If my brother and I own a homebut he won’t sell and I took a 300K home equity line, can I quit claim deed my interest and not be obligated to pay it back?
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If my brother and I own a homebut he won’t sell and I took a 300K home equity line, can I quit claim deed my interest and not be obligated to pay it back?
Asked on January 6, 2012 under Real Estate Law, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you took out $300,000 in equity in the home that you own with your brother where he refuses to sell his interest in the property, you can quitclaim your interest in the property to him, but the simple act of recording a quitclaim does not absolve you of any obligation on the line of credit directly with the lender.
Possibly your brother may sign some document agreeing to be liable personally on the $300,000 line of credit for you, but that does not mean that the lender will forgive you from paying on the obligation. Given the uncertainties that you have written about, I suggest that you and your brother consult with a real estate attorney as to any buy out issues between you two and equalization of equity in the parcel.
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