What action does a quitclaim deed NOT facilitate?

A quitclaim deed is primarily used to transfer property ownership without any warranties regarding the validity of the title. This means that when a quitclaim deed is executed, the grantor ("the person transferring the property") relinquishes any claim they might have to the property, but they do not guarantee that they have a valid title to transfer. Therefore, it effectively facilitates the transfer of ownership, helps clear title defects (by transferring the interest and making the current claim on the property clear), and can distribute property interests among co-owners or heirs.

Creating a new mortgage, however, is not something a quitclaim deed does. A quitclaim deed does not involve any financing or mortgage creation. In fact, to create a new mortgage on the property, a deed of trust or a mortgage deed is typically used, reflecting the lender's financial interest in the property. Consequently, while a quitclaim deed transfers ownership quickly and simply, it does not facilitate financing actions like securing a mortgage, which is critical for property transactions involving borrowed funds.