Can land be deeded to someone else if there is still a mortgage on it?

UPDATED: Oct 1, 2022

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Can land be deeded to someone else if there is still a mortgage on it?

A friend of mine wants to deed me 2 acres of the 25 acres of property they

currently have mortgaged in exchange for work done on the property. Can they do this while the whole parcel is still under a mortgage?

Asked on June 24, 2018 under Real Estate Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

While you need to check the exact terms of this specific mortgage to be sure, a mortgage typically states that it must be paid off if and when the property is transferred. If that is the case here, then the property cannot be deeded--which is a transfer of the property--without paying the mortgage (whether in "cash") or by replacing it with a new mortgage in the name of the new owner. 
If the mortgage does not require that the mortgage be paid to transfer the property, it could be deeded in this circumstance, but that would be unusual. 

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