If you own real property in New York and wish to transfer all or partial ownership interest, you can do so with a warranty deed or quitclaim deed. However, if you owe money on your property and have a mortgage, then you cannot transfer all of your interest in the property without the approval of the lender and payment of your mortgage balance.
Even if you transfer only a partial interest and retain some percentage of ownership the lender may need to be advised. The quitclaim deed must be signed by you as the owner/grantor, and your signature should be notarized. The deed must be delivered to the grantee in order to be valid. It should also be recorded with the county recorder’s office in the county where the property is located.
Keep in mind that transferring partial ownership does not relieve you from paying your mortgage to your lender. You are still responsible for your loan and making sure that your mortgage payments are made and that the property is maintained.
When you have a mortgage on your New York home or other property and you transfer it without the lender’s approval, that’s similar to selling someone else’s property – the lender will foreclose on the house and reverse the transfer.