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Liens can either be discharged by the seller or assumed by the buyer.
In fact, anyone who buys property with a mortgage is taking title subject to the mortgage, which is not a "free and clear" interest.
A Quit Claim deed doesn't provide warranties as to title; it's a transfer of someone's interest to someone else, w/o warranty.
Amanda, whether or not someone can create, or amend an existing Will, depends not just on dementia but on cognizance. Someone can have dementia and still be capable of executing legal documents. This is where the medical evaluation comes into play.
The daughter's efforts to "create" a new will, could in fact be addressed by a Codicil as opposed to a new Will, depending on Grandma's mental state. but the daughter can't "create" a will for Grandma, nor can she force Grandma to do so.
I agree Gmom needs a neurological eval. Get the diagnosis in writing. Good idea if POA is based on Mom being incompetent before POA takes over.
If there's no problem found, the emergency guardianship expires (and you are on the outs with both, and probably will not inherit anything and POA will be revoked). If there is a problem, then you prevent someone from taking advantage of mom.