If the taxes are paid, can the quitclaim holder legally take possession of the property?

Full question:

After a lender evicts the homeowners for non-payment of the mortgage, then NEVER forecloses on the property, leaving it in total disrepair, what constitutes 'abandoned property'? If the lender abandons the property, what happens to the mortgage? Can a quit claim deed signed by the former homeowner be legal? If the taxes are paid, can the quitclaim holder legally take possession of the property?

• Category: Real Property
• Subcategory: Foreclosure
• Date: 04/07/2025
• State: California

Answer:

As a general rule, the law of abandoned property applies to personal property only, not to real property. Two legal doctrines, however, allow persons to claim an interest in real property owned by another, those two doctrines are adverse possession (also known as adverse use) and prescription (also known as prescriptive use). Both doctrines require years (5-10 generally) to perfect. Neither applies to the situation you describe.

Addressing the issue of disrepair, various legal remedies may be available to neighbors. First, in either a condominium or a residential development subject to covenants, conditions, and restrictions (CCRs), the owner's association or other landowners may have authority to require the owner of any property in disrepair to repair the property. Failure to repair within a period following notice to do so, may trigger a right in the association to undertake the repairs, and then file a lien against the repaired property for the cost of repairs. Note, this would seldom if ever include a right to repair a structure such as the residence itself. Second, neighboring landowners could bring a legal action for nuisance against the offending landowner asking the court to require the landowner to abate the nuisance. These are general legal concepts, the details of which vary from state-to-state and case-to-case within any one state.

A quitclaim deed conveys only whatever interest the landowner has in the property at the time of conveyance, and under the laws of most states, does not carry after-acquired title. That means any grantee under a quitclaim deed takes the property "AS IS" and subject to all encumbrances, such as any encumbrances (i.e., mortgages) and all defects of title. A quitclaim deed is the least significant deed form, in that a quitclaim deed carries no warranties; a quit claim deed can legitimately be characterized as a release by the grantor of whatever right, title, or interest, if any, the grantor has in the real property described in the quitclaim deed.

Grantees under all deeds take the property subject to all recorded matters including encumbrances (mortgages, liens, easements, CCRs, etc.). Real property law is neither simple nor readily accessible. Any person contemplating purchasing distressed real property should consult a knowledgeable and experienced real-property lawyer. Links are appended below to relevant legal concepts and to US Legal's webpage of California real-estate lawyers.