What is an assumption? Is it different than a quit claim deed?

Question

What is an assumption? Is it different than a quit claim deed?

Answer 1

In an assumption, the buyer agrees to "assume" (i.e., pay) the encumbrance.  Thus, the buyer could be personally obligated, beyond the value of the underlying property.

A quit claim deed conveys the interest the seller has in the property, subject to any existing encumbrance or other claims against the property.  Existing claims are limited to the property, and are not transformed into a claim against the buyer.

Answer 2

the first answer is correct.  these are two entirely seperate entities.  An assumption means you assume financial responsibility to repay the debt.   A quit claim deed changes who is the legal owners of the property

Answer 3

These are completely different "animals" used for completely different and unrelated reasons.

A quit-claim deed, is a transfer of any and all interests belonger to a grantor to a third party without any guarantee or promise of holding title. It puts all people on technical legal notice that a purported title transfer has been made and prospective tranferees are notified to the existence of possible superior legal interest claims.

   An assumption is not a transfer of title. It does not put the public on any notice of any changes to legal title and simply reflects an agreement between one party to allow his/her own rights to be undertaken and assumed by another.

   An assumption is basically meaningless and of little or no value. If you are engaged in a real estate transaction be certain you have a realtor or attorney. Title insurance would be a nice touch if available.

        This area is not one for novices to play with if the property is of value and the transaction has some significant value.