, be signed and properly notarized, and be recorded with the Register of Deeds in the county where the property is located, with required transfer information and any applicable excise tax handled at recording. Next step: prepare a county-recordable quitclaim deed and record it with the county Register of Deeds promptly after notarized signing.

Talk to a Real Estate Attorney

If you’re dealing with a property transfer connected to a mortgage or loan and need a quitclaim deed prepared and recorded correctly, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.