Legal Question in Real Estate Law in California

If the other person is not on the purchase agreement, then on THIS transaction or transfer (from seller to you), he is not entitled to be on the deed because the agreement to sell did not include him as a purchaser. Adding him to the deed is a separate transaction and the escrow company is only empowered to document this transaction, not two transactions. If you want him to be added to the deed that the escrow company is preparing, then you have to add him to the purchase agreement, but I don't know if the seller would agree to that. Ask them.

Larry L. Doan, Esq.

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I'm not sure I understand or agree with your reasoning about reassessment at a higher value. If you become the owner of the property at 10 a.m. and transfer an interest to someone else at 11 a.m. the same day, how can a reassessment at a higher value occur?

I understand, of course, that most assessments are based primarily or exclusively upon the consideration paid by the buyer. If one or the other of the back-to-back transactions were for less (or more) that fair market value, that could trigger unfavorable appraisal activity. But if you buy 100% of a property for $100,000 at 10 a.m. and give a 50% interest to someone else at 11 a.m., the assessor would probably figure each half interest was worth $50,000.

You need to go over your numbers and your reasoning. If you are buying, selling, or reporting a transaction, at a value other than fair market value, all bets are off.

As a couple of side notes: Some real property sales agreements indicate the purchaser as "John Doe, or assignee." Such a designation would permit substitution of another as a buyer or co-buyer at close of escrow, I think. Also, you might ask your escrow company about setting up a "double escrow" or "back-to-back closings" so that there would be, in net effect, two interdependent but separate transactions.